Housing pressures are increasing in Cyprus and across parts of Europe, with house prices and rents continuing to rise, according to Eurostat data published under its “How is the housing situation in the EU?” section.
Access to affordable housing has become one of the eurozone’s major social and economic challenges, as property prices and rents rise and housing shortages persist across Europe.
The average price of homes in the EU rose by 60% between 2015 and 2025, far outpacing wage growth, while rents in many areas now account for more than 40% of average income.
Only about 6% to 7% of the EU’s total housing stock is currently classified as social housing. Member states are increasingly examining planning reforms, short-term rental rules and tax changes to help rebalance the market.
In Cyprus, house prices rose by 6% in the fourth quarter of 2025 compared with 2024, slightly above the EU average of 5.5%, according to Eurostat’s interactive data.
The house price-to-income ratio in Cyprus increased by 0.6%, while the EU recorded a 1.7% fall and Greece posted a 4.8% rise.
The ratio is a key measure of housing affordability. It calculates how many years of disposable income are needed to buy a typical home, indicating whether property prices are justified or overvalued.
Housing-related investment accounted for 40.8% of total investment in Cyprus in 2025, well above the EU figure of 23.5% and Greece’s 18.2%.
Elsewhere in Europe, France recorded a 1% rise in house prices in the fourth quarter of 2025 compared with 2024. Housing-related investment accounted for 26.6% of total investment, while the house price-to-income ratio fell by 7.7%.
In Germany, house prices rose by 3%, housing-related investment accounted for 30.1% of total investment and the house price-to-income ratio fell by 5.4%.
Italy recorded a 4.1% increase in house prices, with housing-related investment at 20.1% of total investment and a 0.1% rise in the house price-to-income ratio.
In Latvia, house prices rose by 11%, housing-related investment accounted for 10.7% of total investment and the house price-to-income ratio fell by 3.8%.
Lithuania recorded a 10.8% rise in house prices, with housing-related investment at 14.6% of total investment and a 2.3% increase in the house price-to-income ratio.
In the Netherlands, house prices rose by 6.2%, housing-related investment accounted for 27.1% of total investment and the house price-to-income ratio increased by 2.3%.