The Cypriot housing market experienced a period of relative stability during the third quarter of 2025, according to the latest data from the Statistical Service. While long-term trends remain positive, the market showed signs of a minor cooling phase when compared to the preceding months.
Market Overview and Key Indices
Based on preliminary assessments, the House Price Index (HPI) for the third quarter of 2025 reached a level of 146.86 units. This represents a modest year-on-year increase of 0.1% compared to the third quarter of 2024.
However, on a short-term basis, the index saw a marginal decline of 0.3% relative to the second quarter of 2025. This suggests that while property values are holding steady against last year’s figures, the rapid growth seen in previous cycles has tapered off.
Segment Performance: New vs. Existing Dwellings
The data reveals a slight downward adjustment in both the new and existing housing sectors during this quarter. The index for newly constructed units was recorded at 164.28 units, down from 164.60 in the second quarter. Similarly, the existing units index fell to 134.75 units from the 135.29 units reported in Q2 2025.
| Property Segment | Q3 2025 Index (Units) | Q2 2025 Index (Units) | Quarterly Trend |
| Overall HPI | 146.86 | 147.24 (Revised) | ↓ 0.3% |
| New Housing | 164.28 | 164.60 | ↓ 0.19% |
| Existing Housing | 134.75 | 135.29 | ↓ 0.40% |
Source: The data above is based on preliminary estimates released by the Statistical Service and reported via Stockwatch.com.cy.
Analysis of the Trends
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Annual Stability: The 0.1% increase suggests that the market is currently in a “plateau” phase, maintaining the value gains achieved over the past year without significant upward pressure.
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Quarterly Cooling: The 0.3% dip from the second quarter highlights a minor correction, potentially driven by shifts in buyer demand or the impact of current interest rate environments on borrowing capacity.
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Sector Comparison: New housing continues to command a significantly higher index value (164.28) compared to existing homes (134.75), reflecting the premium placed on modern construction and energy-efficient standards.
Source: Stockwatch.com.cy