Cyprus has seen a dramatic shift in the prices of newly built homes during the first quarter of 2025, according to an in-depth analysis by Landbank Analytics.
Drawing on data from sale contracts submitted to the Department of Lands and Surveys, the platform reveals key trends and regional disparities shaping the island’s residential property market in each if the island’s districts:
Nicosia: Surge in house prices, stability in apartments
The capital recorded the highest percentage increase in the average sale price of newly built houses, soaring by 35.5% from €304,000 in Q1 2024 to €412,000 in Q1 2025. However, this jump was largely skewed by a single luxury sale worth €2.7 million. When this outlier is excluded, the average stands at €313,000, marking a more modest 3% rise.
This growth reflects strong residential development, rising demand for new homes, and a wave of modern construction projects. Meanwhile, the average price of new apartments remained largely stable, inching up slightly from €189,000 to €191,000 — signalling a balanced market with steady demand in the capital.
Limassol: Diverging trends between houses and apartments
Limassol saw opposite movements in its housing market. The average price of new houses fell by 12.4%, dropping from €444,000 in Q1 2024 to €389,000 in Q1 2025. However, this decline is linked to three low-priced house sales. Without them, the average rises to €428,000 — a yearly decrease of only 3.6%, attributed to an influx of mid-range homes and market adjustments after previous high prices.
In contrast, new apartments rose sharply in value, with the average climbing 12.4% to €372,000, up from €331,000 in 2024. This reflects continued strong demand for high-value apartments in one of Cyprus’ most expensive property regions.
Larnaca: Growing demand pushes house prices up
Larnaca recorded a significant increase (21.5%) in the average price of new houses, rising from €320,000 to €389,000. This upward trend is driven by heightened interest and the development of higher-end residential projects, signalling the city’s growing appeal.
Conversely, the average price of newly built apartments dipped slightly by 2.1%, falling from €191,000 to €187,000 — a sign of a steady and balanced apartment market with stable supply and demand for mid-range properties.
Paphos: Luxury homes drive market growth
Paphos continues to shine as a magnet for international buyers and investors, particularly in the luxury housing segment. The average sale price of new houses rose 16.9%, reaching €693,000 — underscoring the district’s strength as a high-end residential hotspot.
However, the average price of new apartments fell by 10.3%, from €320,000 to €287,000. This drop likely reflects a shift in the types of apartments available and a market recalibration after a phase of intense growth.
Famagusta homes: Price falls across the board
In the free area of Famagusta, both housing categories saw year-on-year declines. The average price of new houses fell from €343,000 to €300,000, while the average for new apartments dropped from €201,000 to €178,000.
It’s important to note that these figures represent all sales within district boundaries, not just those in city centres — and the lower transaction volume may also be influencing these downward trends.
Key market takeaways
Andreas Christoforides, CEO of the Landbank Group, highlighted the importance of these emerging patterns:
“The trends in Cyprus’ new-build market are significant, especially as we move through a changing economic and financial environment, which is affecting both local and foreign demand,” he said.
He noted that the European Central Bank’s interest rate cuts are already stimulating the domestic market, giving local buyers renewed momentum.
Christoforides also outlined the regional dynamics:
- Paphos remains the leader for luxury homes.
- Limassol continues to dominate in premium apartment
- Nicosia is experiencing strong growth in houses and stability in apartments.
- Larnaca is emerging as a rising force in the housing market.
- Famagusta, despite lower average prices, reflects a quieter market due to a lower volume of transactions.
As Cyprus’ property market evolves, these trends underscore how economic shifts, buyer demographics, and regional development are reshaping the real estate landscape offering both opportunities and challenges for buyers, developers, and investors alike.
