cyprus house — Cyprus house prices have shown signs of stagnation, edging higher year-on-year but witnessing a slight decline on a quarterly basis in the third quarter of 2025. This trend reflects a cooling domestic market in contrast to the upward trajectory of housing costs across the European Union.
- From January to September 2025, both construction indicators recorded increases compared to the same period in 2024, indicating a robust construction sector despite the fluctuations in house prices.
According to the latest data from Eurostat and the Cyprus Statistical Service (Cystat), the House Price Index for Cyprus in the third quarter of 2025 stood at 146.86 units, with 2015 as the reference year. This marks a 0.3 per cent decrease from the second quarter of 2025 while showing a modest annual increase of 0.1 per cent.
This annual rise comes after a series of stronger increases earlier in the year, with Cyprus experiencing a 4.5 per cent year-on-year growth in the first quarter and a 2.7 per cent increase in the second quarter. However, the data reveals that house prices have fallen for two consecutive quarters, following a 1.9 per cent decline in the previous quarter.
Cyprus house: EU Housing Market Dynamics
In stark contrast to the situation in Cyprus, the European Union recorded a robust increase in house prices, which rose by 5.5 per cent in the third quarter of 2025 compared to the same period in 2024. The euro area also saw a notable increase of 5.1 per cent. Additionally, house prices in the EU rose by 1.6 per cent from the previous quarter, highlighting a significant divergence between the local and broader European market.
Only Finland reported a decline in house prices among EU member states, with a decrease of 3.1 per cent. Meanwhile, Hungary, Portugal, and Bulgaria experienced the highest increases at 21.1 per cent, 17.7 per cent, and 15.4 per cent, respectively.
Long-term Trends in Housing Costs
Eurostat’s data underscores a growing gap between housing costs and rental prices across the EU. From 2015 to the third quarter of 2025, house prices in the EU surged by 63.6 per cent, while rents rose by a comparatively modest 21.1 per cent. In this decade, house prices tripled in Hungary and more than doubled in Portugal, Lithuania, and Bulgaria. Finland was the only country to record a decline during this period.
Despite the stagnation in Cyprus’s house prices, the rental market has continued to climb. Eurostat’s annual average index for actual rentals for housing shows a consistent upward trend in Cyprus, rising from 100.25 in 2017 to 124.94 in 2024. Monthly data for 2024 indicates that rental prices in Cyprus increased from 122.30 in January to 125.15 in June, reflecting ongoing pressures on housing-related living costs.
Construction Activity on the Rise
While house prices may be stabilising, construction activity in Cyprus is experiencing growth. In the third quarter of 2025, the Index of Production in Construction reached 125.93 units, marking a 4.2 per cent increase compared to the previous year. However, the Output Prices Index in Construction fell by 1.0 per cent compared to the second quarter but still saw a year-on-year rise of 3.7 per cent.
From January to September 2025, both construction indicators recorded increases compared to the same period in 2024, indicating a robust construction sector despite the fluctuations in house prices.
As the data suggests, the housing market in Cyprus is undergoing a period of adjustment, with prices stabilising even as construction activity and rental costs continue to rise, reflecting the complex dynamics of the broader EU housing landscape.
