Cyprus apartment prices rise 10.8% as property market maintains upward trend

Economy FamagustaLarnacaLimassolNicosiaPaphospropertiesTop News Cyprus apartment prices rise 10.8% as property market maintains upward trend Cyprus Apartment Prices Rise 10.8% As Property Market Maintains Upward Trend Relevant News Cyprus apartment prices rise 10.8% as property market maintains upward trend 23 June 2026 Andreas Papadatos: “ICPAC’s 65-year legacy carries a responsibility for the next 65 years” 23 June 2026 Citizens’ daily ordeal on the roads 23 June 2026 Newsroom 23 June 2026 FacebookXWhatsAppEmailPrintViber Apartment prices in Cyprus increased 10.8% year-on-year in the first quarter of 2026, while the overall House Price Index climbed 7.5%, driven primarily by strong demand from foreign buyers and rising construction costs, the Central Bank of Cyprus (CBC) said on Tuesday. House prices rose 3% over the same period, with the CBC noting a slight slowdown in that segment. Quarter-on-quarter, the overall index rose 2.3%, marginally below the 2.4% recorded in the fourth quarter of 2025. Compared with 2010, the CBC’s base year, apartment prices countrywide are 27% higher, with Limassol recording the sharpest long-term increase at 53%. Price movements by district Annual house price changes varied significantly by district. Larnaca and Paphos recorded accelerating growth of 5.1% and 5.2% respectively, while Limassol slowed to 2.4%. Nicosia recorded its first annual increase after a run of consecutive declines, rising 1.8%, while Famagusta posted a decline of 0.7%. Apartment prices rose across most districts on an annual basis, with Larnaca leading at 11.7%, followed by Limassol at 10.7%, Paphos at 6.4%, Nicosia at 3%, and Famagusta at 1.3%. At the district level, the overall House Price Index accelerated in Nicosia, up 2.8%, and Larnaca, up 8.9%, while Limassol and Paphos slowed to 9.1% and 6.4% respectively. Famagusta recorded no change compared with the previous quarter. Demand: foreign buyers drive sales surge Total sales documents across all property types rose 13.8% year-on-year in the first quarter of 2026, reaching 4,709 compared with 4,137 in the same period of 2025, according to data from the Department of Lands and Surveys. Foreign buyers accounted for the bulk of the increase, with properties sold to overseas purchasers rising 22.3% to 2,044, compared with 1,671 in the first quarter of 2025. Sales to domestic buyers rose 8.1% to 2,665, from 2,466 a year earlier. Limassol recorded the highest number of transactions at 1,499, followed by Nicosia with 1,065, Larnaca with 994, Paphos with 919, and Famagusta with 232. Domestic buyers accounted for 84% of transactions in Nicosia and around 60% in Limassol and Famagusta, while foreign buyers dominated in Paphos, accounting for 75% of sales. The Larnaca market was broadly balanced between domestic and overseas buyers. Mortgage lending for home purchases rose 24.5% year-on-year in the first quarter of 2026, with net new lending reaching 353.6 million euros compared with 284.1 million euros in the same period of 2025, according to the CBC’s monetary and financial statistics. The weighted average mortgage interest rate fell to 3.15% in March 2026 from 3.53% in March 2025, reflecting the gradual easing of European Central Bank monetary policy since mid-2024. Supply: permits surge but labour shortages persist Building permits for residential units rose 79.2% year-on-year in January and February 2026, climbing from 1,932 units to 3,463, according to data from the Statistical Service of Cyprus. The CBC said supply was expected to continue growing gradually in the medium term. A construction activity diffusion index cited by the CBC remained in positive territory in the first quarter of 2026 for the tenth consecutive quarter, at 3.2, consistent with the gradual increase in supply. Construction materials prices rose marginally by 0.9% year-on-year in the first quarter of 2026, remaining at historically elevated levels partly as a result of geopolitical developments that disrupted supply chains, according to the CBC. Labour shortages in the construction sector are also exerting upward pressure on property prices, with wages in the sector remaining significantly above pre-pandemic levels, the CBC said. A property price expectations index from the European Commission’s Business and Consumer Survey rose to 32.8 in the first quarter of 2026 from 24.6 in the same period of 2025, indicating that a larger proportion of respondents expect property prices in Cyprus to rise further over the following three months, according to the CBC. 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