Residential property prices across Europe maintained a steady upward path in the fourth quarter of 2025, with prices in Cyprus holding steady amid broader market growth.
According to figures released by Eurostat, the statistical office of the European Union, residential property prices increased by 5.1% year-on-year in the euro area and 5.5% across the EU in Q4 2025. This represents a marginal increase from the third quarter of 2025, when annual price growth stood at 5.1% in the eurozone and 5.4% in the wider EU.
On a quarterly basis, property prices rose 0.6% in the euro area and 0.8% across the EU, signalling continued market stability despite ongoing economic pressures including interest rate adjustments and inflationary trends.
Cyprus residential property prices stable in final quarter
While many European markets continued to experience price growth in final quarter, Cyprus recorded no change (0.0%) between Q3 and Q4 2025, following volatility earlier in the year.
Despite this pause in quarterly movement, the Cyprus residential property market posted a healthy annual increase of 6.0%, outperforming several larger European economies and reinforcing the island’s reputation as a resilient Mediterranean property destination.
(Earlier in 2025, Cyprus recorded quarterly changes of +4.2% in Q1, -1.8% in Q2, and +3.7% in Q3, reflecting a market adjusting to shifting borrowing costs and sustained international demand.)
European residential property market trends
Across the EU, twenty-five Member States recorded annual house price growth in Q4 2025, while only Finland saw a decline (-3.1%).
The strongest annual increases were observed in:
- Hungary: +21.2%
- Portugal: +18.9%
- Croatia: +16.1%
Southern and Central European markets continued to outperform, supported by demand from international buyers, lifestyle relocations, and constrained housing supply.
Meanwhile, quarterly declines were recorded in France (-0.7%), Finland (-0.5%), and Estonia (-0.3%), suggesting some markets are beginning to stabilise after rapid post-pandemic expansion.
