Cyprus home prices rose 8.5% in the second quarter
Cyprus Mail reported on September 24 fresh data from the Central Bank of Cyprus: in the second quarter of 2026, residential property prices rose by 8.5% year on year. The price index reached 109.7 points and was 2.4% higher than in the previous quarter. For investors, this is an important signal: the market is not rising only in asking prices, but also in official statistics, with growth supported by real transactions and demand from both foreign and local buyers.
What happened
According to the Central Bank of Cyprus, house prices rose by 5.8% year on year, while apartment prices increased by 8.9%. Price growth accelerated in almost all districts except Limassol, where the market is already expensive and more mature. Famagusta recorded the strongest annual increase at 10%, followed by Larnaca at 9.8% and Paphos at 9.6%. Prices rose by 7.8% in Limassol and by 5.7% in Nicosia.
What matters is that prices are rising together with market activity. In the second quarter, 5,298 sale contracts were deposited, 15.4% more than a year earlier. The central bank noted that the increase was driven mainly by stronger demand from foreign buyers, while domestic demand also continued to grow, although at a slower pace.
What this means for buyers
The combination of rising prices and rising transactions usually points to a liquid market. If prices increase while sales are weak, that may simply reflect seller expectations. But when the number of registered contracts rises at the same time, the market is showing real depth of demand.
For buyers, this means that waiting for a broad correction becomes less practical. A more useful strategy is to focus on districts where growth is not yet fully priced in: Larnaca, Paphos, selected areas of Famagusta, and apartment formats where demand is supported by tenants, relocation and foreign buyers.
The balance between demand and supply
There is also movement on the supply side. Approved residential units covered by building permits reached 8,978 in the first five months of 2026, up 63.7% from a year earlier. This matters because the market is not only becoming more expensive; it is also gradually adding future housing stock.
For investors, this creates two conclusions. First, quality properties in established locations remain valuable because demand is already confirmed by transactions. Second, new projects need to be selected carefully: not every district with rising supply will deliver the same rental yield and exit liquidity.
Investor takeaway
The latest Central Bank data confirms a strong market cycle in Cyprus: prices, transactions and building activity are all rising at the same time. The best opportunities are no longer about buying “Cyprus in general”, but about selecting the right city, district and property format. Investors should focus on locations where foreign demand is already visible in transactions, but prices have not yet reached Limassol levels.
Source: Cyprus Mail
Founder of ProNadlan. New-build property selection and deal support in Cyprus: Limassol, Paphos, Larnaca.