Newsroom
If you feel like buying a home in Cyprus keeps getting further out of reach, you are not imagining it.
New figures from the Central Bank show that apartment prices rose by 10.8% in the first quarter of 2026 compared to the same period last year, continuing a steady climb that is reshaping the property market across the island.
Overall, house prices went up by 7.5%, but it’s apartments that are really driving the surge. Houses saw a slower increase of around 3%.
Limassol still in a league of its own
Looking at the long-term picture, the difference becomes even clearer.
Compared to 2010, apartment prices across Cyprus are up by 27%. In Limassol, however, they have skyrocketed by 53%, a reminder that the city remains the country’s most expensive and competitive property market.
For many Cypriots, especially younger buyers, Limassol has long shifted from “difficult” to “how is this even possible?”
Foreign demand keeps pushing prices up
According to the Central Bank, the main driver behind the continued rise is demand, and particularly demand from foreign buyers.
More overseas investors are entering the market, especially in coastal cities like Limassol and Paphos, while local demand also continues but at a slower pace.
At the same time, construction costs remain high, even if they are rising more slowly than in previous years.
Put simply: more people are looking to buy, and building remains expensive.
Who is buying where?
Sales data from the Lands and Surveys Department shows a 13.8% annual increase in property transactions in early 2026.
Foreign buyers recorded a sharp 22.3% rise, while local buyers increased by 8.1%.
Limassol remains the busiest property hub with nearly 1,500 transactions, followed by Nicosia, Larnaca and Paphos.
But the buyer profile varies sharply by district:
- In Nicosia, most buyers are Cypriot residents.
- In Paphos, foreign buyers dominate.
- In Limassol and Famagusta, the mix is more balanced.
- Larnaca sits somewhere in the middle.
Loans are easier again, and that’s fueling demand
Another factor keeping the market active is lending.
Housing loans grew by 24.5% year-on-year, reaching €353.6 million in early 2026.
At the same time, interest rates have started to ease, dropping to around 3.15% from 3.53% a year earlier.
In simple terms: borrowing is becoming slightly cheaper again, and more people are taking advantage of it.
But banks are not opening the floodgates; lending rules remain strict.
More homes are being built, but not fast enough (yet)
There is some relief on the supply side.
Building permits for new homes jumped by almost 80% in the first two months of 2026 compared to last year, a strong signal that construction activity is picking up.
However, the Central Bank notes that this increase will take time to translate into actual completed homes.
And there is another problem: labor shortages in the construction sector, which are pushing wages, and eventually prices, even higher.
What comes next?
Market expectations suggest prices are still on an upward path. Surveys show more people expect further increases in the coming months rather than a slowdown.
For Cypriots trying to buy a first home, that means one thing: competition is unlikely to ease anytime soon.
And for many families, especially in urban areas, the gap between incomes and property prices continues to widen, even as more cranes appear on the skyline.
