Apartments across Cyprus recorded a sharp annual increase of 10.8 per cent in the first quarter of 2026, according to new data released by the Central Bank of Cyprus (CBC) on Tuesday.
Overall, the Residential Property Price Index rose by 7.5 per cent year-on-year, with apartment prices significantly outpacing those of houses, which increased by 3 per cent, reflecting a modest deceleration in the housing segment.
The CBC noted that, compared with 2010 (the benchmark year for the index) apartment prices nationwide have climbed by 27 per cent, while Limassol has seen a much steeper rise of 53 per cent.
The continued upward trend in property prices is largely driven by sustained demand from foreign buyers, alongside a smaller but still notable contribution from domestic purchasers. Rising construction costs have also played a role, even as housing supply shows gradual signs of expansion.
On a quarterly basis, the overall index recorded a 2.3 per cent increase in the first quarter of 2026, slightly below the 2.4 per cent growth observed in the final quarter of 2025. This was attributed to a faster quarterly increase in house prices of 1.5 per cent, alongside a slowdown in apartment price growth to 2.4 per cent.
Demand indicators further highlight the market’s momentum. Data from the Department of Land and Surveys (DLS) show that total property sales rose by 13.8 per cent year-on-year in the first quarter, reaching 4,709 transactions compared with 4,137 in the same period of 2025.
Foreign buyers were the primary drivers of this increase, with transactions rising by 22.3 per cent to 2,044, up from 1,671 a year earlier. Domestic buyer activity also grew, though more moderately, with an 8.1 per cent increase to 2,665 transactions.
In terms of regional distribution, Limassol recorded the highest number of property transactions at 1,499, followed by Nicosia with 1,065, Larnaca with 994, and Paphos with 919. Famagusta registered the lowest number of transactions at 232.
Buyer composition varied across districts. Domestic purchasers accounted for 84 per cent of transactions in Nicosia, while in Limassol and Famagusta they made up around 60 per cent. Larnaca showed a relatively balanced split between local and foreign buyers, whereas Paphos remained heavily dominated by international demand, with foreign buyers representing 75 per cent of transactions.
On the supply side, early indicators point to a significant increase in construction activity. According to data from the Cyprus Statistical Service (Cystat), building permits for residential units surged by 79.2 per cent in the first two months of 2026, rising to 3,463 units from 1,932 in the corresponding period last year.
