The Central Bank of Cyprus (CBC) Residential Property Price Index (RPPI) recorded an annual increase of 8.5% in the second quarter of 2026, with a 2.4% further increase compared to the previous quarter.
According to CBC, this increase is attributed to the ongoing strong demand for housing, mainly from foreign buyers and, to a lesser extent, from local buyers, as well as due to the rising construction costs.
In particular, House prices recorded accelerated growth of 5.8%, while apartment prices showed a slight deceleration, reaching 8.9% during the quarter under review.
As regards annual changes in the Residential Property Price Indices by district, acceleration was recorded in all districts except Limassol where a deceleration was recorded. More specifically, Nicosia recorded an accelerated increase (5.7%), Larnaca (9.8%), Paphos (9.6%) and Famagusta (10%), while a decelerated increase was observed in Limassol (7.8%).
Large increase in sales contracts and building permits
Regarding demand for real estate properties, data from the Department of Lands and Surveys (DLS) registered a significant annual increase of 15.4% in the number of sales contracts in 2026 Q2, reaching 5,298 compared with 4,592 in 2025 Q2.
According to CBC, this increase primarily reflects stronger demand from foreign buyers, while demand from domestic buyers also made a positive, albeit more moderate, contribution.
Regarding supply of real estate properties, available data indicate a continued strengthening of construction activity during 2026 Q2.
More specifically, according to the available data, the number of building permits issued recorded a significant increase of recorded an annual increase of 63.7% in the first five months of 2026, from 5,484 units in January–May 2025 to 8,978 units in the corresponding period of 2026.
According to CBC, a gradual increase in supply is also indicated by the Business and Consumer Surveys (BSC) of the European Commission (June 2026), with the index for construction activity over the previous three months remaining at positive level.
(Source: CNA)
