Cyprus house prices rise 8.5% as foreign demand strengthens the Q2 market

Cyprus entered the second quarter with a faster housing-price trend. The Central Bank of Cyprus reported that its general Residential Property Price Index reached 109.7, with residential prices 8.5% higher than a year earlier and 2.4% above the first quarter. Apartment prices rose 8.9% year on year, while house prices increased 5.8%.

The increase was broad across the island, although the pace differed by district. Famagusta recorded the strongest annual gain at 10.0%, followed by Larnaca at 9.8% and Paphos at 9.6%. Limassol prices were 7.8% higher and Nicosia 5.7% higher. The central bank said annual price growth accelerated in every district except Limassol.

Demand also strengthened. A total of 5,298 sale contracts were deposited with the Department of Lands and Surveys during the quarter, up 15.4% from 4,592 a year earlier. According to the CBC, the increase came mainly from foreign buyers, while domestic demand also rose at a slower pace. That distinction matters because Cyprus remains unusually exposed to international demand in several coastal markets.

Supply is responding, but with a lag. The CBC said approved residential units covered by building permits reached 8,978 in the first five months of 2026, 63.7% more than the 5,484 units recorded in the same period of 2025. The bank also pointed to higher construction costs as one factor supporting prices, even as housing supply gradually increases.

For buyers and investors, the Q2 data show a market where transaction demand and prices are rising at the same time as the future supply pipeline expands. The key question is therefore not whether Cyprus is still growing, but whether new completions can catch up with demand quickly enough to prevent further pressure on prices in the strongest coastal districts.