The real estate market in Cyprus continues to actively develop despite high loan interest rates and the constant rise in housing prices. More and more residents of the country are taking out loans using real estate as collateral.
According to data from the Land Department, during 2025 a total of 13,360 mortgages on real estate were issued in Cyprus. The total value of properties transferred to banks as loan collateral amounted to almost 4 billion euros.
Experts note that activity in the lending market remains high, as many families continue to buy housing, invest in real estate, or refinance previously taken loans. At the same time, real estate is still considered one of the most reliable financial assets on the island.
Why Cypriots continue to take loans
Despite the fact that rates on new loans remain relatively high by the standards of recent years, demand for mortgages in Cyprus is not decreasing. One of the reasons remains the steady rise in real estate prices, especially in popular cities and coastal areas. In recent years, Cyprus has maintained increased interest in buying housing both from local residents and from foreign investors. This supports demand for mortgage loans and forces buyers to take out loans in order to purchase property before further price increases. In addition, banks continue to actively issue loans secured by real estate, since such loans are considered safer for financial institutions.
Mortgage statistics by cities of Cyprus
Statistics show that the largest number of mortgage transactions in 2025 was issued in the capital region.In particular, in Nicosia 5,325 real estate loans were issued with a total value of 1,179,798,529 euros. In Limassol 3,399 mortgages were issued, however in terms of the total value of properties this region ranked first. The value of real estate transferred as collateral to banks amounted to 1,414,904,611 euros.
In 2025 Larnaca accounted for 2,271 mortgages with a total amount of 533,451,335 euros, Paphos — 1,544 mortgage transactions with a total value of 515,103,980 euros, and the free areas of Famagusta — 821 mortgages worth 296,882,313 euros. Thus, the capital leads in the number of mortgage transactions, while Limassol remains the most expensive real estate market on the island.
Mortgage statistics by months in 2025
Data for 2025 show that activity in the Cyprus mortgage market during the year was uneven. The largest number of real estate loans was issued in December, and the smallest in January. In more detail:
- in January 796 mortgages were registered for 192,520,828 euros;
- in February — 936 mortgages for 230,231,225 euros;
- in March — 1,076 mortgages for 283,647,674 euros;
- in April — 1,059 mortgages for 433,815,572 euros;
- in — 1,194 mortgages for 264,619,819 euros;
- in June the number of mortgages reached 1,309, and the value of real estate amounted to 624,674,300 euros, which became one of the highest indicators in terms of total transaction value during the year;
- in July 1,226 mortgages were registered for 318,298,628 euros;
- in August — 911 mortgages for 202,242,793 euros;
- in September — 1,179 mortgages for 401,172,065 euros;
- in October — 1,153 mortgages for 294,892,794 euros;
- in November — 1,109 mortgages for 335,297,904;
- in December the market showed the maximum activity of the year — 1,412 mortgages for 358,727,166 euros.
What is happening in the Cyprus real estate market
Market experts believe that the active use of real estate as collateral reflects the stable demand for housing on the island. This is especially noticeable in large cities such as Limassol and Nicosia, where prices for apartments and houses continue to rise.
In addition, the development of infrastructure, the construction of new residential complexes, and the growing interest of international investors play a significant role. All this supports a high level of mortgage lending. Analysts note that in the coming years the Cyprus real estate market will likely maintain high activity, although the pace of growth may depend on interest rate levels, the economic situation in Europe, and the availability of bank financing.