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Buying a home in Cyprus became considerably more expensive over the past year, with residential property prices rising 8.5% in the second quarter of 2026.
The Central Bank’s Residential Property Price Index reached 109.7, climbing another 2.4% in just three months. The bank attributed the increase mainly to strong demand from foreign buyers, followed by local demand, as well as construction costs that continue to rise.
Apartments remained the hotter part of the market, with prices increasing 8.9% compared with the same period last year. House prices rose by a more moderate, but still substantial, 5.8%.
The sharpest district-level increase was recorded in Famagusta, where prices climbed 10%. Larnaca followed at 9.8%, with Paphos close behind at 9.6%.
Prices rose by 7.8% in Limassol. Although that represented a slowdown, the city’s property market continued to become more expensive. Nicosia recorded the smallest increase at 5.7%.
Demand also showed little sign of fading. A total of 5,298 property sales contracts were filed during the second quarter, up 15.4% from 4,592 a year earlier. The Central Bank said the rise was driven mainly by foreign buyers, although purchases by Cypriots also increased.
More homes could eventually come onto the market. Building approvals issued between January and May provided for 8,978 housing units, up 63.7% from 5,484 during the same period in 2025. However, approved projects take time to become completed homes, meaning additional supply may not provide immediate relief for buyers.
Why it matters
For first-time buyers, an 8.5% increase can mean needing a larger deposit, borrowing more from the bank, or delaying plans to buy altogether. Existing homeowners may see the value of their property rise, but that offers little comfort to young people and families trying to enter the market.
The surge in planned construction offers some hope that supply will catch up. For now, however, demand, particularly from overseas buyers, is still moving faster than many local salaries can follow.
