Rising Cyprus rental costs outpace EU average despite stable house prices

House prices in Cyprus remained stable on a quarterly basis in the fourth quarter of 2025, even as prices continued to rise across most of the European Union, according to Eurostat.

Across the euro area, house prices increased by 5.1 per cent year-on-year in the fourth quarter of 2025, the statistical office reported.

In the wider EU, prices rose slightly faster, recording a 5.5 per cent annual increase, it added.

These figures follow similar trends in the third quarter of 2025, when house prices increased by 5.1 per cent in the euro area and 5.4 per cent in the EU.

On a quarterly basis, house prices rose by 0.6 per cent in the euro area and by 0.8 per cent in the EU during the fourth quarter of 2025.

In contrast, Cyprus recorded no change in house prices compared with the previous quarter, placing it among the few member states with stable performance.

Among EU member states, only one country recorded an annual decline in house prices, with Finland registering a 3.1 per cent decrease, while all other reporting countries saw increases.

The strongest annual growth was recorded in Hungary, where house prices surged by 21.2 per cent.

Portugal and Croatia also posted significant increases of 18.9 per cent and 16.1 per cent respectively.

Compared with the previous quarter, house prices fell in three member states, namely France, Finland and Estonia.

Cyprus was the only country where prices remained unchanged, while the majority of member states recorded increases.

The strongest quarterly growth was observed in Slovenia, Hungary and Portugal.

In addition to house prices, Eurostat data showed that rents in the EU increased by 3.2 per cent year-on-year in the fourth quarter of 2025.

On a quarterly basis, rents rose by 0.6 per cent across the EU, Eurostat reported.

Over the past decade housing costs have risen significantly across Europe.

Between 2015 and the third quarter of 2025, house prices in the EU increased by 64.9 per cent, while rents rose by 21.8 per cent.

During the same period, house prices increased more than rents in 25 EU countries for which data are available.

Hungary recorded the most dramatic growth, with house prices increasing by 290 per cent since 2015.

Prices more than doubled in 12 countries, including Portugal, Lithuania and Bulgaria.

Finland was the only country to record an overall decline in house prices over the same period.

At the same time, rents increased in all 27 EU countries. The highest increases in rents were recorded in Hungary, Lithuania, as well as Ireland and Poland.

Data on the harmonised index of consumer prices for housing rentals showed a continued upward trend in Cyprus.

Based on Eurostat date, the Cyprus rental index reached 130.60 in December 2025, up from 121.87 in the EU overall.

This compares with 130.21 in November 2025, 130.14 in October 2025 and 129.77 in September 2025.

The figures indicate a steady rise in rental costs in Cyprus, even as house prices showed short-term stability.

The latest figures highlight diverging dynamics between property prices and rental markets across the EU.

They also underline the broader pressures on housing affordability, with Cyprus reflecting similar trends in rental growth despite stable quarterly house prices.