Residential property price index up 4.7% y-o-y in Q2
CBC data show an accelerating increase for apartments and a slowdown for houses
An annual increase of 4.7% was recorded in the Residential Property Price Index during the second quarter of 2025, according to data published by the Central Bank of Cyprus (CBC).
The data showed an accelerating increase in the Property Price Index for apartments and a slowdown in the increase in the Property Price Index of Houses.
Regarding real estate demand, data from the Department of Lands and Surveys (DLS) show that the total number of sale contracts during the second quarter of 2025 registered an annual increase, both from domestic and foreign buyers. The total number of sale contracts recorded an annual increase in all districts.
In terms of real estate supply, the Central Bank notes that building permit data, which serve as a leading indicator of construction activity, increased between January and April 2025 compared to the corresponding period of 2024.
The European Commission’s Economic Sentiment Surveys (June 2025) also indicate a gradual increase in supply, with the construction activity balance indicator for the previous three months remaining positive for the past seven quarters.
In detail, the overall Residential Property Price Index (houses and apartments) recorded a quarterly increase of 1.5% in Q2 2025, compared with an increase of 1.9% in Q1 2025. According to the Central Bank, this resulted from an accelerating quarterly rise of 3.1% in apartment prices, partly offset by a quarterly decline of -0.1% in house prices.
On an annual basis, housing prices increased by 4.7% in Q2 2025, following a 4.8% increase in Q1 2025. Apartment prices increased 5.3%, while house prices increased slower by 3.4% during the period under review.
Price changes by district
Regarding annual changes in the overall housing price indices by district, only Limassol recorded an acceleration in the growth rate of the index (6.8%), while Nicosia, Larnaca, Paphos, and Famagusta recorded slower growth rates (0.1%, 5.8%, 9.4%, and 4.9%, respectively).
By type of property, an annual slowdown in house prices was observed across all districts except Nicosia, where a decline was recorded.
The House Price Index in Nicosia shows an annual decrease of -1.6% for the third consecutive quarter. The districts of Limassol, Larnaca, Paphos, and Famagusta recorded slower annual increases of 6%, 4.2%, 9.8%, and 5.7%, respectively.
On an annual basis, apartment prices recorded slower increases in Nicosia, Paphos, and Famagusta (2.6%, 8%, and 4.5%, respectively), while in Limassol and Larnaca they accelerated to 4.8% and 8.2%, respectively.
Changes in other indicators and real estate market data
Other real estate market indicators continued to reflect positive developments in demand during Q2 2025, according to CBC. According to DLS data, sale contracts (for all types of property) recorded an annual increase of 16.1% in Q2 2025 (4,592 compared with 3,956 in Q2 2024).
The increase in sale contracts came from both domestic and foreign buyers. Specifically, during the quarter under review, the number of properties sold to domestic buyers increased annually by 15.1% (2,875 compared with 2,498 in Q2 2024), while the number of properties sold to foreign buyers rose by 17.8% (1,717 compared with 1,458 in Q2 2024).
By district, most transactions were recorded in Limassol (1,430), followed by Nicosia (1,078), Larnaca (1,038), and Paphos (824), with Famagusta (222) showing the lowest number of transactions.
As for the share of domestic buyers, in the Nicosia, Limassol, Larnaca, and Famagusta districts, it exceeds 50%, while in Paphos, foreign buyers have a share of 60%.
According to the latest Monetary and Financial Statistics of the Central Bank, the volume of new lending recorded a significant annual increase of 22.2% (€353.5 million in Q2 2025 compared with €289.3 million in Q2 2024).
The same statistics show that the average mortgage rate decreased to 3.85% in Q2 2025, compared with 4.58% in Q2 2024, partly supporting both demand developments and the gradual increase in housing supply.
According to the CBC’s Bank Lending Survey (July 2025), interest in obtaining loans increased during Q2 2025, while lending criteria remained equally strict as in the previous quarter.
Regarding housing supply, based on monthly data from the Statistical Service cited by the Central Bank, the number of residential units for which building permits were issued, a leading indicator of construction activity, recorded an annual increase of 12.1% during January–April 2025 (from 3,854 units in Jan–Apr 2024 to 4,321 units in the same period of 2025). As a result, a gradual increase in the supply of housing units is expected in the medium term.
According to data from the European Commission’s Economic Sentiment Surveys (June 2025), the construction activity balance indicator for the past three months remained positive for the seventh consecutive quarter during Q2 2025 (4%). This aligns with the aforementioned gradual increase in supply.
The Central Bank also notes that the Construction Materials Price Index, published by the Statistical Service, recorded a marginal annual increase of 1.4% in Q2 2025, remaining at historically high levels in recent years due to geopolitical developments and supply chain disruptions.
Finally, the European Commission’s Economic Sentiment Survey (June 2025) expectations index for property prices over the next three months continues to show a slowing trend in housing prices, standing at 22.2 in Q2 2025, compared with 62.8 in the same period last year. According to the Central Bank, this suggests that a smaller share of respondents expect property price increases in Cyprus over the next three months.
