Cyprus house prices up 8.5% as foreign demand drives second-quarter surge
Cyprus house prices rose 8.5 per cent year on year in the second quarter of 2026, with foreign and domestic demand keeping the market buoyant, the Central Bank of Cyprus says.
Cyprus house prices rose 8.5 per cent year on year in the second quarter of 2026, as demand from foreign and domestic buyers continued to support the market, according to the Central Bank of Cyprus (CBC).
The CBC’s general residential property price index reached 109.7, with prices 2.4 per cent higher than in the previous quarter. The central bank attributed the increase mainly to strong demand for residential property, particularly from foreign buyers, alongside continued domestic demand and higher construction costs.
House prices rose 5.8 per cent year on year, while apartment prices climbed 8.9 per cent. Annual growth accelerated in every district except Limassol.
- Famagusta recorded the strongest increase at 10 per cent
- Larnaca followed at 9.8 per cent
- Paphos rose 9.6 per cent
- Limassol was up 7.8 per cent
- Nicosia saw the smallest rise at 5.7 per cent
Demand strengthened during the quarter, with 5,298 sale contracts deposited with the department of lands and surveys, up 15.4 per cent from 4,592 in the same quarter of 2025. The CBC said the increase was driven mainly by stronger demand from foreign buyers, while domestic demand also rose, though more slowly.
On the supply side, building activity increased. Approved residential units covered by building permits reached 8,978 in the first five months of 2026, up 63.7 per cent from 5,484 in the same period of 2025. The CBC also cited the European Commission’s June economic sentiment survey, which showed construction activity remaining in positive territory, pointing to a gradual increase in housing supply.
What it means for residents
Rising prices and rents are the immediate reality for anyone looking to buy or rent in Cyprus, especially in Famagusta, Larnaca and Paphos, where annual growth is now close to double digits. The pressure is heaviest on first-time local buyers and tenants, while owners see the value of their property climb.
- Buyers: get pre-approval for a mortgage early and budget for higher prices, as waiting is unlikely to bring relief in the short term.
- Renters: expect landlords in high-demand districts to push for higher rents at renewal, so factor that into any household budget.
- Owners and sellers: the market favours sellers in most districts, but be aware that Limassol is no longer the fastest-growing area.
This text is written from the source article and is not a translation of it.
