Cyprus Central Bank Reports Q3 Housing Price Uptick Amid Robust Demand and Credit Expansion

by THEFUTURE.TEAM

December 11, 2025

Overview of Q3 Housing Market Trends

The Central Bank of Cyprus (Central Bank of Cyprus) has recorded a new rise in the House Price Index for the third quarter of 2025. This uptick highlights a dynamic market where apartment prices have accelerated while house prices demonstrate a notable slowdown. The overall picture is one of robust demand, a steady increase in supply, and continued credit expansion.

Differentiated Price Movements: Apartments Versus Houses

The House Price Index grew 5% year-over-year—up from 4.7% in the previous quarter—with a quarterly increase of 1.2% compared to 1.5% before. Detailed analysis reveals that apartment prices climbed by 1.7% quarter-over-quarter and 6.4% year-over-year, whereas house prices saw a modest rise of 0.4% quarterly and 2.6% annually. Regional variations further underscore market heterogeneity:

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Limassol: 7.1% increase in the overall index.
Larnaca: 7.3% increase.
Paphos: 8.9% increase, though at a slower pace.
Nicosia: A slight decline of 0.5%.
Ammochostos: A decrease of 0.3%.

Notably, Nicosia has experienced its fourth consecutive annual decline in house prices (-2.7%), with Ammochostos also recording a drop (-1.6%). Conversely, apartment prices have risen in every region except Nicosia—with quarterly gains of 5% in Limassol, 9.6% in Larnaca, 10.5% in Paphos, and 5.9% in Ammochostos.

Demand Dynamics and the Role of Foreign Buyers

Data from the Department of Cadastre and Cadastral Measurement indicate that official property sale documents surged by 8.9% in the third quarter of 2025, rising from 4,081 to 4,444 transactions compared to the same period last year. Domestic buyer transactions increased by 8.6% while foreign buyer purchases grew by 9.3%. Regional transaction volumes were as follows:

Limassol: 1,431 transactions.
Nicosia: 981 transactions.
Larnaca: 921 transactions.
Paphos: 878 transactions (with 68% of buyers being foreign nationals).
Ammochostos: 233 transactions.

Credit Expansion Fueling Market Activity

The housing market is further buoyed by an impressive increase in new mortgage lending, reaching €972 million between January and September 2025—a 22% increase compared to the previous year. Concurrently, the average mortgage interest rate fell sharply to 3.03% in September 2025 from 4.27% a year earlier. Financial institutions anticipate a rise in net demand in the upcoming fourth quarter, even as lending criteria remain stringent yet consistent.

Supply Side Developments: Building Permits and Construction Activity

On the supply front, positive developments are measured by a 4.6% increase in building permits issued from January through July 2025 and a record of eight consecutive quarters of positive construction activity. The index of construction material prices saw a modest rise of 1.3%. However, expectations for future price increases have moderated, as evidenced by a significant decline in the European Union’s price expectation index—from 56.2 to 25.5 over the past year—indicating a more tempered outlook on future price surges.

Overall, these developments underscore a resilient and evolving real estate market in Cyprus, where strategic credit expansion and active buyer participation—both domestic and international—are reshaping market dynamics in the face of variable regional trends.

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Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

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Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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