Property prices in the European Union continue to rise actively, but Cyprus demonstrates its own distinct dynamics. According to Eurostat data, in the fourth quarter of 2025 housing prices in the eurozone increased by 5.1% year-on-year, and by 5.5% across the entire EU. In Cyprus, however, prices remained stable compared to the previous quarter, showing no change. This is a rare phenomenon, as in most EU countries housing continued to become more expensive. Only France and Estonia recorded slight declines of 0.7% and 0.3%, respectively. Finland was the only country to show an annual decrease in prices of 3.1%. Cyprus’s stability appears favorable compared to Hungary’s surge of 21.2% and Portugal’s growth of 18.9%, which are raising serious concerns about housing affordability for local residents.
Rent in Cyprus is rising faster than purchase prices
There are frequent complaints in Cyprus about high rental rates, which vary significantly by region. Limassol traditionally leads in rental costs, followed by Nicosia and Larnaca. Sale prices per square meter have also reached record levels in popular tourist areas. According to Eurostat, in the fourth quarter of 2025 rents in the EU increased by 3.2% year-on-year, which is noticeably slower than the growth in property purchase prices, which rose by 5.5%. However, the situation in Cyprus is different: rents continue to rise steadily, and the rental price index reached 130.6 points in December 2025 compared to the EU average of 121.87. This means that renting property in Cyprus is becoming increasingly expensive, while purchasing in the fourth quarter of 2025 was no more expensive than in the third quarter.
Ten-year trend
Between 2015 and 2025, housing prices in the EU increased by 64.9%, while rents rose by 21.8%. In Hungary, property prices skyrocketed by an astonishing 290% — nearly fourfold. Prices more than doubled in 12 countries, including Portugal (+180%) and Bulgaria (+157%). Against this backdrop, Cyprus showed moderate growth of 52.9%. This is higher than the EU average for rent but significantly lower than the highest increases in purchase prices across Europe. For the Cypriot market, this growth means that property remains relatively affordable compared to record-setting countries, but it is still becoming more expensive faster than incomes are rising.
When the property market peaks in Cyprus
An analysis of the average quarterly number of housing transactions between 2015 and 2025 shows that in Cyprus, as in Ireland, Bulgaria, Belgium, Luxembourg, the Netherlands, Spain, Austria, and Portugal, the peak in sales occurs in the fourth quarter. This is because many buyers aim to finalize deals before the end of the year for tax reasons, as well as due to increased demand from foreign investors who visit the island in autumn. The lowest number of transactions in Cyprus is observed in the first quarter. The winter months are traditionally considered the low season for both tourism and the real estate market. This seasonality has remained consistent throughout the decade.
What lies ahead for the Cyprus real estate market
The stability of prices in Cyprus in the fourth quarter of 2025, against the backdrop of EU-wide growth, may be temporary. Experts attribute this to market saturation after several years of strong growth, as well as buyer caution amid high inflation and interest rates. However, fundamental factors — a shortage of quality housing supply, strong demand from foreign investors, and the “golden visa” program — remain in place. Already in the first quarter of 2026, property sales in Cyprus increased by 14%, and in March alone the growth reached 18%. This may signal that the period of stability is ending and prices may begin to rise again.