Eurostat data, residential property prices in Cyprus demonstrated a rare stability in the European Union in the fourth quarter of 2025. While most EU member states saw property prices rise, Cyprus was the only country to record a flat price change compared to the previous quarter.
On average, residential property prices in the eurozone increased by 5.1% year-on-year. Across the EU as a whole, the increase was even more pronounced, reaching 5.5%. The fastest-growing countries were Hungary (+21.2%), Portugal (+18.9%), and Croatia (+16.1%). The only country to record a year-on-year price decline was Finland (-3.1%).
On a quarterly basis (Q4 to Q3 2025), prices in the EU increased by 0.8%. Against this backdrop, Cyprus’s performance stands out: while Slovenia and Portugal saw strong growth and France and Estonia saw declines, prices for one-, two- , and three-bedroom properties in the Cypriot market remained unchanged.
Despite short-term price stability, residential rental prices continue to rise. Across the EU as a whole, rents increased by 3.2% year-on-year. In Cyprus, the rental index reached 130.60 in December 2025, significantly above the EU average of 121.87.
Data for the final months of 2025 confirms a steady upward trend in rental rates in every area of the island:
- September : 129.77 ;
- October : 130.14 ;
- November : 130.21 ;
- December : 130.60.
Between 2015 and the third quarter of 2025, residential property prices in the EU increased by 64.9%, while rents rose by 21.8%. Across 25 EU countries, purchase prices rose faster than rental rates. The most dramatic price increase was recorded in Hungary, where property prices increased by 290%.
The current situation in Cyprus reflects the pan-European problem of property affordability. Even with the stabilization of prices for one-, two- , and three-bedroom properties in the fourth quarter, continued rent increases are creating additional pressure on consumers in every region of the country. The gap in dynamics between the purchase and sale and rental markets highlights the complexity of the current economic situation in the residential real estate sector .
