In the second quarter of 2025, Cyprus’s real estate market once again showed steady growth. According to data from the Central Bank of Cyprus, the overall Housing Price Index rose by 1.5% compared to the previous quarter and by 4.7% year-on-year. The main driver of this growth was the increase in apartment prices, while house prices remained almost unchanged.
General Market Trends
Between April and June 2025, apartment prices increased by an average of 3.1%, while house prices fell slightly by 0.1%. On an annual basis, the overall growth rate reached 4.7%, slightly below 4.8% recorded in the first quarter.
Apartment prices rose 5.3% year-on-year, while houses went up by 3.4%. The overall index reached 101.1 points(base level: Q1 2010 = 100).
Regional Price Overview
The highest growth was recorded in Limassol, where the index increased by 6.8% year-on-year. Other regions also saw moderate gains:
- Larnaca: +5.8%
- Paphos: +9.4%
- Free Famagusta District: +4.9%
- Nicosia: almost unchanged (+0.1%)
For houses, the trend was more mixed:
- Nicosia: down 1.6% for the third consecutive quarter
- Limassol: up 6%
- Larnaca: up 4.2%
- Paphos: up 9.8%
- Free Famagusta District: up 5.7%
Apartments appreciated especially fast in Limassol (+4.8%) and Larnaca (+8.2%), followed by Paphos (+8%), Free Famagusta (+4.5%), and Nicosia (+2.6%).
Buyer Activity and Investment Demand
Property demand in Cyprus continues to rise. According to the Department of Lands and Surveys, 4,592 property transactions were registered in Q2 2025, up 16.1% from the same period last year (3,956).
Of these, 2,875 properties were bought by Cypriots (+15.1%), and 1,717 by foreign buyers (+17.8%).
By region:
- Limassol: 1,430 transactions
- Nicosia: 1,078
- Larnaca: 1,038
- Paphos: 824
- Free Famagusta District: 222
Mortgages and Lending
The volume of new mortgage loans increased by 22.2% year-on-year, reaching €353.5 million, compared to €289.3 million a year earlier.
The average mortgage rate fell to 3.85%, down from 4.58% in 2024, making financing more accessible.
While banks continue to apply strict lending criteria, demand for housing loans is growing. According to the Central Bank’s July 2025 report, the number of mortgage applications rose significantly, especially among first-time homebuyers.
Construction Activity and Housing Supply
According to the Cyprus Statistical Service, between January and April 2025, the number of building permits rose by 12.1%, reaching 4,321 projects, compared to 3,854 a year earlier. This indicates an expansion in housing supply in response to sustained demand.
The Construction Materials Price Index rose by 1.4%, remaining high due to geopolitical factors and supply chain disruptions. Nevertheless, new residential developments continue, especially in coastal areas, where luxury projects remain highly active.