The Cyprus residential property market demonstrated steady growth in demand and prices in the third quarter of 2025, with Paphos firmly established as a key destination for foreign buyers. These findings follow from the Residential Property Price Index (RPPI) report published by the Central Bank of Cyprus (CBC).
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Increase in transactions with foreign and local buyers
In the third quarter of 2025, the total number of registered real estate purchase and sale agreements increased, driven by both foreign and local buyers. Sales to foreigners increased by 9.3% year-on-year, from 1,672 transactions in the third quarter of 2024 to 1,827 in the same period of 2025.
Transactions involving Cypriots also contributed significantly to the overall market dynamics, increasing by 8.6% from 2,409 to 2,617 transactions. Across all property types, the number of registered sales reached 4,444, up 8.9% from the same period last year.
Distribution of activity by district
The highest number of transactions was recorded in the Limassol district—1,431, followed by Nicosia (981), Larnaca (921), and Paphos (878). The least active district was Famagusta, where 233 transactions were registered.
However, the structure of demand varied significantly. In Paphos, 68% of buyers were foreigners, the highest percentage of all districts. In Nicosia, Limassol, Larnaca, and Famagusta, local buyers predominated, accounting for over 50%.
Dynamics of residential real estate prices
The overall residential property price index continued to rise, increasing by 5.0% year-on-year in Q3 2025, compared to 4.7% in Q2. However, the rate of growth varied across property types.
Apartment prices accelerated to 6.4%, while house prices slowed, increasing by 2.6%. On a quarterly basis, the overall index grew by 1.2%, down from the previous quarter’s 1.5%.
Price changes by district
The most significant acceleration in annual price growth was recorded in Limassol (7.1%) and Larnaca (7.3%). Paphos, despite a slowdown in price growth, demonstrated one of the highest rates—8.9% year-on-year.
In Nicosia and Famagusta, the overall price index fell by 0.5% and 0.3%, respectively. House prices in these areas also continued to decline, marking the fourth consecutive quarter of decline in Nicosia.
Apartment prices increased in almost all districts. The most significant increases were recorded in Paphos (10.5%) and Larnaca (9.6%), followed by Famagusta (5.9%) and Limassol (5.0%). In Nicosia, the rate of apartment price growth remained unchanged.
Demand, lending and supply
The positive dynamics of demand are largely due to a change in buyer preferences towards more compact residential properties, which is explained by high construction costs.
Lending activity confirms the market’s stability. From January to September 2025, the volume of new mortgage loans increased by 22% year-on-year to reach €972 million. In the third quarter alone, growth was 24% compared to the same period last year.
An additional factor supporting demand was the reduction in the average interest rate on housing loans to 3.03% in September 2025, compared to 4.27% a year earlier.
Supply outlook and construction factors
The number of residential properties receiving building permits increased by 4.6% between January and July 2025, indicating an expected gradual expansion of supply in the medium term.
Meanwhile, the building materials price index rose only 1.3% year-on-year, remaining high amid geopolitical instability and supply chain disruptions. House price expectations point to a further slowdown, reflecting a more cautious market sentiment.
