Cyprus’ residential property market continued its upward climb in the first quarter of 2025, with home values rising across the country and house prices outpacing apartment prices for the first time since 2008, according to the Central Bank of Cyprus (CBC).
Market Overview
The Residential Property Price Index (RPPI) rose by 1.9% quarter-on-quarter in Q1 2025—up sharply from a 0.4% rise in the previous quarter. This included a 1.8% increase in house prices and a 1.4% gain for apartments.
On a yearly basis, prices jumped 4.8% overall, with houses rising by 5.6%, while apartments saw a smaller 3.5% increase. This shift reflects changing buyer preferences and stronger demand for larger living spaces.
Buyer Activity Remains High
The CBC attributed the price gains to strong domestic and foreign demand, with sale contracts submitted across all districts showing a notable rise year-on-year. Foreign investors, in particular, remain active, adding upward pressure on prices—especially for detached homes.
Construction Steady but Moderate
On the supply side, building permit approvals—a reliable signal of future construction—registered a slight increase in 2024 compared to the previous year. Confidence in the construction sector remains intact, with the European Commission’s sentiment index for building activity staying positive for six consecutive quarters.
District-Level Performance
Price movements varied by region, with Limassol leading the charge, showing accelerated growth of 5.7%. Other highlights include:
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Paphos continued to post strong gains, despite a slight cooling, with annual growth at 12.9%.
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Larnaca recorded 5.9% annual growth, slightly slower than previous periods.
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Famagusta slowed to 7.3%, marking the sharpest deceleration.
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Nicosia remained flat, with a minimal increase of 0.7%.
Houses vs. Apartments
House Prices:
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Limassol surged ahead with a 9.1% annual increase, up from 5.1%.
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Paphos remained strong at 12.7%, while Larnaca slowed to 6%.
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Famagusta held steady near 8%, while Nicosia slipped into negative territory (-1.2%).
Apartment Prices:
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Limassol, Larnaca, and Famagusta saw slower growth at 2.6%, 7.1%, and 7.2% respectively.
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Meanwhile, Paphos surged with a 13.8% increase, and Nicosia edged up by 3.1%.
Outlook
Despite regional variations, the overall market remains resilient, driven by robust demand and a steady construction pipeline. With international buyers maintaining interest and key infrastructure projects moving forward, Cyprus’ property market is expected to sustain its momentum through the rest of 2025.
Source: Cyprus Property News