{"id":121254,"date":"2025-12-14T09:02:13","date_gmt":"2025-12-14T07:02:13","guid":{"rendered":"https:\/\/www.lamaisonestates.com\/?p=121254"},"modified":"2025-12-14T09:02:13","modified_gmt":"2025-12-14T07:02:13","slug":"apartment-prices-drive-5-annual-surge-in-cyprus-housing-market-says-central-bank","status":"publish","type":"post","link":"https:\/\/lamaisonestates.com\/he\/apartment-prices-drive-5-annual-surge-in-cyprus-housing-market-says-central-bank\/","title":{"rendered":"Apartment Prices Drive 5% Annual Surge in Cyprus Housing Market, Says Central Bank"},"content":{"rendered":"<p data-path-to-node=\"2\">The Cyprus property market maintained a strong upward trajectory in the third quarter of 2025, with the Residential Property Price Index (RPPI) recording a 5% annual increase, accelerating slightly from the 4.7% rise seen in the second quarter. Data published by the Central Bank of Cyprus (CBC) highlights a clear divergence in property type, with apartments becoming the primary growth engine amid a notable slowdown in house price appreciation.<\/p>\n<h3 data-path-to-node=\"4\"><b>Apartment Boom vs. House Slowdown<\/b><\/h3>\n<p data-path-to-node=\"5\">The overall quarterly RPPI rise was 1.2% (down from 1.5% in Q2), a change heavily influenced by the relative performance of the two segments:<\/p>\n<ul data-path-to-node=\"6\">\n<li>\n<p data-path-to-node=\"6,0,0\"><b>Apartments:<\/b> Prices accelerated sharply, showing an annual increase of 6.4%. This reflects a shift in buyer preference towards smaller units, likely driven by escalating construction costs.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"6,1,0\"><b>Houses:<\/b> Price growth decelerated significantly, rising by only 2.6% annually. This trend was more dramatic in Nicosia, which recorded its fourth consecutive annual decline in house prices (-2.7%).<\/p>\n<\/li>\n<\/ul>\n<h3 data-path-to-node=\"8\"><b>Regional Price Dynamics: The Coastal Leaderboard<\/b><\/h3>\n<p data-path-to-node=\"9\">All districts, except the capital, experienced robust apartment price growth, while the market for houses saw more mixed results:<\/p>\n<table data-path-to-node=\"10\">\n<thead>\n<tr>\n<td><strong>District<\/strong><\/td>\n<td><strong>Overall Annual RPPI Change<\/strong><\/td>\n<td><strong>Annual Apartment Price Change<\/strong><\/td>\n<td><strong>Annual House Price Change<\/strong><\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><span data-path-to-node=\"10,1,0,0\"><b>\u05e4\u05d0\u05e4\u05d5\u05e1<\/b><\/span><\/td>\n<td>+8.9% (Slowdown)<\/td>\n<td>+10.5% (Acceleration)<\/td>\n<td><span data-path-to-node=\"10,1,3,0\">+7.4% (Slowdown)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,2,0,0\"><b>\u05dc\u05e8\u05e0\u05e7\u05d4<\/b><\/span><\/td>\n<td>+7.3% (Acceleration)<\/td>\n<td>+9.6% (Acceleration)<\/td>\n<td><span data-path-to-node=\"10,2,3,0\">+4.2% (Stable)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,3,0,0\"><b>\u05dc\u05d9\u05de\u05e1\u05d5\u05dc<\/b><\/span><\/td>\n<td>+7.1% (Acceleration)<\/td>\n<td>+5.0% (Acceleration)<\/td>\n<td><span data-path-to-node=\"10,3,3,0\">+5.5% (Slowdown)<\/span><\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,4,0,0\"><b>\u05e0\u05d9\u05e7\u05d5\u05e1\u05d9\u05d4<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,4,1,0\">-0.5% (Decrease)<\/span><\/td>\n<td><span data-path-to-node=\"10,4,2,0\">+2.6% (Stable)<\/span><\/td>\n<td>-2.7% (Decline)<\/td>\n<\/tr>\n<tr>\n<td><span data-path-to-node=\"10,5,0,0\"><b>\u05e4\u05de\u05d2\u05d5\u05e1\u05d8\u05d4<\/b><\/span><\/td>\n<td><span data-path-to-node=\"10,5,1,0\">-0.3% (Decrease)<\/span><\/td>\n<td><span data-path-to-node=\"10,5,2,0\">+5.9% (Acceleration)<\/span><\/td>\n<td><span data-path-to-node=\"10,5,3,0\">-1.6% (Decline)<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p data-path-to-node=\"11\">The most significant price acceleration was observed in the coastal cities of Limassol and Larnaca, while Nicosia and Famagusta saw marginal annual decreases in their overall index.<\/p>\n<h3 data-path-to-node=\"13\"><b>Demand Driven by Foreign Buyers and Cheaper Mortgages<\/b><\/h3>\n<p data-path-to-node=\"14\">Robust transaction volumes confirm high market demand, which continues to be fueled by both domestic and international buyers:<\/p>\n<ul data-path-to-node=\"15\">\n<li>\n<p data-path-to-node=\"15,0,0\"><b>Sales Contracts:<\/b> Total property sales contracts filed increased by 8.9% year-on-year in Q3 2025 (4,444 transactions).<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"15,1,0\"><b>Foreign Investment:<\/b> Sales to foreign buyers grew by 9.3%, outpacing the 8.6% increase from local buyers.<\/p>\n<\/li>\n<li>\n<p data-path-to-node=\"15,2,0\"><b>Paphos Focus:<\/b> Paphos remains the international hotspot, with foreign nationals accounting for 68% of all transactions in the district.<\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"16\">Crucially, market activity is being supported by favorable credit conditions. The volume of new housing loans saw a substantial 24% annual increase in Q3 2025, buoyed by a sharp drop in mortgage costs. The average mortgage interest rate fell significantly to 3.03% in September 2025, down from 4.27% a year earlier.<\/p>\n<ul data-path-to-node=\"17\">\n<li>\n<p data-path-to-node=\"17,0,0\"><b>Supply Outlook:<\/b> The number of approved building permits continues its positive trend, increasing by 4.6% in the first seven months of the year, signaling that supply will gradually expand in the medium term to meet sustained demand.<\/p>\n<\/li>\n<\/ul>\n<p data-path-to-node=\"18\"><em>Source: Property News Cyprus<\/em><\/p>","protected":false},"excerpt":{"rendered":"<p>The Cyprus property market maintained a strong upward trajectory in the third quarter of 2025, with the Residential Property Price Index (RPPI) recording a 5% annual increase, accelerating slightly from the 4.7% rise seen in the second quarter. Data published by the Central Bank of Cyprus (CBC) highlights a clear divergence in property type, with [&hellip;]<\/p>","protected":false},"author":9,"featured_media":121255,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[211],"tags":[],"_links":{"self":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121254"}],"collection":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/comments?post=121254"}],"version-history":[{"count":1,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121254\/revisions"}],"predecessor-version":[{"id":121256,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/posts\/121254\/revisions\/121256"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media\/121255"}],"wp:attachment":[{"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/media?parent=121254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/categories?post=121254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lamaisonestates.com\/he\/wp-json\/wp\/v2\/tags?post=121254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}