The real estate market in Cyprus has reached a historic maximum. In the fourth quarter of 2025, the Apartment Price Index rose to 123.9 points, surpassing the previous peak recorded back in 2008 before the global financial crisis.
After a serious decline caused by the 2013 crisis, the market not only recovered but also grew significantly. At that time, the Index dropped to 73.4 points in 2013 and to 77.8 points in 2014. Today, the figures are about 60% higher than those minimum values, highlighting the scale of the recovery of the real estate sector on the island.
How quickly real estate is becoming more expensive
Over the past year, the Apartment Price Index increased from 112.3 to 123.9 points (+10.32%). Looking at a longer period, over ten years the growth reached an impressive 74.5%.
Such rapid price increases make housing purchases increasingly unaffordable for local residents. This is especially true for young people, who are increasingly unable to afford to buy their own apartment. Against this background, a growing housing crisis is already being discussed in the European Union.
Why prices continue to rise
One of the main reasons for the increase remains the housing shortage. Despite active construction, supply still lags behind demand. Additional pressure is created by high prices for building materials, which increases the cost of new projects.
Strong demand is supported by both local buyers and foreign investors, who view Cyprus as an attractive place for investment or purchasing property for rent. The development of tourism and the growing number of students also contribute to increased interest in housing, especially in large cities.
Leaders of the real estate market in Cyprus
Limassol remains the most expensive city in the country. In the fourth quarter of 2025, the Apartment Price Index here reached 150.1 points. Over ten years, prices increased by 102.7%, making this market one of the most dynamic. Larnaca has almost caught up with the leader: the Index reached 150 points, and the growth over the decade amounted to about 102%.
In Nicosia, growth was more moderate. Here, the Apartment Price Index reached 99 points, increasing by 29.24% over ten years and approaching the levels of 2010. Paphos shows steady growth — the Index rose to 126.5 points, which means an increase of 97.04%. In the free areas of Famagusta, growth is less sharp but still noticeable: the indicator reached 81.9 points, increasing by 38.5% compared to 2015.
House prices are also rising
The increase has affected not only apartments but also houses. In the fourth quarter of 2025, the overall House Price Index amounted to 94.2 points, which is 24.6% higher than the level a decade ago. In Limassol, house prices reached 107 points, increasing by 38.6%. In Nicosia, the growth was minimal — up to 80.1 points (+5.67%).
In Larnaca, the Index reached 88.9 points (+23.64%). In Paphos, the figure was 108 points, increasing by 36.19%, and in the free areas of Famagusta — 95.9 points (+33.56% compared to 2015).
Impact of rates and the economy
An additional factor in the growth was the policy of the European Central Bank. Since mid-2024, interest rates have been gradually decreasing and by May 2025 had fallen below the average level in the eurozone. This made mortgage loans more affordable and stimulated demand for housing purchases. In Cyprus, there remains strong interest both in buying homes for personal residence and in investment for rental, including short-term rentals for tourists.
Despite active construction, the market is still unable to meet demand. This means that pressure on prices will most likely persist. Experts note that Cyprus remains an attractive destination for investment due to its stable economy, mild climate, and growing tourist flow. However, for local residents, the issue of housing affordability is becoming increasingly pressing and may require additional measures from the state.