According to recent data from the Central Bank of Cyprus, the residential property price index reached 102.3 points in Q3 of 2025 (with a base of 100 in 2010), marking a 1.2% increase compared to Q2 and a 5% year-on-year increase. Apartments were the main driver of growth, rising in price by 1.7% for the quarter and 6.4% year-on-year. Meanwhile, the cost of houses increased by 0.4% for the quarter and 2.6% for the year. Despite high construction costs and external economic factors, the bank noted that real estate prices in Cyprus have remained stable since the beginning of 2025.
There were differences in price dynamics between regions
It is worth noting that real estate prices varied significantly between different regions of Cyprus in the third quarter of 2025. The largest increases were recorded in Paphos, Limassol and Larnaca at 8.9%, 7.1% and 7.3% respectively. In Nicosia and the free areas of Famagusta, however, there was a slight decrease in prices of –0.5% and –0.3%, respectively.
Houses in Nicosia became 2.7% cheaper in the third quarter of 2025, while those in the free areas of Famagusta fell in price by 1.6%. Meanwhile, house prices rose by 5.5% in Limassol, 4.2% in Larnaca, and 7.4% in Paphos.
Apartment prices rose in all Cypriot cities: by 5% in Limassol, 9.6% in Larnaca, 10.5% in Paphos, 5.9% in the free areas of Famagusta, and 2.6% in Nicosia.
Demand for real estate remains high
Real estate sales in Cyprus continue to grow. In the third quarter of 2025, 4,444 sales contracts were registered on the island, which is an increase of 8.9% compared to the same quarter in 2024. Of these, 2,617 were local buyers (an increase of 8.6%) and 1,827 were foreigners (an increase of 9.3%). Limassol was the leader by region (1,431 sales contracts), followed by Nicosia (981), Larnaca (921), Paphos (878) and the free areas of Famagusta (233).
Paphos ranked first in terms of the number of transactions with foreigners. This city accounted for 68% of all contracts concluded with foreign buyers. Cypriots dominated in the other four regions.
Mortgages are becoming more accessible: rates are falling and volumes are growing
Experts have noted a growing public interest in lending. From January to September 2025, the volume of new housing loans increased by 22%, reaching €972 million compared to €796.8 million the previous year. For the third quarter of 2025, growth was 24%. In September 2025, the average mortgage rate fell to 3.03%, compared to 4.27% in September 2024. According to experts, affordable mortgages stimulate demand and create conditions for further market expansion.
Construction is expanding despite the high cost of materials
In the third quarter of 2025, the number of building permits for residential properties increased by 4.6%, rising from 7,772 to 8,128 units. This indicates a gradual increase in supply in the medium term. However, the cost of construction materials rose by 1.3% and remains high due to geopolitical events and supply chain delays.