Breaking news

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

by THEFUTURE.TEAM

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:

  • 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.

Cyprus Expected Working Life Reaches 39.5 Years, Above EU Average

by THEFUTURE.TEAM

People in Cyprus are expected to spend 39.5 years in the workforce, around two years longer than the European Union average of 37.5 years, according to the latest Eurostat data for 2025.

The figure places Cyprus among the EU countries with the longest expected working lives.

Cyprus Ranks Above EU Average

Only a handful of member states recorded higher figures than Cyprus. The Netherlands topped the ranking at 44 years, followed by Sweden at 43.4 years, Denmark at 42.6 years, and Estonia at 41.5 years.

At the other end of the ranking were Romania with 32.7 years, Italy with 33.0 years, Bulgaria with 34.6 years and Greece with 35.3 years.

Gender Gap Remains Wider Than EU Average

Men in Cyprus are expected to remain in work for 42.1 years, compared with 36.7 years for women. The gap of 5.4 years exceeds the EU average gender gap of 4.1 years.

Across the bloc, Lithuania, Latvia and Estonia were the only countries where women were expected to spend longer in employment than men. Finland recorded the smallest positive gender gap at 0.7 years.

Italy posted the widest gap at 8.9 years, followed by Romania at 6.9 years, Greece at 6.7 years and Malta at 6.3 years.

Working Lives Continue To Lengthen

Between 2016 and 2025, expected working life in Cyprus increased by 3.5 years, placing the country among the strongest performers in the EU over the period. Men’s expected working life rose by 3.3 years, while women’s increased by 3.6 years.

Across the EU, every member state recorded an increase. Malta posted the largest gain at 4.9 years, followed by Hungary and Ireland at 4.2 years each, and the Netherlands at 4.1 years.

Malta’s increase was driven largely by women, whose expected working life rose by 7.8 years, the biggest increase recorded across the bloc.

By comparison, Romania, Spain, Italy, Germany and Austria recorded gains of two years or less over the same period.

Women’s Working Lives Increase Faster Across Europe

Women’s expected working life increased faster than men’s in most EU countries. Denmark, Romania, Sweden and Greece were the main exceptions.

In Cyprus, gains for men and women were broadly similar, alongside Bulgaria, Belgium and Slovenia.

Aretilaw firm
eCredo
Uol
The Future Forbes Realty Global Properties

Become a Speaker

Become a Speaker

Become a Partner

Subscribe for our weekly newsletter