Cyprus’s new-build housing market saw a noticeable decline in activity in the second quarter of 2026. Sales of houses and apartments purchased off-plan fell by 42.2%, while their total value decreased by 46.6%.
According to Landbank Analytics, the market lost 960 sale agreements during the quarter. While 2,277 transactions worth a total of €748.6 million were registered in the first quarter, only 1,317 transactions worth €400.1 million were recorded in the second quarter. At the same time, the decline in demand has been accompanied by a change in the structure of the market: buyers are increasingly choosing properties priced below €300,000. This does not indicate a complete halt in Cyprus’s property market, but rather a noticeable redistribution of demand.
Average property prices fall as the affordable segment grows
The average transaction value in the second quarter fell by 7.6% to €303,808. The median price decreased by 6.3% to €224,850. The difference between the average and median prices shows how strongly expensive properties influence the overall statistics. The extremes of the market also changed: the cheapest registered transaction increased from €42,000 to €55,000, while the most expensive transaction fell from €13 million to €4.69 million.
Houses became particularly cheaper. The average transaction price for an apartment decreased by 5.5% to €262,574, while the average price for a house fell by as much as 12.7% to €501,800. The main change occurred in the structure of demand. The share of properties priced below €300,000 increased by 5.5 percentage points, reaching 68.1% of all sales. The €300,000–€499,999 segment declined from 27.1% to 23.1%, losing 4 percentage points.
Demand grew most noticeably for housing priced between €150,000 and €199,999: the share of such properties increased from 21% to 24.8%. The €200,000–€299,999 category also expanded, from 27.1% to 28.2%. The segment below €150,000 changed only slightly. Overall, the main trend of the second quarter was a shift by buyers toward more affordable price categories.
Nicosia strengthens its position, while Limassol remains the leader by value
The geography of the market also changed. Nicosia’s share of the total number of transactions increased from 26.7% to 34.5%, while its share in value terms rose from 17.1% to 26.2%. The average transaction price in the capital increased by 9.3%, while the median price remained at €185,000. This points to relatively stable demand for housing in the more affordable segment.
Limassol still ranks first in terms of the total value of sales, although its share fell from 40.8% to 32.4%. High property prices in the city make it particularly sensitive to weaker demand for expensive real estate.
Larnaca maintained a median price of €190,000. Paphos, by contrast, remained the district with the highest median value at €352,500. The overall picture does not resemble a sharp collapse across all segments. In the first quarter of 2026, the RICS Cyprus Property Price Index still described the country’s real estate market as broadly stable, noting relatively small price changes in most areas and property categories.
The most active and resilient areas
By total number of registered sale agreements, Limassol was the most active individual market in the second quarter with 129 transactions. It was followed by Aradippou with 122 transactions, Lakatamia with 92 and Paphos with 79. Strovolos and Larnaca each recorded 71 transactions, while Livadia and Latsia completed the list of the eight most active markets.
As Landbank notes, the number of transactions alone does not show which areas coped better with the overall downturn. Sales dynamics are equally important. From this perspective, Lakatamia stands out in particular: the number of transactions there fell by only 14.8%. In Aradippou, the decline was 17.6%, while in Latsia it was 24%. These figures are especially notable against the overall market decline of 42.2% between the first and second quarters.
These areas therefore stand out not only for their relatively high number of transactions, but also for their ability to maintain demand during a period of significant market contraction. Their resilience may have been influenced by price levels, the type of properties available, location, and the balance between supply and demand.
According to Landbank, the statistics confirm that activity in the property market is distributed unevenly. In some areas, demand remains more stable or available supply better matches buyers’ financial capabilities.
Areas where sales increased
Agios Dometios was one of the few markets where the number of transactions actually increased in the second quarter. Sales of new apartments and houses rose by 22.6%, while the median value increased by 7.7% to €154,000. In Dali, the number of transactions increased by 15.8%, from 19 to 22. The median value rose by 8.1% to €194,500.
Nicosia Municipality posted an almost stable result: the number of sale agreements fell by only 4.4%. However, their total value increased by 31.3%, while the average value per transaction jumped by 37.4%. Ypsonas was also among the most resilient areas, with the number of transactions declining by only 9.1%.
Cyprus’s premium segment remains active
Despite the overall decline in the number of transactions, the high-end property market in certain areas continued to show strong activity. Germasogeia is a clear example. In the second quarter, 43 transactions worth a total of €27.6 million were registered there. The average price stood at €640,970, while the median was €400,000. In the first half of the year, 132 transactions worth a total of €89.1 million were completed in Germasogeia, with a median price of €472,500.
Even higher figures were recorded in Potamos Germasogeias. In the second quarter, the median transaction value reached €600,000, while the average rose to €838,783, highlighting the clearly premium character of the area. Peyia ranked first among areas with at least 10 registered transactions by median property value. It reached €855,000, while the average transaction value exceeded €1 million.
The true attractiveness of an area is determined by a combination of sales volume, market resilience, median value and the types of housing available, said Andreas Christoforides, CEO of Landbank Group.