Apartment prices across Cyprus surged to a new all-time high in the second quarter of 2025, breaking a 17-year-old record set in 2008. According to new data from the Central Bank, the apartment price index has been driven by a combination of limited housing supply, strong foreign demand, and rising construction costs.
A New Peak for Apartments
The Central Bank’s apartment price index reached 118.2 points in Q2 2025, surpassing the previous peak of 105.8 points recorded in the fourth quarter of 2008. This milestone marks a complete recovery for the apartment sector after the 2008 real estate bubble burst and the subsequent 2013 banking crisis.
Regional Hotspots: Limassol and Larnaca Lead Surge
The boom has been most dramatic in coastal cities over the past decade:
- Limassol: Remains the most expensive, with its index hitting 143 points, a staggering 93% rise in ten years.
- Larnaca: Has seen prices double (+101%) over the past decade.
- Paphos: Is just behind, with a 99% increase in the same period.
- Nicosia: Apartment prices are just 2% below their 2010 peak.
- Famagusta: Has seen a more modest, though still significant, 48% rise.
A Divergent Market: Apartments vs. Houses
This record-breaking performance is exclusive to the apartment market. The price index for houses tells a different story, standing at just 92.7 points.
While house prices have risen 24% in the last decade, they remain significantly below their pre-crisis levels. This split is why the overall Residential Property Price Index (which combines both houses and apartments) is at 101.1 points, still below its 2008 peak of 107.7.
Cyprus Remains Stable in Broader EU Context
Despite the sharp rise in apartment costs, Cyprus’s overall housing market remains one of the most stable in Europe. Eurostat data for Q2 2025 shows Cyprus’s annual housing price increase was just +1.0%.
This is far below the EU average of +5.4% and pales in comparison to hotspots like Portugal (+17.2%) and Bulgaria (+15.5%). Finland was the only EU nation to see an overall price decline.
Source: Cyprus Property News