**Apartment Prices Jump 10.8% in Cyprus**
Apartment prices in Cyprus experienced a significant increase of 10.8% in the first quarter of 2026 compared to the same period in the previous year, according to data released by the Central Bank of Cyprus (CBC) on Tuesday. This surge is attributed to strong demand, particularly from foreign buyers, which has continued to elevate property values across the island.
While the rise in apartment prices is notable, the overall house price index—which includes both houses and apartments—saw a more moderate increase of 7.5% year-on-year during the same timeframe. Specifically, house prices rose by 3%, indicating a slower growth rate compared to the robust performance of the apartment sector.
The CBC's report highlighted that, when compared to the reference year of 2010, apartment prices across Cyprus are now 27% higher. This trend is particularly pronounced in Limassol, where apartment prices soared by an impressive 53% over the past year.
In terms of quarterly performance, the overall house price index increased by 2.3% in the first quarter of 2026, slightly down from a 2.4% rise in the previous quarter. Within this, house prices grew by 1.5%, while the growth rate for apartment prices slowed to 2.4%.
Regional analyses revealed varying trends in price growth across different cities. Nicosia saw an acceleration in annual price growth, with the overall index rising by 2.8%. Larnaca also experienced a notable increase of 8.9%. In contrast, growth in Limassol and Paphos slowed, and Famagusta reported no change from the previous quarter.
The demand for properties in Cyprus remains robust, with the CBC noting that the increase in apartment prices is largely driven by foreign buyers. Data from the Department of Lands and Surveys indicated a 13.8% year-on-year increase in sales documents during the first quarter, totaling 4,709 transactions compared to 4,137 in the same period last year. Notably, property sales to overseas purchasers rose by 22.3%, while sales to domestic buyers increased by 8.1%. Limassol led the way with the highest number of transactions, recording 1,499 sales, followed by Nicosia, Larnaca, and Paphos. Famagusta had the fewest transactions among the regions.
In addition to rising prices and sales, the CBC reported a notable increase in mortgage activity. Net new housing loans surged by 24.5% year-on-year, reaching €353.6 million in the first quarter. The average interest rate on housing loans decreased 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, there are signs of improvement in the housing market. Building permits for residential units surged by 79.2% in the first two months of 2026, indicating that new housing stock is expected to enter the market in the coming years. However, the CBC cautioned that labor shortages and persistently high construction costs continue to exert upward pressure on prices, potentially impacting the housing market's future trajectory.
As the Cypriot property market continues to evolve, the interplay between demand, pricing, and supply will be critical in shaping the landscape for both local and foreign buyers in the months ahead.