Cyprus Property Market Q2 2026: Where Prices Grow Fastest
Residential property prices in Cyprus rose 8.5% year on year in the second quarter of 2026, according to the Central Bank of Cyprus, and 7.9% according to the Statistical Service. Famagusta, Larnaca and Paphos recorded the fastest growth.
By RealDeal team · 3 min read · Published 1 Oct 2026 · Updated 8 Oct 2026
Contents
Price growth in the Cyprus property market accelerated in the second quarter of 2026, according to three separate measures published between August and the end of September. The Central Bank of Cyprus (CBC) residential property price index rose 8.5% year on year, the Statistical Service (CYSTAT) house price index 7.9%, and the RICS valuation index recorded apartment values up 5.4%. Sales and rents also kept rising. This report compares the sources and shows where growth is strongest.
Three indices, one direction
| Measure | Published | Year on year | Quarter on quarter |
|---|---|---|---|
| CBC Residential Property Price Index | Late September | +8.5% | +2.4% |
| CYSTAT House Price Index (preliminary) | 30 September | +7.9% | +2.4% |
| RICS index, apartment values | August | +5.42% | — |
| RICS index, house values | August | +4.04% | — |
According to the CBC figures reported by Cyprus Mail, house prices rose 5.8% year on year and apartment prices 8.9%. That is a shift from the first quarter, when apartments were up 10.8% and houses only 3%: house prices are now catching up. The CBC attributed the rise mainly to strong demand from foreign buyers, continued domestic demand and higher construction costs.
CYSTAT's preliminary index, which covers new and existing dwellings and includes the land component, stood at 105.46 (2025 = 100). Annual growth accelerated sharply from 3.4% in the first quarter. The sub-index for new dwellings rose to 105.73 and for existing dwellings to 105.10.
Where prices grow fastest
According to the CBC, annual growth accelerated in every district except Limassol.
| District | All homes, y/y (CBC) |
|---|---|
| Famagusta | +10.0% |
| Larnaca | +9.8% |
| Paphos | +9.6% |
| Limassol | +7.8% |
| Nicosia | +5.7% |
The RICS Cyprus Property Index with KPMG in Cyprus also put Larnaca in front. Over the quarter Larnaca recorded the strongest growth in apartments, offices and warehouses, and together with Paphos it led growth in houses. Nicosia was flat for both apartments and houses.
Rents and yields
RICS data show rents rising faster than values for most residential property.
| Property type | Value, y/y | Rent, y/y | Yield Q2 2026 (Q2 2025) |
|---|---|---|---|
| Apartments | +5.42% | +7.36% | 5.51% (5.41%) |
| Houses | +4.04% | +5.30% | 3.01% (2.97%) |
| Warehouses | +4.22% | +1.96% | 4.15% (4.24%) |
| Offices | +3.69% | +4.00% | 5.63% (5.61%) |
| Retail | +0.66% | +1.22% | 5.78% (5.75%) |
| Holiday apartments | +5.18% | +6.43% | 5.82% (5.75%) |
| Holiday houses | +3.01% | +5.19% | 2.85% (2.79%) |
The apartment yield rose to 5.51% from 5.41% a year earlier. In the KPMG release, RICS chief economist Simon Rubinsohn noted that concerns about the impact on tourism had not materialised, with holiday-related assets continuing to rise in price.
Demand and supply
DLS data show 5,298 sale contracts in the second quarter, 15.4% more than a year earlier, and 10,007 in the first half of 2026 (+15%). The CBC said the increase came mainly from foreign buyers, with domestic demand rising more slowly. On the supply side, residential units covered by building permits reached 8,978 in January–May 2026, up 63.7% year on year.
What this means for buyers, investors and landlords
- Price growth is broadening: house prices accelerated and every district except Limassol sped up, with Famagusta, Larnaca and Paphos now growing fastest.
- Larnaca stands out across sources: it leads the RICS quarterly figures and is close to the top of the CBC table.
- For landlords, rents are outpacing values in most residential segments, lifting apartment yields to around 5.5%.
- More supply is coming: the sharp rise in building permits points to more new homes in the coming years.