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This week, the Central Bank of Cyprus released its Residential Property Price Index for Q3 2025 and we look at how prices are moving, where demand is concentrating, how financing conditions are influencing the market, and which districts are gaining momentum.
At KIKLON Partners, our goal is to translate hard data into clear insights that help investors and decision makers understand what is really happening on the ground.
Source: Residential Price Index – CBC – Q3 2025
Here are the 20+1 key takeaways:
1. Prices in Cyprus are still going up overall.
The overall index is up 5.0% compared to last year, so the market is still moving forward. But the important bit is that not every area and not every property type is rising at the same pace anymore.
2. Apartments are the main reason prices are rising.
Apartment prices rose 6.4% year on year, while house prices rose only 2.6%. That usually tells you where people are actually buying, and where rental demand is strongest.3. The market is still rising quarter to quarter, just a little slower.
Prices increased 1.2% from the previous quarter, slightly less than the 1.5% increase the quarter before. This is the phase where buyers start being more careful and sellers cannot assume they can name any price.4. Larnaca is one of the strongest districts right now.
Larnaca is up 7.3% year on year on the overall index, which places it near the top nationally. In simple terms, it is not only active, it is one of the main drivers of the market at the moment.5. Larnaca apartments are moving fast.
Apartments in Larnaca rose 9.6% year on year, which is a strong pace. When apartments rise like this, it is usually because demand is broad, meaning locals, expats, and investors are all competing for similar types of property.6. Since 2023, apartment prices in Larnaca are up about 27.4%.
The index for Larnaca apartments moved from 91.6 in 2023 to 116.7 by Q3 2025, which is roughly a 27.4% increase. That is a big jump in two years and it explains why many buyers feel the market has become more competitive in Larnaca.7. Larnaca houses are rising too, just not as aggressively.
Houses in Larnaca are up 4.2% year on year. That can be good news for buyers who want more space, because it suggests the house market is growing but not as hot as as apartments.8. In Larnaca, apartments and houses are telling two different stories.
Larnaca apartments are well above the old baseline, while houses are still below it on the index. That usually means apartments are where the pressure and demand sit, and houses are where good deals can still exist if you choose carefully.9. Larnaca still has some runway compared to districts that already “fully re priced”.
The overall Larnaca index is still below 100 on the 2010 baseline, while Limassol is far above it. This does not mean Larnaca is cheap, but it does mean it has not moved as far on the long term scale as some other districts.10. Limassol is still the busiest market in Cyprus.
Limassol had the highest number of transactions in Q3 2025 at 1,431. When a market has higher volume, it usually means it is easier to buy and sell, but it can also mean you face more competition.11. Limassol is a premium market, so investors need to be more disciplined.
Limassol’s overall index sits at 120.7, well above the 2010 baseline. In plain terms, it has already gone through a major re pricing cycle, so the “easy upside” is less likely unless you buy something truly special or under market value.12. Paphos is the most international district.
In Paphos, foreign buyers make up 68% of transactions. That can support prices and demand, but it also means Paphos depends more on international appetite vs other districts.13. Paphos apartments are rising the fastest in Cyprus.
Apartment prices in Paphos are up 10.5% year on year. If you invest there, it is a strong momentum story, but you also need to be careful not to buy late at peak pricing.14. Nicosia shows why Cyprus is not one single market.
Nicosia is down 0.5% year on year on the overall index, and houses are down 2.7%. That does not make Nicosia “bad”, it just means it behaves more like a practical, local market where returns come more from rental yield and less from quick appreciation.15. Famagusta is mixed, and you have to look at the property type.
Overall the district is slightly down, houses are down 1.6%, but apartments are up 5.9%. This is a good reminder that sometimes the district headline hides where the real demand is.16. Transaction activity is rising, which supports the price story.
Total sale contracts rose 8.9% year on year to 4,444. When both transactions and prices rise together, it usually signals real demand, not just sellers pushing prices.17. Foreign demand is rising slightly faster than domestic demand.
Sales to foreign buyers rose 9.3% year on year, while domestic buyers rose 8.6%. The difference is small, but the direction matters because foreign demand often supports pricing and liquidity.18. Non EU buyers are a big part of the story, not just EU buyers.
The data shows non EU buyers exceed EU buyers in the totals. That suggests Cyprus is attracting interest beyond the usual EU driven buyer pool, which strengthens the “Cyprus as a long term base” narrative.19. In Larnaca specifically, non EU buyers clearly outweigh EU buyers.
Larnaca recorded 305 non EU buyers versus 102 EU buyers in Q3 2025. This is a strong signal that Larnaca is not only a local market, it is an international market in the making.20. The domestic category can still include foreign money, so foreign influence is likely higher than it looks.
Many purchases happen through Cyprus companies, and Cyprus resident buyers can include foreign shareholders behind those structures. So in practice, the true share of “foreign driven” demand can be higher than what the headline foreign percentage suggests.20+1. The big push behind a lot of this is cheaper and more available finance.
New housing lending rose 22% year on year for January to September 2025, and Q3 alone was up 24% year on year. At the same time, the average mortgage rate dropped to 3.03% in September 2025 from 4.27% a year earlier, which helps explain why demand is holding up.For more information visit: www.kiklonpartners.com
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