House prices in Cyprus recorded a modest year-on-year increase of 1 per cent during the second quarter of 2025, according to preliminary estimates published by the Cyprus Statistical Service (Cystat).

In addition, the service on Friday reported that the House Price Index (HPI) for the second quarter stood at 113.99 units.

Compared with the first quarter of 2025, the HPI rose by 0.2 per cent, while compared with the same period of 2024, the index showed an annual increase of 1 per cent.

Cystat explained that the HPI is a quarterly index that measures changes in the average prices of residential dwellings across the country.

The index captures both new and existing homes, and it also includes the land component of residential property.

The data used to compile the index are sourced from the Department of Lands and Surveys.

Cystat confirmed that the figures cover all areas under the control of the Republic of Cyprus.

The methodology divides the data into two groups of dwellings, new and old. For each group, a rolling window hedonic regression model is applied to calculate the sub-indices.

These sub-indices are then weighted based on the total value of the properties in each category from the previous year.

The base year for the index is 2015, set at 100 units. The House Price Index is a key indicator for tracking developments in the residential property market, providing insights into both quarterly and annual changes.