Filenews 27 October 2025 -by Theano Thiopoulou
The apartment price index broke all records in the second quarter of 2025, breaking the high level of 2008, when the real estate bubble began to form in the market, and five years later, in 2013, the banking crisis broke out. Fileleftheros' analysis shows that the apartment price index is at its highest point based on the historical data of the Central Bank.
Essentially, the real estate price index is up by 44% from the low recorded in 2006. The economic crisis that erupted after 2013 in Cyprus led to property prices falling and the house price index in 2014 fell to 77.8 points and to 73.4 points in 2013. The stagnation of the supply of new homes and the improvement of some income categories, but mainly the increase in demand from abroad, led to a very large rise in prices, resulting in, among other things, a significant resurgence of construction activity, which, however, does not seem to satisfy the existing demand. However, the sharp rise in the price of new properties was also largely contributed by the appreciation of building raw materials, which raise construction costs, combined with increased demand from both domestic and foreign buyers.
If we look in detail at what is happening in the apartments by analyzing the figures of the Central Bank, in the second quarter of 2025 the index is at 118.2 points, surpassing the high point of the fourth quarter of 2008 which was at 105.8 points, recording a new record, after 17 years. The dynamics in apartment prices are different in each province. The price index in Limassol, according to the Central Bank's index, was at 143 points in the second quarter of 2025, the highest index based on historical data. It is 93% higher than in 2015, i.e. within ten years. The apartment price index in Limassol shows a steady upward trend from 2019 onwards. On the contrary, the index declined in 2014 to 74.9 points from 82.8 points in 2013, in 2015 when it was 74 points, in 2016 it was 74.6 points and in 2017 it was 78.6 points. Since 2018, the apartment price index in Limassol has begun to gradually increase to reach the highest point so far in the second quarter of 2025.
In the province of Nicosia, the apartment price index in the second quarter of 2025 was at 97.4 points and is essentially 2% lower to reach the high point of 2010. In Larnaca the apartment price index is at 113.6 units, higher than in Nicosia and the most important thing is that it has increased by 101% in ten years. In the Paphos district, the apartment price index is at 114.9 units in the second quarter of 2025 and in a decade it has increased by 98.81%. In the province of Famagusta, the apartment price index in the second quarter of 2025 was at 88.8 points, the highest by 48.2% in a decade.
In homes, the price index is at 92.7 points, the highest by 24% in ten years. In Limassol, the price index is at 87.1 points in the second quarter of 2025, the highest 20.8% in ten years. In the province of Nicosia, the house price index in the second quarter of 2025 was at 79.7 points, up 5.54% in ten years. In the province of Larnaca it is at 87.1 points higher 20.83% in a decade, in the province of Paphos at 106.5 points increased by 33.12% in ten years and in the province of Famagusta it is at 95.4 points higher by 32.5% than in 2015.
Explosion in house prices in Europe
It is not only in Cyprus that property prices are rising but also in the rest of Europe, according to the latest Eurostat data for the second quarter of 2025. Specifically, in the eurozone the average increase reached 5.1%, while in the European Union 5.4% on an annual basis. Compared to the first quarter of 2025, prices rose by 1.7% in the euro area and 1.6% in the EU. the largest annual increase was recorded in Portugal (+17.2%), followed by Bulgaria (+15.5%) and Hungary (+15.1%). In contrast, only Finland recorded a decline, with a decrease of 1.3% year-on-year. On a quarterly basis, prices decreased only in France (-0.2%) and Belgium (-0.1%), while the largest increases were observed in Portugal (+4.7%), Luxembourg (+4.5%) and Croatia (+4.4%). Eurostat notes that for Greece there is no data available on house prices, and that data from the Bank of Greece were used to estimate the European aggregates.
