The Determinants of Apartment Prices in Strovolos

Abstract

This study applies a Multiple Regression Analysis Model (Log Transformed Data) to investigate the impact of the macro and microeconomy on the apartment sale prices in Strovolos, Nicosia, Cyprus. Focusing on the period between 2014 and 2018 our results show that for the specific period the changes in apartment prices are significantly dependent on property characteristics (apartment, block, and neighborhood characteristics), fiscal and monetary environment. Specifically, mortgage interest rate, VAT applied on sales transactions, age and construction quality of the block, the enclosed area, the area of the covered and uncovered verandas, the quarter that the property is located, and the presence of a storage room were found to be significantly correlated to the price