Cyprus property prices have smashed through previous peaks, with the apartment price index reaching its highest level on record in the fourth quarter of 2025, exceeding the previous record set in 2008, just before the property bubble burst.
At a time when the European Union has warned of a mounting “social crisis” in housing, the cost of buying a home in Cyprus continues to spiral, with growing numbers of young people in particular, finding themselves priced out of the market.
The Central Bank’s Residential Property Price Index (RPPI) shows the apartment price index has climbed to 123.9 points, marking a dramatic recovery from the post-crisis slump that saw prices tumble following the financial crisis in 2013. At the lowest point of the downturn, the RPPI fell to 73.4 points in 2013 and 77.8 points in 2014.
Today, the market sits roughly 60% above those lows, underlining the scale of the rebound.
Property prices jump 74.5% in a decade
The latest RPPI figures reveal just how rapidly the market has accelerated. Apartment prices rose to 123.9 points in the final quarter of 2025, up from 112.3 points a year earlier, an annual increase of 10.32%.
Over the past ten years, prices have surged by 74.5%, highlighting the growing challenge facing local buyers who find themselves unable to buy a home.
While construction activity has picked up, supply continues to lag demand, helping to push prices ever higher.
Foreign buyers and rising costs drive the boom
A combination of limited housing supply, improved earnings in some sectors and strong demand from overseas investors has fuelled the surge in property prices.
Rising construction costs have added further pressure. Developers continue to face increased prices for building materials, pushing up the cost of new homes and reinforcing the upward trend in market prices.
Demand remains strong from domestic buyers and international purchasers seeking investment opportunities or properties for short-term rental.
Tourism growth and the continued expansion of higher education have also helped sustain activity across the residential property sector.
Limassol and Larnaca lead the charge
Limassol continues to dominate the market, recording the highest apartment price index in the country at 150.1 points in the fourth quarter of 2025. Prices in the coastal city have skyrocketed by 102.7% over the past decade.
After several years of subdued performance between 2013 and 2017, prices in Limassol have followed a steady upward trajectory since 2019, culminating in a new record high.
Larnaca is not far behind, with apartment prices reaching 150 points; a substantial rise of around 102% over the last ten years.
Nicosia has seen more moderate growth, with the apartment price index reaching 99 points in Q4 2025; a ten-year increase of 29.24% and bringing prices close to levels last seen in 2010.
Paphos has experienced strong gains, with apartment prices climbing to 126.5 points, up 97.04% over a decade.
Famagusta recorded a smaller but still notable increase, with the apartment price index reaching 81.9 points; a rise of 38.5% compared with 2015 levels.
House prices also climb steadily
The upward trend extends beyond apartments. The overall house price index rose to 94.2 points in the fourth quarter of 2025, marking a 24.60% increase over ten years.
Limassol recorded house prices at 107 points, up 38.60% over the decade, while Nicosia saw more modest growth, with house prices reaching 80.1 points up 5.67% over the same period.
Larnaca’s house price index reached 88.9 points, representing a ten-year rise of 23.64%.
Paphos saw house prices climb to 108 points, up 36.19%, while Famagusta recorded house prices at 95.9 points, an increase of 33.56% compared with 2015.
Lower interest rates add fuel to the market
According to the Central Bank, the continued strength of the property sector is partly linked to the gradual easing of European Central Bank monetary policy since mid-2024.
Interest rates have converged with the Eurozone median and, since May 2025, have remained consistently below it, supporting mortgage lending and encouraging borrowing.
Demand for owner-occupied homes, buy-to-let investments and short-term rental properties remains strong, helping to sustain momentum across the market.
Despite increased building activity, supply still struggles to keep pace with demand, which suggests upward pressure on prices may continue.
