The Cyprus property market maintained a strong upward trajectory in the third quarter of 2025, with the Residential Property Price Index (RPPI) recording a 5% annual increase, accelerating slightly from the 4.7% rise seen in the second quarter. Data published by the Central Bank of Cyprus (CBC) highlights a clear divergence in property type, with apartments becoming the primary growth engine amid a notable slowdown in house price appreciation.
Apartment Boom vs. House Slowdown
The overall quarterly RPPI rise was 1.2% (down from 1.5% in Q2), a change heavily influenced by the relative performance of the two segments:
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Apartments: Prices accelerated sharply, showing an annual increase of 6.4%. This reflects a shift in buyer preference towards smaller units, likely driven by escalating construction costs.
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Houses: Price growth decelerated significantly, rising by only 2.6% annually. This trend was more dramatic in Nicosia, which recorded its fourth consecutive annual decline in house prices (-2.7%).
Regional Price Dynamics: The Coastal Leaderboard
All districts, except the capital, experienced robust apartment price growth, while the market for houses saw more mixed results:
| District | Overall Annual RPPI Change | Annual Apartment Price Change | Annual House Price Change |
| Пафос | +8.9% (Slowdown) | +10.5% (Acceleration) | +7.4% (Slowdown) |
| Ларнака | +7.3% (Acceleration) | +9.6% (Acceleration) | +4.2% (Stable) |
| Лимассол | +7.1% (Acceleration) | +5.0% (Acceleration) | +5.5% (Slowdown) |
| Никосия | -0.5% (Decrease) | +2.6% (Stable) | -2.7% (Decline) |
| Фамагуста | -0.3% (Decrease) | +5.9% (Acceleration) | -1.6% (Decline) |
The most significant price acceleration was observed in the coastal cities of Limassol and Larnaca, while Nicosia and Famagusta saw marginal annual decreases in their overall index.
Demand Driven by Foreign Buyers and Cheaper Mortgages
Robust transaction volumes confirm high market demand, which continues to be fueled by both domestic and international buyers:
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Sales Contracts: Total property sales contracts filed increased by 8.9% year-on-year in Q3 2025 (4,444 transactions).
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Foreign Investment: Sales to foreign buyers grew by 9.3%, outpacing the 8.6% increase from local buyers.
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Paphos Focus: Paphos remains the international hotspot, with foreign nationals accounting for 68% of all transactions in the district.
Crucially, market activity is being supported by favorable credit conditions. The volume of new housing loans saw a substantial 24% annual increase in Q3 2025, buoyed by a sharp drop in mortgage costs. The average mortgage interest rate fell significantly to 3.03% in September 2025, down from 4.27% a year earlier.
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Supply Outlook: The number of approved building permits continues its positive trend, increasing by 4.6% in the first seven months of the year, signaling that supply will gradually expand in the medium term to meet sustained demand.
Source: Property News Cyprus