According to the published data, the apartment price index showed an acceleration to 5.3% , while house prices increased by 3.4% , showing a gradual slowdown.
In quarterly terms, the overall index grew by 1.5% , slightly below the first quarter’s growth rate of 1.9%. Apartment prices increased by 3.1% , while houses, on the other hand, showed a minimal decline of -0.1% .
The Land Department’s report records an increase in the number of transactions across all regions of the country. In the second quarter of 2025, 4,592 purchase and sale agreements were registered , representing a 16.1% increase compared to the same period in 2024.
An increase in property sales is observed among both Cypriot residents and foreign buyers:
- the number of transactions with local residents increased by 1% (2,875 versus 2,498 a year earlier);
- The number of transactions with foreigners increased by 8% (1,717 versus 1,458).
The largest number of operations were registered in the following areas:
- Limassol – 1,430
- Nicosia – 1,078
- Larnaca – 1,038 ,
- Paphos – 824 ,
- Famagusta – 222 .
In most areas, local buyers dominate property purchase transactions, but in Paphos, foreigners are the most frequent buyers of residential properties (around 60% of transactions).
Increase in the number of building permits
Data from the Statistical Service confirm positive trends in the construction sector. The number of approved residential construction permits increased by 12.1% from January to April 2025 (4,321 permits compared to 3,854 permits the year before).
Research by the European Commission also records an increase in construction activity, with the corresponding indicator remaining in positive territory for the seventh consecutive quarter .
Regarding the annual changes in the general residential property price indices by district, an acceleration in the growth rate of the relevant index was recorded only in Limassol (6.8%), while a slowdown in the growth rate of the house price index was recorded in Nicosia, Larnaca, Paphos and Famagusta (0.1%, 5.8%, 9.4% and 4.9% respectively).
Nicosia is particularly noteworthy, with the residential property price index declining for the third consecutive quarter, down 1.6% . The districts of Limassol, Larnaca, Paphos, and Famagusta recorded slow growth of 6%, 4.2%, 9.8%, and 5.7%, respectively.
Apartment prices also vary in their growth rates year-on-year:
- acceleration was recorded in Limassol (4.8%) and Larnaca (8.2%),
- slowdown in Nicosia (2.6%), Paphos (8%) and Famagusta (4.5%).
Mortgages and lending
Financial statistics from the Central Bank confirm growing interest in loans. New lending volume increased by 22.2% (to €353.5 million).
At the same time, the average mortgage rate fell to 3.85% , compared to 4.58% a year earlier . This is stimulating demand and supporting market activity.
The construction materials price index rose 1.4% in the second quarter of 2025, remaining elevated due to geopolitical events and supply chain disruptions.
The European Commission’s June 2025 Real Estate Price Expectations Index for the next three months continues to show a slowing trend in residential property price growth, falling in the second quarter of 2025 (22.2) compared to the same period last year (62.8). This means that a smaller share of market participants expect residential property prices to rise in the coming months.
