Cyprus has recorded a higher rate of housing arrears compared to the European Union average, reflecting growing financial pressure on households trying to meet mortgage and rental obligations.
According to data recently published by Eurostat, arrears on mortgage repayments and rent affected 4.5% of the population in Cyprus in 2025. In contrast, the average across the European Union stood at 3% for the same period.
The figures highlight a broader trend of escalating property costs on the island, with both residential property prices and rental rates consistently outperforming EU averages.
Rising property and rental prices
Residential property prices in Cyprus increased by 6% during the fourth quarter of 2025. This represents an acceleration from the 4.2% annual growth recorded in the third quarter of 2025, and a further rise from the 4.5% growth observed in the fourth quarter of 2024. Across the EU, the average property price increase was slightly lower, standing at 5.5% in the final quarter of 2025.
A similar disparity is visible in the rental market. Rental prices in Cyprus rose by 4.5% in April 2026, noticeably ahead of the 3% average rental price increase recorded across the EU as a whole during the same month.
