Real Estate Prices in Cyprus

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Acknowledgement

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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Abstract

In this study we try to explore the concept of “real estate prices in Cyprus” in a holistic context. The main focus of the research is on “the real estate market of Cyprus” and its impact on country's economy. The research also analyzes many aspects of “the market”. Finally the research describes various factors which are responsible for the decline in real estate prices in Cyprus.

Table of Contents

CHAPTER 1: INTRODUCTIONI

CHAPTER 2: LITERATURE REVIEWV

2.1 Cyprus a place to live:v

2.2 How the real estate market affects the economy:vi

2.4 A Short Overview of Property Investment and Developmentix

2.5 Cyprus Real Estate Markets:xi

2.6 Property Pricesxii

2.7 Reasons for Cyprus' popularityxiii

2.8 Index availabilityxv

2.9 Real Estate Indices (Co-integration Studies)xvii

2.10 Disappointing drop in Cyprus real estate pricesxviii

2.11 Investment Yieldsxviii

2.12 Real Estate Bubble:xx

2.13 The difference between the Cyprus Market and that of the more developed European/US property markets?xxi

2.14 The outlook for 2012xxii

2.15 Key Pointsxxiii

CHAPTER 3: METHODOLOGYXXIV

3.1 Research Designxxiv

3.2 Research Paradigmxxv

3.3 Rationale for a Qualitative Studyxxxiv

3.4 Research Strategy: Secondary Dataxxxv

3.5 Qualitative designxxxv

3.6 Search Techniquexxxv

3.7 Search rationalexxxv

3.8 Data Analysisxxxvi

3.9 Research Approachxxxvii

3.10 Research philosophyxxxvii

3.11 Researcher Biasxxxviii

3.12 Quality and Verificationxxxix

3.13 Reliability/Dependabilityxl

3.14 Validityxli

3.15 Ethical issuesxliii

3.16 Limitations and Suggestion for Future Researchxliv

CHAPTER 4: DISCUSSION AND ANALYSISXLV

4.1 Introductionxlv

4.2 Problems in The real estate market of Cyprus:xlv

4.3 Declines in Real Estate Prices in Cyprusxlvi

4.4 Rebalancing of Real Estate market in Cyprus:l

CHAPTER 5: RECOMMENDATIONS AND CONCLUSIONLII

5.1 Real estatelii

5.2 Recommendationlii

5.3 Conclusionlv

REFERENCELVIII

Chapter 1: Introduction

2.1 Introduction:

The main purpose of the study is to access the market price trends and determine if they meet the requirements for a bubble. The question addressed here is whether there is a bubble and we will examine the price trends in the market in order to determine the possibility of one (Ker-Lindsay 2005, Pp: 4-6).

Furthermore, the study will examine the price trends of specific market segments such as plots, apartments and fields (Ker-Lindsay 2005, Pp: 4-6). In addition, the study will try to determine if there is a correlation between the real estate prices and other external factors such as the rise and fall of the Cyprus Stock Exchange in 2000, the prices of construction materials and the LIBOR rate (Ker-Lindsay 2005, Pp: 4-6).

This is a very interesting question and an intriguing one because everybody wants to own a piece of land or want to have a house to call their own (Milesi-Ferretti and Kodres 2004, Pp: 18-20). This study will help them to determine when the time is right to make such a crucial move as to purchase a house because purchasing a house is a long-term responsibility, usually a housing loan estimates between 20-30 years ...