The residential real estate market in Cyprus has entered a phase of near-total stability that is rare for Europe. According to preliminary data from the Cyprus Statistical Service, in the third quarter of 2025 the House Price Index reached 146.86 points. Compared to the second quarter, it declined by 0.3%, while on an annual basis, relative to the third quarter of 2024, it showed a symbolic increase of just 0.1%. This means that prices have effectively “frozen,” forming a narrow price corridor without sharp spikes or drops.
Such dynamics are increasingly viewed by experts as the beginning of a new cycle — a cooling period after several years of strong growth driven by high demand from foreign buyers, residency programs, and an investment boom in coastal cities.
New builds and resale market: a slow divergence
The new-build segment in the third quarter of 2025 showed a slight decline in the index to 164.28 points compared to 164.60 in the second quarter. The drop is minimal, but it indicates weakening price pressure from developers and more cautious demand, especially in premium projects in Limassol, Larnaca, and Paphos.
The secondary market also demonstrated a moderate downward movement. The resale housing price index stood at 134.75 points compared to 135.29 in the previous quarter. For buyers, this signals that negotiation windows are opening on the market, and sellers are increasingly willing to make adjustments.
Cyprus and Europe: the contrast grows
While Cyprus is keeping prices almost unchanged, the rest of Europe is experiencing a new wave of increases. In the third quarter of 2025, average housing prices in the European Union rose by 5.5% year on year, and by 5.1% in the eurozone. Compared to the second quarter, growth amounted to 1.6% in both the EU and the eurozone.
Among EU countries, only Finland recorded an annual decline of 3.1%. The highest growth rates were seen in Hungary (+21.1%), Portugal (+17.7%), and Bulgaria (+15.4%). On a quarterly basis, the largest price declines were observed in Luxembourg (–3.1%), Finland (–2.2%), and Slovenia (–1.1%), while the strongest growth was recorded in Latvia (+5.2%), Slovakia (+4.9%), and Portugal (+4.1%).
Rents are rising faster than purchase prices
While purchase prices for housing in Cyprus have practically stalled, the rental market in the EU continues to grow steadily. In the third quarter of 2025, rental rates in the European Union increased by 3.1% year on year and by 0.9% compared to the second quarter. Over the long term, from 2015 to the third quarter of 2025, housing prices in the EU rose by a total of 63.6%, while rents increased by 21.1%.
In Cyprus, this is strengthening interest in investments in rental properties, especially in Nicosia and university districts, where demand consistently exceeds supply.
What this means for buyers and investors
Price stabilization makes Cyprus one of the few markets in Europe where a purchase can be planned without the pressure of rapid growth. For investors, this is a period of strategic entry, when the cost per square meter remains predictable and rental yields begin to play a more prominent role. For families planning a relocation, this is a rare window of opportunity to lock in prices ahead of the next growth cycle, which analysts predict could begin as early as 2026 amid a recovery in mortgage demand and a new inflow of foreign buyers.