The Central Bank of Cyprus reports a 7.5% annual rise in residential property prices, with apartment costs climbing steeply while a boom in building permits signals rising future supply.

Apartment and House Price Dynamics

Apartments in Cyprus were 10.8% more expensive in the first quarter of 2026 compared to the corresponding quarter of 2025, according to data published on Tuesday by the Central Bank of Cyprus.

Overall, the Residential Property Price Index increased by 7.5% year-on-year, with apartments recording a price increase of 10.8% and houses by 3%, showing a slight slowdown.

In fact, compared to 2010, which is considered the reference year by the CBC, prices have increased by 27% for apartments nationwide, while in Limassol, the increase reaches 53%.

According to the CBC, the ongoing upward trend of the Residential Property Price Index in the first quarter of 2026 is attributed to the continued strong demand for housing purchases mainly from foreign buyers and to a lesser extent from domestic buyers, the rising construction costs, while the supply of housing is gradually increasing.

Quarterly Trends and Transaction Growth

Compared to the previous quarter, the Residential Property Price Index (houses and apartments) in the first quarter of 2026 recorded a quarterly increase of 2.3% compared to an increase of 2.4% in the fourth quarter of 2025. This resulted from an accelerating quarterly rise of 1.5% in house prices and a slowing increase of 2.4% in apartment prices.

Regarding the demand for real estate, according to data from the Department of Land and Surveys (DLS), the total number of sales documents in the first quarter of 2026 recorded a significant annual increase. According to DLS data, the sales documents, which concern all types of properties, recorded an annual increase of 13.8% in the first quarter of 2026 (4,709 compared to 4,137 in the first quarter of 2025). This increase is mainly attributed to foreign buyers, while demand from domestic buyers also recorded an increase, albeit to a more limited extent.

Specifically, during the quarter under review, the number of properties sold to foreign buyers increased by 22.3% year-on-year (2,044 compared to 1,671 in the first quarter of 2025), while there was an annual increase of 8.1% in the number of properties sold to domestic buyers (2,665 compared to 2,466 in the first quarter of 2025).

Regional Market Breakdown

Regarding the number of sales documents by province, most transactions have been made in Limassol (1,499), followed by Nicosia (1,065), Larnaca (994), and Paphos (919), while Famagusta (232) records the lowest number of transactions.

The percentage of domestic buyers stands at 84% in the Nicosia district and around 60% in the Limassol and Famagusta districts. In the Larnaca district, the ratio of domestic to foreign buyers was generally balanced, while in Paphos, foreign buyers dominate (75%).

Future Construction and Housing Supply

Regarding the supply of housing, according to available monthly data from the Cyprus Statistical Service (CYSTAT), the number of residential units for which building permits were granted, which is a leading indicator of construction activity, recorded an annual increase of 79.2% in the first two months of 2026 (from 1,932 units in January-February 2025 to 3,463 units in the corresponding period of 2026)