Central Bank of Cyprus: Residential Property Price Index Up 5% Year-on-Year in the Third Quarter

In the third quarter of 2025, Cyprus’s residential property market continued its upward trajectory, maintaining steady growth amid strong demand. According to the Central Bank of Cyprus, the Residential Property Price Index increased by 5% year-on-year, slightly above the previous quarter’s 4,7%. Both local and foreign buyers remain highly active, especially in key regions such as Limassol, where property sales in Limassol continue to play a central role in market activity.

Apartment prices rose significantly faster than house prices, increasing by 6,4% compared with 2,6%. Quarter-on-quarter, the overall index grew by 1,2%. Most districts recorded an acceleration in apartment price growth, with the exception of Nicosia. House prices in Nicosia posted a year-on-year decline for the fourth consecutive quarter, while Famagusta also showed a decrease.

According to the Central Bank, rising prices reflect strong and persistent demand, as well as shifting buyer preferences toward smaller properties, driven partly by higher construction costs. Improved mortgage conditions also support demand: the volume of new housing loans rose by 22% year-on-year, while the average mortgage rate fell to 3,03%.

Data from the Department of Lands and Surveys shows that the number of property sales contracts increased by 8,9% year-on-year in Q3 2025. Limassol recorded the highest number of transactions — 1,431 — confirming the region’s popularity among both local buyers and foreign investors looking to buy property in Limassol. Paphos remained the district with the highest share of foreign buyers, accounting for around 68%.

Housing supply is also expanding gradually. The number of building permits issued between January and July 2025 increased by 4,6% year-on-year. The construction activity index has remained in positive territory for eight consecutive quarters, indicating stable confidence among developers and ongoing interest in the segment of property sales in Cyprus.

Regional price dynamics show that Limassol and Larnaca recorded some of the strongest increases, rising by 7,1% and 7,3% respectively. Paphos saw its growth rate ease to 8,9%, while Nicosia and Famagusta reported slight declines. Apartment prices accelerated in nearly all districts, particularly in Larnaca and Paphos.

The European Commission’s expectations suggest a possible slowdown in price growth over the next few months. However, the steady positive movement of the price index over the past three quarters points to a resilient and healthy market. For buyers and investors considering property sales in Limassol or other regions of Cyprus, current conditions remain favorable for informed investment decisions.