Limassol and Paphos behind two-thirds of Cyprus property sales growth

Cyprus’ property market continued to grow in August, with sale contracts reaching 13,288 during the first eight months of 2026 and activity staying above last year’s levels in every month so far. A total of 1,241 sale contracts were lodged with land registry offices during August, up 10 per cent from 1,128 a year earlier, according to the latest department of lands and surveys figures. Although activity was considerably lower than July, when contracts crossed the 2,000 mark for the first time this year, August is traditionally a quieter month for property transactions. Consequently, contracts filed between January and August reached 13,288, compared with 11,689 during the same period of 2025, representing growth of 14 per cent and an additional 1,599 contracts. The monthly figures also show a market that has stayed consistently ahead of last year. Sales rose by 11 per cent in January, 12 per cent in February, 18 per cent in March, 15 per cent in April and 5 per cent in May. Growth accelerated to 27 per cent in June, before easing to 11 per cent in July and 10 per cent in August. However, as in the previous month, much of the expansion was concentrated in Limassol and Paphos. Together, the two districts accounted for 1,070 of the 1,599 additional contracts recorded across Cyprus during the eight months, or about 67 per cent of the total increase. Limassol remained the country’s largest property market, although August brought its first annual decline of 2026. A total of 395 contracts were lodged during the month, down 5 per cent from 416 in August last year. Even after the fall, the district’s eight-month performance remained strong. Contracts reached 4,354, compared with 3,720 a year earlier, an increase of 17 per cent. Limassol alone contributed 634 of the additional contracts recorded nationwide. Meanwhile, Paphos overtook Limassol in terms of percentage growth over the eight-month period. Sales in the district reached 267 in August, up 20 per cent from a year earlier, taking the January-to-August total to 2,654 contracts, compared with 2,218 during the corresponding period of 2025. This represented growth of almost 20 per cent, the strongest among the five districts, and an additional 436 contracts. Paphos had recorded its only annual decline of the year in March, but sales have since risen strongly, including increases of 41 per cent in April, 24 per cent in May, 28 per cent in June, 15 per cent in July and 20 per cent in August. Larnaca recorded the strongest performance in August, with 299 contracts compared with 221 a year earlier, an increase of 35 per cent. Its eight-month total reached 2,898, up 13 per cent from 2,564 during the same period last year. This meant the district added 334 contracts and remained ahead of its 2025 levels throughout every month of the year so far. Nicosia also returned to clearer growth after sales were virtually unchanged in July. A total of 225 contracts were filed in August, up 8 per cent from the same month last year. Over the eight months, the capital recorded 2,789 contracts, compared with 2,640 in 2025, an increase of almost 6 per cent. While this was the slowest rate of growth among the five districts, it still represented 149 additional contracts. Famagusta, meanwhile, continued the weaker pattern seen since May. August sales fell by 8 per cent, with 55 contracts compared with 60 a year earlier, marking the district’s fourth consecutive month of annual declines. Nevertheless, its stronger start to the year kept the eight-month result in positive territory. Contracts reached 593, compared with 547 during the same period of 2025, representing growth of just over 8 per cent. The figures therefore continue to show a market growing at different speeds. Every district remained ahead of last year over the eight months, but Paphos and Limassol produced most of the additional activity, while Nicosia and Famagusta recorded considerably more modest gains. Foreign buyers are also continuing to play a major role. The latest land registry figures show that buyers from other EU countries and outside the bloc accounted for around 47 per cent of sale contracts during the first eight months of the year. Sales to EU buyers rose by 23 per cent compared with the same period of 2025, while those involving non-EU nationals increased by 19 per cent. Demand from EU buyers grew particularly strongly in Paphos and Larnaca, while sales to non-EU buyers increased across all five districts. At the same time, the strength in transactions is continuing despite higher property and construction costs. The Central Bank of Cyprus (CBC) reported that residential property prices increased by 7.5 per cent year on year in the first quarter of 2026, with apartment prices rising by 10.8 per cent and house prices by 3 per cent. The bank attributed the increase mainly to continued demand from foreign buyers, alongside higher construction costs, while housing supply has been gradually increasing. Meanwhile, the latest Cystat figures show that construction material prices were 3.33 per cent higher in July than a year earlier. Across the first seven months of 2026, prices increased by 1.87 per cent, with metallic products and materials including wood, insulation, chemicals and plastics recording some of the strongest increases.