Quarter 1 of 2025 witnesses a significant jump in Cyprus' Housing Price Index: While apartment prices show a moderate increase, house prices exhibit a notable acceleration.
In a recent report by the Central Bank of Cyprus (CBC), it has been revealed that Cyprus's housing market experienced a notable shift in Q1 2025, with house prices rising faster than apartment prices. This diverging trend can be primarily attributed to shifting demand dynamics, particularly the influence of foreign buyers.
According to the report, house prices showed an accelerated annual growth of 5.6%, up from 4.5% in Q4 2024, while apartment price growth slowed to 3.5% annually. This marks the first time since 2008 that apartment price growth has lagged behind houses.
On a quarterly basis, house prices rose 1.8%, and apartment prices 1.4%, reinforcing this divergence. The Housing Price Index, which covers both houses and apartments, experienced a quarterly increase of 1.9%.
Data from the Department of Lands and Surveys indicates that the number of sale contracts increased across all districts from both domestic and foreign purchasers during Q1 2025. The CBC explicitly linked the rise in foreign buyer activity to the acceleration in price increases across both housing segments.
Regional variations also demonstrate different growth rates. Areas like Limassol experienced accelerating housing price growth (5.7%), while others like Larnaca, Paphos, and Famagusta showed decelerating but still strong growth. In Larnaca, house prices showed a slower annual growth rate, but apartment prices decelerated as well.
In Limassol, house prices showed a notable acceleration to 9.1% annually, while Famagusta continued to grow around 8%. Paphos and Larnaca showed slower growth, and Nicosia recorded a decrease of -1.2%. In Paphos, house prices showed a slower annual growth rate, but apartment prices posted an annual increase.
The total number of sale contracts showed growth among both domestic and foreign buyers in Q1 2025. Building permit data shows a slight increase in construction activity in 2024 compared to 2023, and the European Commission's Economic Sentiment Surveys (March 2025) showed a positive diffusion index for construction activity for six consecutive quarters.
This diverging trend suggests that buyers—particularly foreigners—may currently favor houses over apartments, pushing prices higher in that segment. As the housing market continues to evolve, it will be interesting to see how these trends develop in the coming quarters.
- The housing market in Cyprus witnessed a significant shift in Q1 2025, with house prices rising faster than apartment prices, as reported by the Central Bank of Cyprus.
- House prices in Cyprus showed an accelerated annual growth of 5.6% in Q1 2025, while apartment price growth slowed to 3.5%.
- The data from the Department of Lands and Surveys indicates that the number of sale contracts increased across all districts, with both domestic and foreign buyers being active in Q1 2025.
- Regional variations were noted in the housing market of Cyprus, with areas like Limassol experiencing accelerated growth (5.7%), while others like Larnaca, Paphos, and Famagusta showed decelerating growth.
- In the finance and investing sphere, the total number of sale contracts showed growth among both domestic and foreign buyers in Q1 2025, and the European Commission's Economic Sentiment Surveys showed a positive diffusion index for construction activity for six consecutive quarters.
- The diverging trend of house prices over apartment prices may suggest a preference among buyers, particularly foreigners, for houses, potentially contributing to further price increases in that segment.
