Residential property prices in Cyprus have continued to rise for several consecutive years. According to new Eurostat data published on July 3, housing prices on the island increased by 3.4% in the first quarter of 2026 compared with the same period in 2025. Compared with the fourth quarter of 2025, prices rose by 1.6%.
Despite the ongoing increase, analysts note that the pace of growth has gradually slowed following the record gains seen last year.
Prices Continue to Rise, but the Market Is Becoming More Stable
According to Eurostat, annual housing price growth reached 3.4% in the first quarter of 2026, compared with 6.0% in the fourth quarter of 2025. For comparison, prices increased by 4.2% year-on-year in the third quarter of 2025 and by 2.9% in the second quarter.
Looking at quarterly performance, the market recovered quickly after prices fell by 1.8% in the second quarter of 2025. Housing prices rose by 3.7% in the third quarter, remained virtually unchanged in the fourth quarter, and increased again by 1.6% at the beginning of 2026. Experts attribute the continued growth to strong housing demand, limited supply of new developments, and sustained interest from foreign buyers, particularly in Limassol, Paphos, and Larnaca.
Comparison with Other EU Countries
Despite rising prices, Cyprus remained below the European average. In the first quarter of 2026, housing prices increased by 4.7% year-on-year across the euro area and by 5.1% across the European Union. In the previous quarter, annual growth stood at 5.1% in the euro area and 5.4% across the EU. On a quarterly basis, prices rose by 1.0% in the euro area and 1.2% across the European Union, both slightly below Cyprus' quarterly increase of 1.6%.
Among EU countries, Portugal recorded the strongest annual growth, with housing prices rising by 17.8%. It was followed by Bulgaria at 14.8% and Slovakia at 14.4%.
Finland was the only country where housing prices declined compared with the previous year, falling by 2.0%.
Comparing the first quarter of 2026 with the previous quarter, housing prices declined in only four countries. Prices fell by 0.8% in both Belgium and Finland, by 0.6% in France, and by 0.5% in Hungary. The strongest quarterly increases were recorded in Bulgaria (+6.2%), Portugal (+3.8%), and Slovakia (+3.6%).
What This Means for Buyers and the Cyprus Property Market
Although the Cyprus property market continues to show positive momentum, experts increasingly believe it is entering a more stable phase of growth. After several years of rapid price increases, the market is now expanding at a more moderate pace, making it potentially more predictable for both local buyers and international investors.
At the same time, strong demand for modern apartments and houses, limited new housing supply, and Cyprus' continued appeal as a destination for living, holidays, and investment continue to support property values. As a result, analysts do not expect any significant decline in prices in the near future, although further market performance will depend on interest rates, construction activity, and the overall economic outlook in Europe.