Cyprus property market: steady price growth and rising foreign demand
House and apartment prices rise in Cyprus in Q2 2025, while foreign sales surge. We analyse the implications for buyers, sellers, agents and investors.
Cyprus residential property prices continued to rise in the second quarter of 2025, though the overall pace eased slightly. The Central Bank of Cyprus’s Residential Property Price Index increased 4.7% year on year, compared with 4.8% in the previous quarter.
The national figure tells only part of the story. Apartment prices rose faster than house prices, and the pattern varied considerably between districts. For anyone comparing properties, the type and location of a home matter more than a single island-wide average.
Key Figures at a Glance
The residential price index rose 1.5% quarter on quarter in Q2 2025. Behind that increase, apartment prices climbed 3.1%, while house prices edged down 0.1%.
On an annual basis:
- All residential properties: +4.7%
- Apartments: +5.3%
- Houses: +3.4%
Annual growth in the overall index also differed by district. It was 6.8% in Limassol, 0.1% in Nicosia, 5.8% in Larnaca, 9.4% in Paphos, and 4.9% in Famagusta.
Sales activity remained strong. 4,592 sales contracts were recorded across all property types in Q2 2025, up 16.1% from a year earlier. Contracts involving local buyers rose 15.1%, while those involving foreign buyers rose 17.8%.
On the supply and financing side, permits approved for residential units increased 12.1% in January–April 2025 compared with the same period in 2024. New housing lending reached €353.5 million in Q2, while the average rate for floating-rate mortgages and loans fixed for up to one year fell to 3.85%.
What’s Behind the Numbers — and What to Watch
1. Apartments grew faster than houses
Apartment prices rose 5.3% year on year, compared with 3.4% for houses. The quarterly difference was sharper: apartments gained 3.1%, while houses recorded a small decline.
These figures establish a difference in price movement, but they do not identify a single cause. Buyer budgets, available stock, location, and the types of homes changing hands can all affect a segment. A small quarterly fall in the house index does not establish that the house market has reached saturation.
2. Both local and foreign buyer activity increased
The number of contracts involving foreign buyers rose 17.8% from Q2 2024, reaching 1,717. Contracts involving local buyers reached 2,875, an increase of 15.1%.
Foreign demand was especially prominent in Paphos, where foreign buyers accounted for 60% of the district’s sales contracts that quarter. These figures show who was active in the market; they do not, on their own, measure how much each buyer group contributed to price growth.
3. More homes received building permits
The number of residential units covered by approved building permits rose from 3,854 to 4,321 in January–April 2025. Permits point to potential future supply, although approved units do not become available immediately.
Construction material prices rose 1.4% year on year in Q2. That slower rate of increase does not mean building materials had become inexpensive: prices remained high relative to earlier periods.
4. District averages hide different property trends
Limassol was the only district where annual growth in the overall residential price index accelerated, reaching 6.8%. Paphos recorded the highest annual increase in the overall index, at 9.4%, but its rate of growth slowed compared with the previous period.
Property type changes the picture again. House prices in Nicosia fell 1.6% year on year, while apartment prices there rose 2.6%. Agents and buyers comparing homes should therefore look beyond a district-wide figure to the relevant property type and local area.
5. Mortgage conditions changed, but lending still requires scrutiny
The measured mortgage rate fell from 4.58% in Q2 2024 to 3.85% in Q2 2025. New housing lending also increased 22.2% year on year.
Lower average rates may support demand, but they do not mean every buyer can borrow on the same terms. Lending criteria remained strict during the quarter, and an individual offer depends on the borrower and the loan.
What This Means for MLS RealtyHub Users
A national price index provides context. A property decision needs a closer comparison.
Agents using MLS RealtyHub can narrow a search by location and property type, review the details of available listings, and prepare selections that match a client’s requirements. When discussing price, they should distinguish asking prices in listings from completed sale prices and from changes in a market index. Each answers a different question.
The Q2 2025 figures give agents a useful starting point for conversations about apartments, houses, and district differences. They work best alongside current property information and a clear understanding of the client’s budget and goals.
Cyprus’s residential market was still growing in Q2 2025, with stronger price gains for apartments and more sales contracts from both local and foreign buyers. The variation beneath those totals is the reason to examine each segment carefully before drawing conclusions about an individual property.
Frequently asked questions
How much did Cyprus residential property prices rise in Q2 2025?
The Central Bank of Cyprus’s residential price index rose 4.7% year on year and 1.5% quarter on quarter.
Did apartments and houses follow the same price trend?
No. Apartment prices rose 5.3% year on year, while house prices rose 3.4%. Quarter on quarter, apartments gained 3.1% and houses fell 0.1%.
Does a district’s price index show what an individual property is worth?
No. The index describes a broader price trend. An individual property also needs to be assessed by its location, condition, size, features, and relevant comparable properties.