Cyprus' residential property market continues to demonstrate positive momentum. According to estimates by the Statistical Service of Cyprus, housing prices increased by 3.4% in the first quarter of 2026 compared with the same period a year earlier. This marks the 17th consecutive quarter of rising property prices, highlighting sustained demand for housing despite persistently high interest rates and increasing construction costs.
The House Price Index reached 102.95 points, up from 99.58 points a year earlier. Compared with the fourth quarter of 2025, the index also increased by 1.6%. The last annual decline in residential property prices in Cyprus was recorded in the fourth quarter of 2021.
Both New-Build and Existing Homes Continue to Become More Expensive
Price growth was recorded across both the new-build and resale markets. The index for new residential properties reached 103.25 points in the first quarter of 2026, compared with 102.06 points in the previous quarter. Existing homes also became more expensive, with the corresponding index rising to 102.51 points from 99.82 points in the fourth quarter of 2025.
Experts note that demand continues to be supported by several factors, including a limited supply of new housing, strong interest from foreign buyers, ongoing infrastructure development, and robust demand from investors purchasing properties for both long-term and short-term rentals.
Data from the European statistical agency Eurostat fully aligns with the figures published by Cyprus' statistical authorities. According to Eurostat, housing prices in Cyprus also increased by 3.4% year-on-year and by 1.6% quarter-on-quarter in the first quarter of 2026. However, the pace of growth has slowed somewhat. For comparison, annual price growth stood at 6.0% in the fourth quarter of 2025, 4.2% in the third quarter of 2025, and 2.9% in the second quarter of 2025. Looking at quarterly changes, prices declined by 1.8% in the second quarter of 2025, rebounded by 3.7% in the third quarter, and remained virtually unchanged in the fourth quarter.
How Cyprus Compares with the Rest of Europe
Despite its steady growth, Cyprus remains below the European average. In the first quarter of 2026, housing prices across the euro area increased by an average of 4.7% compared with the same period a year earlier, while the European Union as a whole recorded annual growth of 5.1%. Quarterly growth also exceeded Cyprus' performance, reaching 1.0% in the euro area and 1.2% across the EU.
Among all countries that submitted data to Eurostat, only Finland recorded an annual decline in housing prices (-2.0%). The strongest annual growth was observed in Portugal (+17.8%), Bulgaria (+14.8%), and Slovakia (+14.4%). On a quarterly basis, prices declined in only four countries: Belgium (-0.8%), Finland (-0.8%), France (-0.6%), and Hungary (-0.5%). The strongest quarterly increases were recorded in Bulgaria (+6.2%), Portugal (+3.8%), and Slovakia (+3.6%).
What Lies Ahead for the Cyprus Property Market?
Analysts believe that Cyprus remains one of the most resilient real estate markets in the Mediterranean region. Although price growth has gradually slowed compared with the record levels seen in 2024–2025, the market's underlying fundamentals remain strong. Limited supply of high-quality housing, continued interest from foreign investors, major infrastructure developments, and ongoing population growth continue to support demand for apartments and houses.
At the same time, experts expect the market to shift toward more moderate growth during the second half of 2026. This is largely due to high construction costs, expensive borrowing, and a gradual increase in the supply of new housing. Nevertheless, analysts do not currently anticipate a sharp decline in prices, as demand for Cypriot real estate continues to exceed supply across many parts of the island, particularly in Limassol, Paphos, and Larnaca.