According to data from the Central Bank of Cyprus, the overall Residential Property Price Index (RPPI) reached 109.7 points in the second quarter of 2026. Compared with the same period last year, the index increased by 8.5%, while compared with the first quarter of 2026 it rose by a further 2.4%.
The increase in prices is primarily linked to persistently strong housing demand. Foreign buyers are playing the main role, although activity among local buyers also remains noticeable. Another factor is the high cost of construction, which continues to increase.
The CBC also highlights the difference between houses and apartments. The House Price Index increased by 5.8% year on year, while the Apartment Price Index rose by 8.9%. At the same time, the pace of apartment price growth slowed somewhat compared with the previous period. Regional trends also varied. Price growth accelerated in most districts of Cyprus:
- Nicosia — 5.7%;
- Larnaca — 9.8%;
- Paphos — 9.6%;
- free areas of Famagusta — 10%;
- Limassol — 7.8%.
In Limassol, however, the pace of price growth slowed compared with the previous period.
Property demand increased by 15.4%
Buyer activity also remains high. According to the Department of Lands and Surveys, 5,298 property sale contracts were registered in Cyprus in the second quarter of 2026. This was 15.4% more than a year earlier, when the figure stood at 4,592 contracts.
The CBC attributes the increase primarily to stronger demand from foreign buyers. At the same time, the contribution from local buyers was also positive, although more moderate.
The Cyprus property market in 2026 is therefore characterised by both rising prices and a growing number of transactions. Demand for mortgage financing is another indicator of market activity: according to the CBC, net household demand for housing loans also increased in the second quarter of 2026.
Construction activity in Cyprus has accelerated significantly
Strong demand is gradually being reflected in supply as well. According to the Cyprus Statistical Service, 3,650 building permits were issued between January and May 2026, compared with 2,764 during the same period in 2025. This represents an increase of 32.1%. The total value of authorised projects increased by 43.9% — from €1.46 billion to €2.1 billion — while the permitted area rose by 43.1% to 1.70 million m2.
The volume of future housing stock is increasing particularly quickly. During the first five months of the year, permits provided for the construction of 8,978 residential units — 63.7% more than the 5,484 units recorded during the same period in 2025. Most of this increase came from apartment-building projects, which accounted for 6,667 planned apartments, 90.6% more than a year earlier.
May 2026 is also worth highlighting separately. During the month, 735 building permits were issued, 21.1% more than in May last year. They provide for the construction of 1,847 residential units, while the total value of the projects amounted to €428.2 million.
What is happening in the Cyprus property market
Overall, the Cyprus property market continued to expand across several indicators in the second quarter of 2026: prices are rising, the number of transactions is increasing, interest from foreign buyers remains strong and construction activity is accelerating.
At the same time, the increase in the number of permits primarily represents growth in future supply rather than the immediate arrival of the same number of completed properties on the market. A building permit does not guarantee that a project will be completed in the near future. As a result, the Cyprus housing market remains active in 2026: strong demand continues to support prices, while developers are simultaneously increasing the volume of new construction.