Cyprus Property Market: Apartment Prices Increase 10.8% in Q1 2026

Apartment prices in Cyprus increased by 10.8% year-on-year in the first quarter of 2026, according to the latest figures released by the Central Bank of Cyprus (CBC), highlighting the continued strength of the country’s residential property market.

The overall House Price Index, which tracks both houses and apartments, recorded an annual increase of 7.5% during the first quarter. While house prices rose by 3%, apartment prices significantly outperformed the broader market, reflecting sustained demand for this segment.

Compared with the 2010 base year, apartment prices across Cyprus are now approximately 27% higher. Limassol continues to lead the market, with apartment prices rising by 53% over the same period.

On a quarterly basis, the overall House Price Index increased by 2.3% in Q1 2026, slightly below the 2.4% growth recorded in the previous quarter. House prices rose by 1.5%, while apartment prices posted quarterly growth of 2.4%.

Regional data showed stronger annual price growth in Nicosia and Larnaca, where the overall index increased by 2.8% and 8.9%, respectively. Meanwhile, price growth moderated in Limassol and Paphos, while Famagusta remained broadly unchanged during the quarter.

Demand across the property market remained robust, driven primarily by international buyers. According to the Department of Lands and Surveys, 4,709 property transactions were recorded in the first quarter of 2026, representing a 13.8% increase compared with the same period last year.

Sales to foreign buyers surged by 22.3%, significantly outpacing the 8.1% growth recorded among domestic purchasers. Limassol registered the highest transaction volume with 1,499 sales, followed by Nicosia, Larnaca, and Paphos.

The housing finance market also remained active. Net new residential mortgage lending reached €353.6 million in Q1 2026, an increase of 24.5% year-on-year. At the same time, the average mortgage interest rate declined to 3.15% in March, down from 3.53% a year earlier, reflecting the European Central Bank’s easing monetary policy.

On the supply side, the outlook has improved. Residential building permits increased by 79.2% during the first two months of 2026, indicating that additional housing supply is expected to enter the market in the coming years.

Despite this positive development, the Central Bank of Cyprus noted that labour shortages and persistently high construction costs continue to place upward pressure on property prices, suggesting that the market is likely to remain resilient in the near term.