Eurostat data show Cyprus house prices rose 6% in the fourth quarter of 2025 compared with 2024, slightly above the EU average increase of 5.5%. The house price-to-income ratio in Cyprus rose 0.6% while the EU average fell 1.7% and Greece recorded a 4.8% rise. Housing-related investment accounted for 40.8% of total investment in Cyprus in 2025, well above the EU share of 23.5%. Rising prices and rents are intensifying affordability pressures.

Across the EU, average home prices climbed about 60% between 2015 and 2025, far outpacing wage growth, and rents in many areas now exceed 40% of average income. Social housing makes up only around 6–7% of the stock. Member states are examining planning reforms, short-term rental rules and tax changes to rebalance markets. Recent national figures include France (+1% prices, price-to-income -7.7%, investment 26.6%), Germany (+3%, -5.4%, 30.1%), Italy (+4.1%, +0.1%, 20.1%), Netherlands (+6.2%, +2.3%, 27.1%), Latvia (+11%, -3.8%, 10.7%) and Lithuania (+10.8%, +2.3%, 14.6%).