Property prices in Cyprus rose by 8.5 percent, with the highest increase in the Famagusta region.

Property prices in Cyprus rose by 8.5% in the second quarter of 2026 compared to the same period last year. In just three months, the overall house and apartment price index rose by a further 2.4%.

The fastest growth was recorded in the Cypriot-controlled part of Famagusta, where residential property prices rose by an average of 10 percent. Larnaca and Paphos saw slightly smaller increases. In Limassol, prices continued to rise, but at a slower pace than in the previous period.

Property prices in Cyprus continue to rise

According to the latest report from the Central Bank of Cyprus, the overall residential property price index reached 109.7 points. The reference point is the first quarter of 2010, for which a value of 100 was used.

The data is based on property valuations provided by cooperating lending institutions. It covers houses and apartments located in areas controlled by the Republic of Cyprus: Nicosia, Limassol, Larnaca, Paphos, and Famagusta.

Over the year, apartment prices rose by 8.9 percent. House prices rose by 5.8 percent. Apartment prices continue to rise faster than detached houses.

In the previous quarter, the annual growth rate for apartment prices was 10.8%, and for houses 3%. The latest data show a slight slowdown in the apartment segment and a significant acceleration in house price growth.

The greatest growth in the Famagusta region

Residential property price increases were recorded in all five districts covered by the study:

The Central Bank notes that the annual growth rate accelerated in all regions except Limassol. However, this does not mean that prices in Limassol have fallen. Properties were on average 7.8% more expensive than a year earlier, but the rate of price increases was slower than in previous periods.

The index reflects average price changes, so it doesn't mean that every property has increased in price by the exact amount assigned to a given district. Price varies depending on factors such as the city, district, building age and condition, area, standard, and distance from the sea.

Foreign buyers drive demand

The Central Bank cites strong demand from foreign buyers as one of the main reasons for the increase. Residential interest has also increased, albeit at a slower pace. High construction costs remain a second major factor.

In the second quarter of 2026, the Cadastral Office registered 5,298 real estate sales contracts, up from 4,592 in the same period a year earlier. This represents a 15.4% increase in the number of transactions.

Data shows that buying interest remains high despite rising prices. Markets outside Limassol are particularly dynamic, with starting prices typically lower and new developments attracting both local and international buyers.

More new apartments will be built

At the same time, the number of planned properties has increased significantly. Building permits issued in the first five months of 2026 covered 8,978 residential units, compared to 5,484 in the same period in 2025.

This represents a 63.7% increase. However, not all of the announced units will be available for sale immediately. Several years may pass between obtaining a permit and completion, and some projects may be delayed, scaled back, or halted entirely.

Growing supply may eventually reduce the pressure on property prices in Cyprus. For now, strong demand, interest from foreign buyers, and high costs of new developments continue to keep the market on an upward trajectory.

Sources: Central Bank of Cyprus, Cyprus News Agency, Cyprus Mail, Kathimerini Cyprus