viotopo - Cyprus real estate marketplace

The Real Estate Market in Cyprus: Analyzing the Trends and Dynamics in Q4 2023

The Real Estate Market in Cyprus: Analyzing the Trends and Dynamics in Q4 2023

The real estate market in Cyprus continues to exhibit dynamic trends, driven by various factors including economic conditions, interest rates, and market demand. The Central Bank of Cyprus (CBC) provides detailed insights through its Residential Property Price Index (RPPI), highlighting the changes and developments in the market. This article delves into the latest data from the CBC for the fourth quarter of 2023, offering a comprehensive analysis of the current state of the real estate market in Cyprus.

Overview of Residential Property Price Trends

According to the CBC, the RPPI for both houses and apartments continued its upward trajectory in the fourth quarter of 2023. The index recorded an increase on both a quarterly and annual basis. This trend underscores the ongoing demand and rising prices in the Cypriot real estate market, particularly driven by the apartment segment.

Quarterly and Annual Price Changes

The RPPI for the fourth quarter of 2023 showed a quarterly increase of 2.3%, slightly up from the 2.2% increase observed in the previous quarter. On an annual basis, the RPPI rose by 8.3%, compared to 7.6% in the third quarter of 2023. The prices of houses increased by 1.8% quarterly and 5.7% annually, while apartment prices surged by 3.2% quarterly and 12.7% annually​​.

Regional Price Variations

The price trends varied across different regions of Cyprus. All districts recorded price increases for the fourth consecutive quarter. Specifically, the quarterly price increases were as follows, Nicosia (1.5%), Limassol (3%), Larnaca (2.5%), Paphos (2.7%), and Famagusta (2.1%). On an annual basis, the increases were 5.1% in Nicosia, 10.7% in Limassol, 11% in Larnaca, 8.3% in Paphos, and 9.5% in Famagusta​​.

Factors Influencing Price Increases

Several factors have contributed to the rising property prices in Cyprus

High Demand for Apartments

The significant demand for apartments, driven by both local and foreign buyers, has pushed prices up. This demand is reflected in the increased preference for smaller, more affordable residential units.

Limited Supply

The supply of residential properties has not kept pace with the high demand, further fueling price increases. Although there is a substantial number of ongoing construction projects, the current supply remains insufficient to meet demand​​.

Rising Construction Costs

While there has been a stabilization in construction costs, the elevated levels in recent years have contributed to the overall increase in property prices​​.

Demand and Supply Dynamics

The demand for residential properties in Cyprus continues to be robust, particularly among local buyers. However, there has been a notable decrease in the number of property transactions involving foreign buyers. This shift is partly attributed to changes in the headquartering policy and the increasing cost of borrowing due to higher mortgage interest rates.

Demand Trends

The overall demand for residential properties has seen a slight decline in terms of transaction volume and value compared to the previous year. This trend is influenced by several factors, including.

Higher Mortgage Rates

The rise in mortgage interest rates, driven by the European Central Bank's restrictive monetary policy, has increased the cost of borrowing for potential homebuyers. This has led to a decrease in the approval of new housing loans​​.

Domestic Buyer Dominance

Despite the decline in foreign buyer interest, local buyers have maintained a strong presence in the market. The number of properties sold to domestic buyers increased by 21.5% annually in the fourth quarter of 2023​​.

Supply Trends

On the supply side, the number of residential units for which building permits were issued increased by 12.2% in 2023. This increase is primarily due to a rise in permits for multi-unit buildings, reflecting the high demand for apartments. The anticipated increase in supply is expected to moderate price pressures in the medium term​​.

Impact of Economic Factors

The real estate market in Cyprus is significantly influenced by broader economic conditions, including interest rates, construction costs, and government policies.

Interest Rates and Borrowing Costs

The rise in mortgage interest rates has had a substantial impact on the real estate market. According to the latest monetary and financial statistics from the CBC, new housing loans decreased by 13.76% annually in 2023. The average mortgage interest rate increased to 5.04% in the fourth quarter of 2023, up from 4.4% in the third quarter and 3.07% in the same period of 2022​​.

Construction Costs

The index of construction material prices, published by the Statistical Service of Cyprus (CYSTAT), showed a slight increase in December 2023. However, the annual increase has been decelerating since the second quarter of 2022, indicating a stabilization in construction costs. This trend suggests that future price increases in construction materials may be limited, which could help moderate overall property price inflation​​.

Market Outlook and Future Expectations

Looking ahead, the real estate market in Cyprus is expected to experience more moderate price increases in the short term. Several factors will influence this outlook

Increased Supply

The anticipated increase in the supply of residential properties, particularly apartments, will help to alleviate some of the demand pressures and stabilize prices.

Stable Construction Costs

The stabilization of construction costs will likely reduce the upward pressure on property prices.

Economic Condition

Broader economic conditions, including interest rates and government policies, will continue to play a critical role in shaping the market dynamics.

Foreign Investment

The level of foreign investment in the real estate market will be a key determinant of future trends. Any changes in government policies aimed at attracting foreign buyers could significantly impact market conditions.


The real estate market in Cyprus remains dynamic, with rising property prices driven by strong demand, particularly for apartments. The limited supply and high construction costs have further contributed to the price increases. However, the market is expected to stabilize in the medium term as supply increases and construction costs level off. For potential buyers and investors, understanding the current trends and factors influencing the market is crucial.

Websites like Viotopo Real Estate , a prominent real estate marketplace in Cyprus, provide valuable resources and listings to help navigate the market. Staying informed about the latest developments and leveraging reliable sources of information, such as the Central Bank of Cyprus, will be essential for making informed real estate decisions. Overall, while the market continues to present opportunities, caution and strategic planning will be key to navigating the evolving landscape of the Cypriot real estate market.

By Viotopo News

Frequently asked questions

  • Key factors driving the real estate market in Cyprus include economic conditions, interest rates, market demand, and construction costs.

  • In Q4 2023, the Cyprus real estate market saw upward trends in both house and apartment prices, with increases in all districts.

  • High demand for apartments, limited supply of residential properties, and rising construction costs are influencing the Cyprus real estate market dynamics.

  • Economic factors such as interest rates and construction costs have significantly influenced the Cyprus real estate market, affecting demand, supply, and pricing.

  • Expectations for the future of the Cyprus real estate market include more moderate price increases, stabilization with increased supply, and stable construction costs.

Featured Properties


New Development Pressurized water system


Apartments For Rent Agios Spyridonas Omonia

Per month

Brand-new 2-bedroom apartment in Omonoia, Limassol with modern features and easy access to amenities and main roads.


Quiet Area Pets Allowed


Houses For Rent Pera Pedi

Per month

Charming 3-bedroom detached house in Pera Pedi village with loft, fireplace, garden, and pet-friendly policy.


City Views Walking distance to beach


Apartments For Sale Germasogeia


Renovated studio apartment in Limassol's tourist area, 200m from the beach.