Nicosia, Cyprus. Cyprus’s property market recorded a record-breaking year in 2025, with total transaction value reaching €6.5 billion, up 8%, across 25,600 transactions. Building permits also increased, rising 9% in number and 28% in value.
Record activity in property market
The figures suggest stronger construction activity, but the rental market moved in the opposite direction. The annual rental analysis from the department of lands and surveys, covering September 2024 to September 2025, showed that the average rent for a three-bedroom apartment in Nicosia rose from €950 to €1,300 in one year.
A one-bedroom apartment in Engomi increased from €625 to €725 over the same period. Consultancy firm Perprice also recorded rental increases in three of the four major cities between August and October 2025, with Paphos rising 4.8% in two months.
Vacancy levels remain low
Listings are also becoming scarce. Vacancy rates in Limassol are now around 2% to 4%, while properly priced rental units are reportedly being rented in under three weeks.
The data points to rising construction alongside higher rents. The article says this does not indicate a contradiction, but rather a shortage of the right homes.
European housing trends
Eurostat data shows that between 2010 and the end of 2024, EU house prices rose 55.4% overall, while rents increased 26.7%.