Cyprus property prices continued to climb during the second quarter of 2025, with the Central Bank of Cyprus’ House Price Index (HPI) rising 1.5% compared with the previous quarter and by 4.7% year-on-year.
The growth was mainly driven by higher apartment prices, while house prices remained mostly stable.
Over the same period, the number of property sales rose by 16.1%, mortgage lending increased by 22.2%, and home loan interest rates fell to 3.85%, offering some relief to buyers and property developers.
Property market overview
During Q2 2025, the combined House Price Index for both houses and apartments rose 1.5% quarter-on-quarter, following a 1.9% rise in Q1.
The increase stemmed primarily from a 3.1% jump in apartment prices, while house prices slipped slightly by 0.1%.
Annually, the index rose 4.7%, slightly below the 4.8% recorded in the first quarter. Apartment prices grew 5.3% year-on-year, while house prices increased 3.4%. The general index stood at 101.1 points (base year: Q1 2010 = 100).
Regional trends
Only Limassol recorded a faster price increase, with an annual rise of 6.8%. Price growth slowed elsewhere: Nicosia (0.1%), Larnaca (5.8%), Paphos (9.4%), and Famagusta (4.9%).
For houses, prices slowed in all districts except Nicosia, where they fell 1.6% for the third consecutive quarter. Elsewhere, prices increased 6% in Limassol, 4.2% in Larnaca, 9.8% in Paphos, and 5.7% in Famagusta.
For apartments, annual growth accelerated in Limassol (4.8%) and Larnaca (8.2%), but eased in Nicosia (2.6%), Paphos (8%), and Famagusta (4.5%).
Rising demand in the property market
According to data from the Department of Lands and Surveys, demand for property surged in Q2, with 4,592 sale contracts registered in Q2 2025, a 16.1% increase from 3,956 a year earlier.
Domestic purchases rose 15.1% (2,875 vs 2,498), while foreign purchases increased 17.8% (1,717 vs 1,458).
Limassol led with 1,430 transactions, followed by Nicosia (1,078), Larnaca (1,038), Paphos (824), and Famagusta (222).
Domestic buyers accounted for over 50% of transactions in all districts except Paphos, where foreign buyers held a 60% share.
Lending and interest rates
According to Central Bank of Cyprus monetary and financial statistics, new lending volumes increased by 22.2% year-on-year, reaching €353.5 million in Q2 2025, up from €289.3 million the previous year.
The average mortgage rate fell to 3.85% from 4.58%, partially supporting both demand and supply growth.
The Bank Lending Survey (July 2025) reported stronger interest in borrowing, while lending criteria remained unchanged from the previous quarter.
Housing supply and construction
Data from the Cyprus Statistical Service indicated a rise in construction activity, with building permits for housing units up 12.1% between January–April 2025 compared to the same period in 2024 (4,321 vs 3,854 units).
The European Commission’s Economic Sentiment Survey (June 2025) showed a positive dispersion index for construction activity (+4%) for the seventh consecutive quarter, signalling sustained optimism in the sector.
Meanwhile, the construction materials price index recorded a mild annual increase of 1.4% in Q2 2025, remaining elevated due to geopolitical tensions and supply chain disruptions.
Market expectations
The European Commission’s Property Price Expectations Index (June 2025) fell sharply to 22.2 points from 62.8 a year earlier, suggesting fewer participants expect further price increases in the near term.
Overall, Q2 2025 data indicate that Cyprus’ housing market maintained its upward momentum, with differences by property type and region.
Demand strengthened from both local and foreign buyers, while supply is gradually increasing. Lower interest rates and stronger mortgage lending continue to support market activity, even as price growth expectations show signs of slowing.