The first half of 2026 has become one of the strongest periods for Cyprus' property market in recent years. According to the Department of Lands and Surveys, residential property transactions continued to increase across every region of the island. Between January and June, a total of 10,007 sale contracts were registered, representing a 14.6% increase compared with the same period in 2025, when 8,729 transactions were recorded.
Experts attribute the strong demand to several key factors, including continued interest from foreign investors, the development of new residential projects, a stable labour market, and ongoing construction aimed at both owner-occupiers and investment buyers. Despite higher interest rates across Europe, Cyprus remains one of the most active real estate markets in the Eastern Mediterranean.
Limassol Remains the Market Leader, While Paphos Records the Fastest Growth
Limassol once again recorded the highest number of property transactions. During the first six months of 2026, 3,264 sale contracts were registered, compared with 2,725 during the same period last year. This represents annual growth of 19.8%, reinforcing the city's position as Cyprus' leading business and investment hub.
Nicosia recorded 2,141 transactions, up from 2,010 in the first half of 2025. The capital posted more moderate but steady growth of 6.5%, driven primarily by strong demand from local buyers.
Larnaca continues to strengthen its position in the property market. The number of sales increased from 1,948 to 2,163, representing annual growth of 11%. Demand in the region continues to benefit from major infrastructure projects, waterfront redevelopment, and urban regeneration initiatives.
Paphos recorded the strongest growth among Cyprus' major cities. During the first half of the year, 1,992 transactions were registered, compared with 1,653 a year earlier, representing growth of 20.5%. The district remains one of the most attractive destinations for overseas buyers thanks to its mild climate, well-developed tourism infrastructure, and ongoing construction of new residential developments.
The free Famagusta district also recorded positive results. The number of transactions increased from 393 to 447, representing annual growth of 13.7%.
June Became the Strongest Month of the Year
The market delivered particularly impressive results in June. A total of 1,964 sale contracts were registered during the month, compared with 1,544 in June 2025. This represents annual growth of 27% and marks the strongest monthly increase recorded so far in 2026.
Limassol once again led the market, with the number of transactions soaring by 64%, from 444 to 727. Experts attribute this surge to the completion of several major residential developments and continued strong investment activity.
Sales in Paphos increased by 28%, rising from 282 to 361 transactions. Nicosia recorded 392 sales compared with 355 a year earlier, representing growth of 10%. Larnaca also maintained positive momentum, with transactions increasing from 394 to 416, an annual rise of 6%. The only district to record a slight decline was the free Famagusta area, where 68 transactions were registered in June compared with 69 during the same month last year, a decrease of just 1%.
Why the Market Continues to Grow
Analysts note that the results for the first half of 2026 significantly exceed not only last year's performance but also pre-pandemic levels recorded in 2019. This demonstrates the continued resilience of Cyprus' property market.
The sector continues to benefit from sustained foreign investment, international business relocation programmes, the development of new residential neighbourhoods, and ongoing improvements to urban infrastructure. Particularly strong growth is being seen in the market for modern apartments and energy-efficient homes that comply with the latest European environmental standards.
Experts believe that if current economic conditions remain favourable, Cyprus' property market is well positioned to finish 2026 with one of its strongest performances of the past decade, while continued high demand is expected to drive the launch of new construction projects across the island.