Cyprus house prices continue to rise in Q1 2025

The Residential Property Price Index (RPPI) compiled by the Central Bank of Cyprus (CBC) continued to record annual growth in the first quarter of 2025, with apartment price growth slowing and house price growth accelerating.

According to the CBC, the overall RPPI (covering houses and apartments) posted a quarterly increase of 1.9% in Q1 2025, compared to a 0.4% rise in the previous quarter. This reflected quarterly increases of 1.8% in house prices and 1.4% in apartment prices.

On an annual basis, the index rose by 4.8% in Q1 2025, up from 4.5% in Q4 2024. Detached houses saw an annual increase of 5.6%, accelerating from previous rates, while apartments recorded a slower annual increase of 3.5%. Notably, for the first time since 2008, the annual increase in apartment prices was lower than that of house prices.

Demand for real estate remained strong, as data from the Department of Lands and Surveys showed an annual increase in the number of sales contracts filed during Q1 2025, from both domestic and foreign buyers. Sales rose across all districts.

Regarding supply, building permits — a leading indicator of construction activity — recorded a slight increase in 2024 compared to 2023. Similarly, the European Commission’s Economic Sentiment Surveys (March 2025) indicated that the construction activity index remained positive for the past six quarters.

Price changes by district

In terms of annual changes in overall residential property prices by district, prices accelerated only in Limassol (5.7%), while growth slowed in Larnaca (+5.9%), Paphos (+12.9%), and Famagusta (7.3%), with Famagusta showing the largest deceleration among the three.

In Nicosia, the annual price change remained steady at 0.7%.

For houses, annual price growth was particularly strong in Limassol (9.1%, up from 5.1%) and remained high in Famagusta (around 8%). Paphos saw a slowdown to 12.7%, while Larnaca recorded a more moderate slowdown to 6%. Nicosia saw an annual decrease of -1.2%.

For apartments, annual price growth decelerated in Limassol (2.6%), Larnaca (7.1%), and Famagusta (7.2%), while it accelerated in Nicosia (3.1%) and Paphos (13.8%).

(Source: CNA)