Apartment prices in Cyprus continued their sharp upward path in the final quarter of 2025, driving a broader acceleration in the country’s housing market, according to the Central Bank of Cyprus.
The bank’s latest House Price Index report shows that annual apartment price growth reached 9.6% during the fourth quarter, significantly outpacing the 3.4% increase recorded for houses. Overall, residential property prices rose by 7.1% year-on-year, up from 5% in the previous quarter.
This sustained growth reflects robust demand from both domestic and international buyers, coupled with rising construction costs and a gradual increase in housing supply.
Apartments led gains as quarterly momentum builds
On a quarterly basis, the general housing price index rose by 2.3% in Q4 2025, compared with a 1.2% increase in Q3. Apartments led the gains with a 3% quarterly rise, while house prices increased by 1.2%.
The figures underline a clear shift in market momentum, with apartments continuing to outperform other residential segments.
Regional trends show mixed performance
Price movements varied across Cyprus’ districts. Nicosia recorded a modest annual increase of 1%, returning to growth after a previous decline. Meanwhile, Limassol and Larnaca saw strong acceleration, with price rises of 9.9% and 8.3% respectively.
In Paphos, growth slowed to 7.6%, while Famagusta remained broadly stable compared with the same period a year earlier.
When broken down by property type, house prices declined in Nicosia for a fifth consecutive quarter, falling by 1.3% year-on-year. By contrast, apartment prices rose across all regions except Famagusta, where they fell by 4.1%.
Notably strong gains were recorded in Paphos (13.6%), Larnaca (12.2%), Limassol (9.3%) and Nicosia (3%).
Sales activity rises sharply
Transaction volumes also increased significantly, highlighting continued strength in demand. Data from the Department of Lands and Surveys show that property sales rose by 18.7% year-on-year in Q4 2025, reaching 4,941 transactions.
Sales to domestic buyers climbed by 15.3%, while foreign buyer activity surged by 23.9%, underlining Cyprus’ ongoing appeal to international investors.
Limassol recorded the highest number of transactions, followed by Nicosia, Larnaca and Paphos, with Famagusta posting the lowest figures.
Foreign buyers dominate in key regions
The composition of buyers varied significantly by district. Domestic purchasers accounted for 84% of transactions in Nicosia and 67% in Limassol. In Larnaca and Famagusta, local and foreign demand was broadly balanced.
However, Paphos remained heavily reliant on international buyers, who made up 68% of transactions in the district.
Supply and lending trends support growth
On the supply side, the number of approved building permits continued to rise throughout 2025, pointing to a gradual expansion in housing availability.
At the same time, lending to households for home purchases maintained a steady upward trend, reinforcing the market’s positive momentum.
Despite increasing supply, elevated construction costs and sustained demand pressures suggest that upward price trends, particularly in the apartment sector, are likely to persist in the near term.
