The Effects of Immigration on Real Estate Prices in Cyprus
The aim of this study is to explore the effects of immigration on residential real estate prices in Cyprus. This aim has been addressed by the methods of multiple regression analysis, correlation analysis, Granger Causality Testing among other tests. These methods have been applied to quarterly data on immigration inflow rate, real estate prices and macroeconomic factors including the construction cost index, GPD, interest rates and consumer price index. The results revealed slightly positive correlation between immigration and real estate prices. The Granger Causality Test revealed that the direction of causation was from real estate prices to Gross Domestic Product and interest rate, implying that the former influenced the latter. The research, however, has limitations such as small sample size and further expansion of the study is required.