The upward trend in Cypriot residential property prices continued into the first quarter of 2025, with an annual rise of 4.8% recorded across the board, according to the Central Bank of Cyprus (CBC).
Notably, this quarter marks the first time since 2008 that house prices have grown faster than apartment prices.
Key trends from Q1 2025
The overall Residential Property Price Index (houses and apartments) posted a quarter-on-quarter increase of 1.9%, up from just 0.4% in Q4 2024. This growth came from a 1.8% rise in house prices and a 1.4% increase in apartment prices.
On an annual basis, house prices surged by 5.6%, while apartment prices saw a more modest 3.5% rise, marking a clear divergence in growth patterns. It is the first time since the global financial crisis that annual growth in house prices has outpaced that of apartments.
Demand remains strong
The CBC reports that demand for property remains robust, with figures from the Department of Lands and Surveys showing a year-on-year increase in sale contract submissions from both local and foreign buyers across all districts in Cyprus during Q1 2025.
The growth in foreign buyer activity aligns with the accelerated increases in both house and apartment prices seen over the same period.
Supply side developments
On the supply front, building permits, a leading indicator of construction activity, showed a slight increase in 2024 compared to 2023. According to CBC analysis and data from the European Commission’s March 2025 Economic Sentiment Surveys, the index measuring recent construction activity has remained in positive territory for the past six consecutive quarters.
Price changes by districts
- Limassol was the only district to record accelerated price growth overall, rising to 5.7% year-on-year.
- Larnaca, Paphos, and Famagusta all saw a slowing of growth, with annual increases of 5.9%, 12.9%, and 7.3%, respectively. The slowdown was most pronounced in Famagusta district.
- Nicosia remained relatively stable, with an annual change of just 0.7%.
Houses
- Limassol stood out with 9.1% annual growth, up from 5.1% previously.
- Paphos saw a slight decline to 12.7%, and Larnaca to 6%.
- Famagusta maintained growth of around 8%.
- Nicosia, however, experienced a year-on-year decline of -1.2%.
Apartments
- Annual growth slowed in Limassol (2.6%), Larnaca (7.1%), and Famagusta (7.2%).
- In contrast, Nicosia and Paphos saw faster annual increases of 3.1% and 13.8%, respectively.
Outlook
While the pace of growth varies by district and property type, the overall market shows continued strength in both demand and pricing, particularly for houses. With foreign interest holding steady and construction activity gradually picking up, Cyprus’ residential property market is expected to remain resilient in the near term.
(Translated and summarised from the Greek article by the Cyprus News Agency)
