The Cypriot residential property market continued its upward trajectory in the first half of 2026, buoyed by consistent demand from foreign buyers, escalating construction expenses, and robust development in coastal cities. This trend is highlighted by Open4business, referencing research from Ask Wire.
2
► Read the “Minfin” page on Facebook: main financial news
What is the cost of apartments in Cyprus
The average price for a sold apartment in Limassol during January-June hovered around €363,000. In Paphos, this figure was estimated at €262,000, in Nicosia at €183,000, in Larnaca at €171,000, and in the Famagusta district at €150,000.
Data from the Central Bank of Cyprus corroborates the sustained upward trend. In the first quarter of 2026, apartment prices saw a 10.8% increase compared to the same period last year, while private houses rose by 3%, and the overall residential property index grew by 7.5%.
The regulator attributes the price hikes primarily to strong demand from international purchasers, rising construction costs, and a currently limited supply of housing. The report was released on June 23, 2026.
Limassol remains the most premium market, featuring a significant concentration of luxury beachfront complexes, high-rise residential buildings, and properties aimed at global investors. Paphos ranks second in terms of average apartment prices.
Larnaca demonstrated the most notable growth dynamic. According to Ask Wire’s assessment, apartments in the city appreciated by nearly 8.9% over the year, with 1,521 thousand apartment transactions recorded in the first half. Demand is fueled by prices lower than in Limassol, ongoing urban infrastructure development, proximity to the airport, and the interest of foreign buyers in new seaside properties.
In the first quarter of 2026, foreign nationals accounted for approximately 43.4% of all registered real estate sale agreements in Cyprus, up from 40.1% for the entirety of 2025. Buyers from outside the EU constituted 29.1% of the market. Official statistics from the Cyprus Department of Lands and Surveys are published with a breakdown of buyers from the EU and third countries but do not provide a comprehensive up-to-date ranking by nationality.
Who is buying property in Cyprus
Key foreign buyer groups include citizens of the United Kingdom, Russia, Israel, Lebanon, and Greece, although their presence varies significantly by region.
In Paphos, demand from Britons, Russians, and Israelis is particularly pronounced. Foreign buyers occasionally account for up to three-quarters of local deals. Britons are more inclined to purchase homes for relocation, holidays, or extended stays, whereas Russian and Israeli demand is largely linked to capital relocation, business, and family moves.
Larnaca primarily attracts buyers from Israel and Lebanon. For them, the city is appealing due to its transport accessibility, relatively low entry threshold, and geographical proximity to Eastern Mediterranean countries.
In Limassol, prominent foreign buyers continue to be citizens of Russia, Israel, and Greece. Nicosia relies more heavily on domestic demand, with Greeks, Britons, and Australians standing out among foreign buyers there. In the Famagusta district, buyers from the United Kingdom, Greece, and Lebanon play a significant role.
Chinese investors, who were actively present in the Cypriot market between 2020 and 2024, have become less noticeable in recent regional rankings. It’s important to note that official statistics may underestimate foreign capital participation, as purchases made through companies registered in Cyprus or other EU countries might be classified as domestic transactions.
The market is also supported by the recovery in mortgage lending: the volume of mortgage loan disbursements increased by 24.5%, while the average interest rate decreased to approximately 3.15%. New one- and two-bedroom apartments with high energy efficiency, situated near the coast, are in highest demand.
Ask Wire forecasts that by the end of 2026, Cyprus real estate will see an average price increase of an additional 3-5%, with new energy-efficient apartments rising by 4-6%. Larnaca is likely to continue experiencing growth rates exceeding the national average.
The primary limiting factors remain the declining affordability of housing for local residents, a shortage of new supply, and geopolitical uncertainty in the Eastern Mediterranean.