Apartments outpace houses as Cyprus property prices reach record highs

Economy housingHousing crisisproperties Apartments outpace houses as Cyprus property prices reach record highs Limassol skyline Relevant News Apartments outpace houses as Cyprus property prices reach record highs 29 June 2026 Double-cab vehicle overturns near Lady’s Mile, two slightly injured (photos) 29 June 2026 Fire breaks out at Aradippou factory as crews search for trapped persons 29 June 2026 Theano Thiopoulou 29 June 2026 FacebookXWhatsAppEmailPrintViber Apartment prices in Cyprus hit a record high in the first quarter of 2026, surpassing the peak recorded during the 2008 property bubble, according to Central Bank data analysed by Phileleftheros. The apartment price index reached 127 units in Q1 2026, up from 114.4 units in Q1 2025 — an annual rise of 11.4%. Compared with 2015, prices have risen 78.87% over ten years. The index now stands 65% above the low recorded in 2006. By contrast, the index had fallen to 74.7 units in 2014 and 82.5 units in 2013 following the economic crisis that erupted in Cyprus after 2013. The trend is not new. In Q4 2025, apartment prices had already risen 9.6% year-on-year, compared with 3.4% for houses, pointing to consistently stronger momentum in the apartment market. Houses lag well behind House prices are rising far more modestly. The house price index stood at 95.6 units in Q1 2026, up from 93.2 units in Q1 2025 — a rise of 1.93%. Over ten years, house prices have risen 26.45%. What is driving prices up A constrained supply of new homes, rising demand from abroad, and higher construction costs driven by more expensive building materials have all contributed to the sharp rise in prices, according to the Phileleftheros analysis. Domestic demand has also increased. The surge in construction activity that has followed has not appeared to satisfy existing demand. Where transactions are concentrated Limassol recorded the highest number of sales contracts, at 1,499, followed by Nicosia (1,065), Larnaca (994), Paphos (919) and Famagusta (232). Domestic buyers account for 84% of transactions in Nicosia and around 60% in Limassol and Famagusta. In Larnaca, the ratio of domestic to foreign buyers was broadly balanced, while in Paphos foreign buyers dominate, accounting for 75% of transactions. Mortgage lending rises sharply Household mortgage lending continued to grow at a steady pace in Q1 2026. Net new mortgage lending rose 24.5% year-on-year, reaching €353.6 million in Q1 2026 compared with €284.1 million in Q1 2025. The weighted average mortgage rate fell to 3.15% in March 2026, down from 3.53% in March 2025. What buyers need in practice For a buyer looking to purchase an apartment priced at €200,000, a minimum deposit of around €40,000 (20%) is typically required, rising to €60,000 (30%) in the best case. A monthly net income of between €1,600 and €2,000 is generally needed. A buyer aged around 30 can set a repayment period extending to age 65 or 70, allowing for lower monthly instalments. For a couple looking to purchase an apartment at €250,000, the required monthly net household income typically ranges between €2,500 and €4,000, with a minimum deposit of 30% of the purchase price required. For mortgages above €300,000, banks apply stricter sustainability criteria. A couple would likely need a combined monthly net household income of between €3,500 and €4,500 and cash of €90,000 to cover a 30% deposit. Read more: Cheaper mortgages and foreign buyers push Cyprus property prices up Subscribe to our Newsletter Latest News Double-cab vehicle overturns near Lady’s Mile, two slightly injured (photos) Fire breaks out at Aradippou factory as crews search for trapped persons Owner of Xylofagou building where boys died says ‘I didn’t want children in premises’ Two Limassol food delivery riders robbed by masked attackers on motorcycles Father and stepmother held over deaths of boys found locked in Xylophagou car Things to do on Monday, June 29 Care allowances frozen for seven years as cost-of-living crisis hits disabled Cypriots hard Follow en.philenews on Google News and be the first to know all the news about Cyprus and the world.