cyprus house — cyprus house — House prices in Cyprus are on the rise, with the latest report from the Central Bank of Cyprus (CBC) revealing a 4.7 per cent year-on-year increase in the second quarter of 2025. This growth is largely attributed to a surge in demand for apartments.
The CBC’s House Price Index (HPI) indicates that despite a slight deceleration from the previous quarter’s 4.8 per cent increase, the trend remains robust. Quarter-on-quarter, the index saw a 1.5 per cent rise, down from 1.9 per cent earlier this year.
A closer look at the different property types shows contrasting trends. Apartment prices have been accelerating, with a quarterly rise of 3.1 per cent contributing to an impressive annual increase of 5.3 per cent in the second quarter of 2025. In contrast, house prices experienced a minor quarterly decrease of 0.1 per cent, leading to a more subdued annual growth rate of 3.4 per cent.
The CBC’s data reflects significant variances across Cyprus’s districts. Limassol stands out with an annual price rise of 6.8 per cent, while Nicosia saw a minimal increase of just 0.1 per cent. Other areas like Larnaca and Paphos also recorded slower growth rates compared to previous quarters.
In terms of sales, the property market is thriving. The Department of Lands and Surveys reported a notable 16.1 per cent increase in total sales documents for all property types, reaching 4,592 in the second quarter of 2025, up from 3,956 in the same period last year. This growth stemmed from both domestic buyers, who increased their purchases by 15.1 per cent, and foreign buyers, whose activity rose by 17.8 per cent.
Limassol led the way with the highest number of transactions, recording 1,430 sales, followed closely by Nicosia (1,078), Larnaca (1,038), Paphos (824), and Famagusta (222). Notably, foreign buyers dominated the Paphos market, making up 60 per cent of transactions there, while domestic buyers accounted for a majority in the other districts.
The supply side of the market is also showing positive signs. The number of residential units approved for construction surged by 12.1 per cent from January to April 2025, rising from 3,854 to 4,321 units. This increase is a promising indicator of ongoing construction activities.
Despite a marginal annual increase of 1.4 per cent in construction materials prices, the costs remain historically high due to geopolitical factors and supply chain issues. Meanwhile, new lending for housing has seen a significant annual boost of 22.2 per cent, totalling €353.5 million in the second quarter of 2025. The average interest rate on floating-rate mortgage loans has also dropped to 3.85 per cent, down from 4.58 per cent a year earlier, which may be encouraging more buyers to enter the market.
Looking ahead, sentiment about property prices is changing. The European Commission’s Economic Sentiment Surveys revealed a sharp decline in price expectations, dropping from 62.8 to 22.2 in the second quarter of 2025. This suggests fewer participants in the market are anticipating further increases in property prices.
The CBC notes that these developments align with expectations of a gradual increase in the supply of residential units in the medium term, indicating a potential shift in the dynamics of the Cypriot property market.
