According to the latest report from the Central Bank of Cyprus (CBK), the residential property price index showed accelerated growth in the fourth quarter of 2025. This trend is driven by stable demand from both local and foreign buyers, a gradual increase in supply, and persistently high construction costs, which remain at historically high levels.
The overall index, covering both houses and apartments, increased by 2.3% in the fourth quarter of 2025 compared to the previous quarter (in the third quarter, growth was 1.2%). The main driver was accelerated apartment price growth, which increased by 3% over the quarter, while house prices increased by 1.2%.
Year-on-year, the overall residential property price index increased by 7.1% . The apartment segment showed the most significant growth, rising by 9.6% , while house prices increased by an average of 3.4% .
The real estate market situation varies significantly depending on the geographic location of properties. Each area demonstrated its own unique indicators:
- Limassol and Larnaca led the growth, with Limassol recording an acceleration in growth to 9% and Larnaca to 8.3% year-on-year.
- Nicosia returned to positive dynamics, showing growth of 1% after a decline in the previous period.
- In Paphos, growth slowed to 6% .
- In Famagusta, the index remained at the level of the fourth quarter of 2024.
An analysis of residential property types revealed the following features:
- In Limassol and Larnaca, house price growth increased to 6% and 4.5% , respectively. The Famagusta district recorded a 1.9% increase. In contrast, house prices in Nicosia have been declining for the fifth consecutive quarter, showing a year-on-year decline of -1.3% .
- Apartment prices grew at an accelerated pace in almost all regions. The highest growth was recorded in Paphos (+13.6%) and Larnaca (+12.2%). In Limassol, apartment prices increased by 9.3%, and in Nicosia, by 3% . The only exception was the district Famagusta , where apartment prices fell by -4.1% .
These statistics confirm that residential property in coastal areas remains the most in demand among investors, particularly when it comes to modern one-, two- and three -bedroom apartments, while inland regions are showing more moderate or negative dynamics in the detached house segment.
