Cyprus Property Market Q1 2026: Apartments Up 10.8% a Year
Residential property prices in Cyprus rose 7.5% year on year in the first quarter of 2026, with apartments up 10.8% and houses 3%, according to the Central Bank of Cyprus. Foreign buyers drove much of the demand.
By RealDeal team · 4 min read · Published 25 Jun 2026 · Updated 8 Oct 2026
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Cyprus property prices kept rising in the first quarter of 2026, and the gap between apartments and houses widened. The Central Bank of Cyprus (CBC) Residential Property Price Index, published on 23 June, rose 7.5% year on year, with apartment prices up 10.8% and house prices up 3%. Valuation data from RICS and contract figures from the Department of Lands and Surveys (DLS) point the same way: demand is strongest for apartments, and foreign buyers account for a growing share of purchases. This report brings the three sources together for buyers, investors and landlords.
Prices: apartments pull ahead
On a quarterly basis the CBC index rose 2.3%, after 2.4% in the last quarter of 2025. House prices picked up speed quarter on quarter (+1.5%), while apartment growth slowed to 2.4%, but over the year apartments remained far ahead. According to the CBC, apartment prices nationwide are now 27% above their 2010 level, and in Limassol 53% higher.
The central bank attributed the continued rise to strong demand, mainly from foreign buyers and to a lesser extent from domestic buyers, together with rising construction costs, while housing supply is gradually increasing.
By district, annual growth accelerated in Nicosia, to 2.8%, and in Larnaca, to 8.9%, while it slowed in Limassol and Paphos.
| CBC index, Q1 2026 | Change |
|---|---|
| All homes, year on year | +7.5% |
| All homes, quarter on quarter | +2.3% |
| Apartments, year on year | +10.8% |
| Houses, year on year | +3.0% |
| Larnaca, year on year | +8.9% |
| Nicosia, year on year | +2.8% |
Valuations: a calmer picture from RICS
The RICS Cyprus Property Index with KPMG in Cyprus for Q1 2026, published in May, showed very marginal quarterly movements across most districts and property types. Apartments were again the firmest segment, with the largest quarterly increases in Paphos and Famagusta and more modest gains in Nicosia and Limassol. Houses rose in Famagusta and Limassol, with little or no change elsewhere.
RICS tracks valuations of standard notional properties in the main urban centres, so its figures are not directly comparable with the CBC index. Over the year, it recorded the following changes:
| Property type | Value, y/y | Rent, y/y | Yield Q1 2026 (Q1 2025) |
|---|---|---|---|
| Apartments | +4.09% | +5.10% | 5.44% (5.39%) |
| Houses | +3.60% | +2.79% | 2.97% (2.99%) |
| Warehouses | +3.48% | +2.58% | 4.20% (4.23%) |
| Offices | +2.91% | +3.03% | 5.60% (5.59%) |
| Retail | +0.72% | +0.66% | 5.77% (5.78%) |
| Holiday apartments | +3.66% | +2.05% | 5.67% (5.76%) |
| Holiday houses | +2.42% | +2.75% | 2.80% (2.79%) |
Apartment rents rose faster than apartment values, and the apartment yield edged up from 5.39% to 5.44%. In the accompanying release, RICS chief economist Simon Rubinsohn noted that sentiment in the RICS Cyprus commercial property survey had dipped amid uncertainty, although this was not yet visible in the price data.
Demand: foreign buyers drive sales
DLS figures show 4,709 sale contracts in January–March 2026, up 14% from 4,137 a year earlier. As cited by the CBC, sales to foreign buyers rose 22.3% to 2,044, while sales to domestic buyers rose 8.1% to 2,665. Foreign buyers thus accounted for about 43% of contracts in the quarter.
Limassol remained the largest market with 1,499 contracts, while Famagusta grew fastest from a small base (+36%), according to DLS data.
Lending and supply
Net new housing loans rose 24.5% year on year to €353.6 million in the first quarter, Cyprus Mail reported from the CBC data. On the supply side, residential units covered by building permits jumped 79.2% in January–February 2026, to 3,463 from 1,932 a year earlier. Building permits are a leading indicator, so this points to more new homes entering the market in the coming years.
What this means for buyers and investors
- Apartments lead on every measure: prices (+10.8% by the CBC, +4.09% by RICS), rents (+5.10%) and sales demand, especially from abroad.
- Houses are rising more slowly, at 3% year on year by the CBC measure.
- For landlords, apartment rents growing faster than values have nudged yields up to around 5.4%.
- More supply is coming: the surge in building permits adds to the gradual supply increase the CBC already describes.