Source: Based on data from the Cyprus Statistical Service (CYSTAT) and originally reported by Cyprus Property Buyers.

A Cooling Market, or Just a Breather?

The latest figures from the Cyprus Statistical Service reveal that the Cyprus House Price Index (HPI) rose modestly in the second quarter of 2025—up just 0.2% compared to Q1 and 1.0% year-on-year.

This marks a notable slowdown compared to the 2.0–2.7% annual growth range seen throughout the previous year. While such moderation might sound like a concern, we believe it reflects a normalising market rather than a weakening one. After two years of strong post-pandemic recovery and rising foreign demand, the Cypriot housing sector seems to be entering a phase of measured stability.

Behind the Numbers: What the Index Really Tells Us

The House Price Index—standing at 113.99 points (base year 2015=100)—captures both new and existing residential properties across the areas controlled by the Republic of Cyprus. The methodology, based on data from the Department of Lands and Surveys, ensures that fluctuations in both older and newer housing segments are represented.

According to CYSTAT, “data are stratified into two strata; old and new dwellings. For each stratum, a rolling window hedonic regression model is used to calculate sub-indices.”

In simpler terms, this approach isolates the effects of market trends and property characteristics to provide a clear picture of real value changes.

Quarterly Evolution: The Market’s Pulse

Looking back at the past year, the pattern reveals an interesting rhythm:

• Q2 2024: +1.2%
• Q3 2024: +0.7%
• Q4 2024: –1.0%
• Q1 2025: +1.1%
• Q2 2025: +0.2%

In our opinion, this volatility mirrors a market that is adjusting to shifting conditions—rising construction costs, higher interest rates, and a slightly more cautious investor sentiment. Yet, even within this moderation, prices continue to inch upward, signaling underlying resilience.

Historical Context: Lessons from the Past

The long-term table from CYSTAT offers fascinating context. During the early 2010s, Cyprus experienced significant price contractions, with quarterly drops often exceeding 3%. Today’s small fluctuations—within a 1–2% range—illustrate how much more stable the market has become.

We think that this maturity reflects the diversification of property demand: not only from foreign buyers but also from local residents seeking secure, long-term investments. Moreover, the gradual integration of digital tools and platforms like Cyprus MLS is helping bring transparency and trust into pricing mechanisms—something that was previously missing in the market.

What This Means for Buyers, Sellers, and Agents

For buyers, this slowdown may actually be good news. A steadier price trajectory allows for more strategic purchases without the fear of being priced out. For sellers and developers, on the other hand, it reinforces the importance of differentiation—properties with strong rental potential, energy efficiency, or prime location will continue to outperform the average index.

As for agents and investors, we believe this data underlines the need to look beyond short-term price shifts and focus on market fundamentals: land scarcity, tourism strength, and Cyprus’s ongoing appeal as a safe investment hub within the EU.

In Our View: A Pause Before the Next Climb

From our perspective at RealtyHub, the Q2 2025 slowdown is not a sign of stagnation, but rather a recalibration. Every mature property market goes through such phases—pauses that allow for more sustainable growth to follow.

We think Cyprus is no exception. With infrastructural projects expanding, digital tools improving market transparency, and continued interest from Europe and the Middle East, the fundamentals remain solid.

In short: prices may have caught their breath, but the market’s heartbeat remains strong.

Why This Matters for Cyprus Real Estate

This data reinforces the need for accurate, real-time property information, something the Cyprus MLS (Multiple Listing Service) is uniquely positioned to deliver. With verified listings and shared market analytics, MLS platforms are helping professionals and investors make data-driven decisions—something crucial in an era when growth is subtle, but opportunities are plenty.