Key Highlights:

• Quarterly Growth:
  • RPPI rose by 1.9% in Q1 2025 (vs. +0.4% in Q4 2024).
  • House prices increased 1.8%, apartments 1.4%.
• Annual Growth:
  • Overall property prices up 4.8% year-on-year.
  • Houses rose 5.6% (accelerated from 4.6% in Q4 2024).
  • Apartments rose 3.5% (slowed from 5.5%).
  • For the first time since 2008, houses outpaced apartments in annual growth.
• Regional Trends:
  • Limassol: +5.7% annual growth.
  • Larnaca: +5.9% (decelerated).
  • Paphos: +12.9% (still high, but slowing).
  • Famagusta: +7.3% (sharp deceleration).
  • Nicosia: stable at +0.7%.
  • Apartment prices fell behind house prices in most districts except Paphos (+13.8%).
• Demand:
  • Total sales contracts +15% YoY (4,137 vs. 3,597).
  • Local buyers: +14.9%.
  • Foreign buyers: +15.2% (notably strong in Paphos & Famagusta).
• Supply:
  • Building permits for residential units +2.6% in 2024.
  • Gradual increase in supply expected.
  • Construction activity index remained positive for six consecutive quarters.
• Financing Conditions:
  • New housing loans +19.4% (€284m).
  • Average mortgage rates dropped to 4.53% (from 5.05% in Q4 2024).
• Market Outlook:
  • Price expectations for the next quarter show deceleration.
  • Construction material costs stabilized (+1.1% YoY).
  • Market supported by strong demand but facing slower apartment growth and a gradual increase in supply.

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