The Central Bank of Cyprus (CBC) has released its Residential Property Price Index (RPPI) for the third quarter of 2025, confirming continued price growth across the Cyprus residential market, driven primarily by accelerating apartment price momentum, robust transaction volumes, and significantly improved financing conditions.

• Quarterly Growth:
  • The overall residential property price index rose by 1.2% quarter-on-quarter, compared to 1.5% in Q2 2025.
  • House prices increased by 0.4% on a quarterly basis.
  • Apartment prices recorded a decelerating quarterly increase of 1.7%, compared to 3.1% in Q2 2025.
• Annual Growth:
  • On an annual basis, the overall index increased by 5.0%, an acceleration from 4.7% in Q2 2025.
  • House prices grew by 2.6% year-on-year, a deceleration from 3.4% in the prior quarter.
  • Apartment prices accelerated to 6.4% annual growth, up from 5.3% in Q2 2025.
• Regional Trends:
  • Nicosia: The general index recorded a marginal annual decline of -0.5%; house prices fell -2.7% year-on-year — a fourth consecutive quarter of annual decline — while apartment prices held steady at 2.6% annual growth, unchanged from Q2.
  • Limassol: The general index grew 7.1% year-on-year; apartment prices increased 5.0% (accelerating) and house prices 5.5% (decelerating).
  • Larnaca: The general index rose 7.3% year-on-year; apartment prices accelerated to 9.6% and house prices remained steady at 4.2%, unchanged from the prior quarter.
  • Paphos: The general index recorded 8.9% annual growth, a deceleration from the prior quarter; apartment prices accelerated to 10.5% and house prices decelerated to 7.4%.
  • Famagusta: The general index posted a marginal annual decline of -0.3%; apartment prices increased 5.9% (accelerating) while house prices fell -1.6% year-on-year.
• Demand:
  • Total sales contracts across all property types reached 4,444 in Q3 2025, a year-on-year increase of 8.9% (from 4,081 in Q3 2024).
  • Local buyer transactions rose 8.6% year-on-year to 2,617 contracts.
  • Foreign buyer transactions increased 9.3% year-on-year to 1,827 contracts; Paphos recorded the highest foreign buyer share at 68% of all district transactions.
• Supply:
  • Residential building permits for the period January–July 2025 increased by 4.6% year-on-year, from 7,772 to 8,128 units, pointing to a gradual expansion of supply in the medium term.
  • The construction activity diffusion index remained positive for the eighth consecutive quarter at 12.5%, consistent with sustained construction momentum.
• Financing Conditions:
  • New housing loan volumes rose by 24% year-on-year in Q3 2025, with cumulative new lending for January–September 2025 reaching €972m compared to €796.8m in the same period of 2024 — a 22% annual increase.
  • The weighted average mortgage interest rate fell to 3.03% in September 2025, down from 4.27% in September 2024, significantly improving affordability conditions.
• Market Outlook:
  • The European Commission Business Survey price expectations index fell to 25.5 in Q3 2025 from 56.2 a year earlier, indicating fewer market participants expect price increases over the short term.
  • Despite moderating expectations, the Cyprus residential market continues to demonstrate broad-based resilience. Apartment prices are outperforming across virtually all districts — most strikingly in Paphos (+10.5%) and Larnaca (+9.6%) — underpinned by a structural preference shift toward smaller, lower-cost units in a high-construction-cost environment. The sharp drop in mortgage rates, from 4.27% to 3.03% within a year, is a significant tailwind for affordability and demand. Nicosia remains the key outlier, with house prices posting annual declines for a fourth consecutive quarter, suggesting selective softening in the capital's detached housing segment.

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