Nicosia, Cyprus. Eurostat data show house prices and rents in Cyprus rising faster than the EU average, alongside signs of growing affordability pressure. Separately, the Paphos Hoteliers Association re-elected its president and Aegean Airlines reported higher first-quarter revenue with a wider seasonal loss.
Eurostat flags rising prices and rents in Cyprus
Cyprus’ housing market is showing renewed signs of pressure, with house prices and rents rising faster than the EU average, according to Eurostat data drawn from its new Housing Dashboard and its Housing in Europe 2025 publication.
The data point to an uneven picture, with Cyprus continuing to record strong housing investment and construction activity, while affordability pressures are becoming more visible, particularly for younger households and those trying to enter the market.
Price and rent growth outpaces EU averages
House prices in Cyprus rose by 6 per cent in the fourth quarter of 2025 compared with the same period a year earlier, slightly above the EU average of 5.5 per cent.
Rents also increased faster than the bloc average, rising by 4.2 per cent year-on-year in March 2026, compared with 2.9 per cent in the EU.
House price-to-income ratio rises
The house price-to-income ratio in Cyprus increased by 0.6 per cent in 2024, while the EU recorded a 1.7 per cent decline. Eurostat’s figures indicate that, despite Cyprus’ comparatively favourable position in several affordability indicators, access to housing continues to come under pressure.
Loizides re-elected as Paphos Hoteliers Association president
Evripides Loizides has been re-elected as president of the Paphos Hoteliers Association, securing a renewed mandate for a new three-year term as the organisation looks to strengthen its role in Cyprus’ tourism sector.
The re-election confirms the continuation of Loizides’ leadership within the district’s organised hotel industry, with a focus on maintaining and expanding Paphos’ position in both the Cyprus and international tourism markets.
Alongside the leadership vote, a new board of directors was formed, taking office for the next three years with the aim of supporting the development and competitiveness of Paphos’ tourism product.
The association said the new board will work to reinforce the district’s presence in the tourism sector as Paphos continues to hold a strong position as one of Cyprus’ key destinations.
Aegean Airlines reports higher turnover and traffic
Aegean Airlines reported higher revenue and passenger traffic in the first quarter of 2026, although its seasonal loss widened sharply as foreign exchange losses and pressure from the Middle East crisis weighed on its results.
The group said consolidated turnover rose 5 per cent year-on-year to €320.7 million, compared with €306 million in the first quarter of 2025, while passenger traffic increased 4 per cent to 3.23 million passengers.
Which of these developments do you expect to affect Cyprus’ economy most in 2026?
