According to preliminary data from the Cyprus Statistical Service (Cystat), the island recorded a 2% increase in the House Price Index in the first quarter of 2025 compared to the same period last year. Following a slight decline at the end of 2024, the market is showing positive dynamics once again. Cystat experts say this indicates stability and a gradual recovery of the island's real estate sector after recent years of turbulence.
Cyprus's stable growth in real estate prices stands out against the backdrop of European indicators.
At the European Union level, 2024 was a turning point: for the first time since 2021, most countries recorded an increase in real estate transactions. According to Eurostat data, 13 out of 17 EU countries saw an increase in transactions compared to 2023. Meanwhile, housing prices in the EU increased by 5.7% year-on-year and by 1.4% compared to the previous quarter in the first quarter of 2025. Rents also rose, by 3.2% year-on-year and 0.9% quarter-on-quarter.
In Cyprus, housing prices rose 2% year-on-year and 1.1% quarter-on-quarter in the first quarter of 2025. For comparison, prices increased by 16.3% in Portugal, 15.1% in Bulgaria, 13.1% in Croatia, and 10.7% in the Netherlands. The highest quarterly growth rates were recorded in Hungary (+5.2%), Portugal (+4.8%), and Croatia (+4.5%).
From 2016 to 2021, housing prices outpaced inflation in almost all EU countries, with growth slowing in 2022 and 2023 and real prices declining. From 2023 to 2024, the market began to recover, with price growth exceeding inflation in most countries.
Where are rental prices rising the fastest?
In turn, rents in the EU are growing more steadily than purchase prices. Since 2010, the overall increase in rental rates in the EU has been 27.8%. The fastest-growing countries were Estonia (+220%), Lithuania (+184%), Hungary (+124%), and Ireland (+115%). Greece was the only exception, with rents in 2025 still 11% below 2010 levels despite the recovery.
Buyer activity is on the rise.
After declining in 2023, the number of transactions increased in most countries in 2024. Notable growth was particularly seen in Luxembourg (+47.1%), Hungary (+34.7%), and the Netherlands (+16.7%). Cyprus saw impressive growth of 31%, highlighting the high level of interest from local and foreign buyers alike. This signals favorable conditions for investors and homeowners, while tenants have reason to reconsider their strategic decisions.