Apartment prices in Cyprus reached an all-time high in the second quarter of 2025, according to the latest Central Bank data series (MS Excel), which tracks the market back to 2006.
The new peak surpasses the previous record set in 2008, just before the real estate bubble burst during the Global Financial Crisis. Following that downturn, prices continued to decline and were hit again in 2013, when Cyprus experienced a deep economic crisis linked to bank failures, excessive property debt, and exposure to Greek sovereign risk.
Since the economic crisis, prices have gained their lost ground and, by Q2 2025, the Central Bank’s Residential Property Price Index had risen to 101.1 points. This is higher than its lowest level of 72.2 in Q2 2006, but still below the 2008 peak of 107.7.
A combination of limited new housing supply, rising incomes in certain population groups, and stronger foreign demand has accelerated price growth. This surge has stimulated new construction, but output remains insufficient to meet demand, while the rising cost of building materials continues to push prices higher for both domestic and international buyers.
Record high in apartment prices
In Q2 2025, the apartment price index climbed to 118.2 points, surpassing the previous record of 105.8 in Q4 2008, setting a new record high after 17 years.
Regional trends show significant variation:
- Limassol: 143 points, the highest level recorded, up 93% over the past decade. Prices have risen steadily since 2019.
- Nicosia: 4 points, just 2% below its 2010 peak.
- Larnaca: 6 points, doubling (+101%) in ten years.
- Paphos: 9 points, up nearly 99% over the decade.
- Famagusta: 8 points, an increase of 48% in ten years.
For houses, the index stands at 92.7 points, representing a 24% increase over the past decade. The strongest house price growth occurred in Paphos and Famagusta.
Property prices across Europe
Cyprus is part of a broader trend of rising housing costs across Europe. Eurostat data for Q2 2025 shows:
- Housing prices rose 1% year-on-year in the euro area and 5.4% in the EU.
- Compared with Q1 2025, prices increased 7% in the eurozone and 1.6% in the EU.
Portugal recorded the largest annual increase at +17.2%, followed by Bulgaria (+15.5%) and Hungary (+15.1%). Cyprus recorded a +1.0% annual increase. Finland was the only country to see a decline (-1.3%).
Quarter-on-quarter, only France and Belgium saw prices fall. The strongest gains were observed in Portugal, Luxembourg, and Croatia. Cyprus recorded a modest +0.2% quarterly increase.
