Cyprus' real estate market continues to demonstrate strong growth. According to Eurostat, residential property sales on the island increased by 13.6% in the first quarter of 2026 compared with the same period in 2025. This is the highest growth rate recorded among all European Union member states.
Experts note that strong demand for housing continues to support the Cypriot economy by stimulating the construction industry, banking sector, legal services, real estate market, and property management.
Cyprus outperformed every EU country
In the first quarter of 2026, Cyprus ranked first in the European Union for residential property sales growth. While the Cypriot market continued to expand rapidly, several European countries recorded significant declines in housing transactions. The sharpest decreases were reported in:
- Croatia –42.2%;
- Bulgaria –18.5%;
- Finland –11.8%.
Housing sales increased in only seven EU countries. After Cyprus, Denmark ranked second with growth of 8.4%. The figures also demonstrate that Europe's property market remains highly uneven. For example, Hungary (+23.5%) and Austria (+20.2%) recorded the strongest growth in the fourth quarter of 2025, while Slovenia led the rankings in the third quarter of 2025 with an increase of 48.6%.
Existing homes remain the most popular choice
According to Eurostat, the majority of residential property transactions across Europe continue to involve existing homes rather than new developments. In countries where statistics distinguish between newly built and existing properties, resale homes consistently account for a much larger share of sales. This suggests that buyers continue to favour completed houses and apartments, even though demand for new housing remains strong. Among newly built homes, the fastest sales growth was recorded in:
- Luxembourg +36.2%;
- Hungary +33.6%.
The largest declines in new home sales were recorded in:
- Finland –22.3%;
- Slovenia –11.6%.
In the resale market, the strongest growth was recorded in:
- Slovenia +34.0%;
- Lithuania +23.0%.
Sales of existing homes declined only in Croatia (–7.2%), Bulgaria (–5.0%), and Ireland (–0.4%).
Why Cyprus' property market continues to grow
According to market analysts, the continued growth of Cyprus' property market is being driven by several factors. These include strong demand from foreign buyers, stable interest from local purchasers, the development of new residential projects, and the island's attractiveness as a place to live, work, and invest. Cyprus also remains one of the most popular destinations for property buyers from Europe, the United Kingdom, and the Middle East, supported by its favourable tax regime, high level of safety, mild climate, and ongoing infrastructure development.
More broadly, the eurozone housing market continues to recover following the slowdown of recent years. Eurostat reports that after residential property prices declined by 1% in 2023, they increased by 2.2% in 2024, while the total number of housing transactions rose by 4.2%. The recovery accelerated in 2025, with house prices increasing by a further 5.3% and the overall value of residential property transactions rising by 16.5%. Experts believe that if current economic conditions remain favourable, Cyprus' real estate market will continue to be one of the fastest-growing in the European Union throughout 2026.