**Cyprus House Prices Rise at Slower Pace in First Quarter of 2026**
The latest data from the Cyprus Statistical Service (Cystat) reveals that house prices in Cyprus experienced a slower annual increase in the first quarter of 2026, although they did rise compared to the previous quarter. The House Price Index (HPI) reached 102.95 points during this period, reflecting a 1.6 percent increase from the fourth quarter of 2025 and a 3.4 percent rise compared to the same quarter in the previous year.
This latest report indicates a shift in the trend of house price increases, which were more pronounced in previous quarters. For context, the annual increases were recorded at 4.7 percent in the first quarter of 2025, 2.9 percent in the second, 4.2 percent in the third, and 6 percent in the fourth quarter of 2025. The figures suggest a deceleration in the year-on-year growth rate as 2026 begins.
In terms of quarterly performance, the House Price Index showed a positive trend after a series of fluctuations. Following a notable 4.2 percent rise in the first quarter of 2025, the index experienced a decline of 1.8 percent in the second quarter. It then rebounded with an increase of 3.7 percent in the third quarter, remained stable in the fourth quarter of 2025, and finally recorded a 1.6 percent increase in the first quarter of 2026.
Breaking down the data further, the sub-index for new dwellings indicated a continued upward trajectory, climbing to 103.25 in the first quarter of 2026 from 102.06 in the previous quarter. This sub-index has shown a consistent recovery since it fell to 96.26 in the second quarter of 2025, rising to 101.71 in the third quarter and 102.06 in the fourth quarter before reaching its current level.
Conversely, the sub-index for existing dwellings displayed a more erratic pattern. It rose to 102.51 in the first quarter of 2026, up from 99.82 in the fourth quarter of 2025. However, this segment had previously dipped from 98.75 in the first quarter of 2025 to 100.84 in the second quarter, before experiencing a decline to 100.59 in the third quarter and 99.82 in the fourth quarter.
Cystat's House Price Index measures changes in the average price of residential properties, encompassing both new and existing homes, and includes the land component of these properties. The data is derived from the Department of Lands and Surveys and pertains to areas under the control of the Republic of Cyprus.
As the housing market in Cyprus continues to evolve, these statistics provide valuable insights into the trends affecting property prices. The slower annual increase in house prices may reflect broader economic conditions and shifts in demand, which will be closely monitored by stakeholders in the real estate sector.