Cyprus' real estate market continues to show steady growth. In 2026, apartment prices are still rising across virtually every region of the island. The main drivers remain increasing construction costs, strong demand from both local and international buyers, and a limited supply of new housing.
According to the Cyprus Statistical Service, the Construction Materials Price Index increased by 3% in June 2026 compared to June 2025. This directly affects the cost of new developments and is gradually reflected in the prices of completed residential properties.
Apartment Prices Have Increased by Nearly 11%
According to the Central Bank of Cyprus, apartment prices rose by 10.8% year-on-year in the first quarter of 2026, while private house prices increased by 3%. Experts note that apartments are appreciating significantly faster than houses. The main reason is strong demand for compact homes, particularly in urban and coastal areas, where buyers view real estate both as a place to live and as an investment. According to Ask Wire data for the first half of 2026, the average apartment prices by region are:
- Limassol — approximately €363,000;
- Paphos — approximately €262,000;
- Nicosia — approximately €183,000;
- Larnaca — approximately €171,000;
- Famagusta — approximately €150,000.
Limassol remains the island's most expensive property market thanks to its large-scale waterfront developments, luxury residential projects, and strong activity from foreign investors.
Larnaca Leads in Price Growth
Larnaca is currently experiencing the fastest growth in apartment prices. According to Ask Wire CEO Pavlos Loizou, prices in the city have increased by approximately 8.9% over the past year.
During the first six months of 2026, 1,521 apartment transactions were registered in Larnaca—the highest figure among all regions of Cyprus. Experts attribute this growth to several factors. Larnaca remains significantly more affordable than Limassol, is undergoing rapid transformation through major infrastructure upgrades and large-scale investment projects, and continues to benefit from strong demand among foreign buyers. Another advantage is the growing supply of modern, energy-efficient apartments near the sea, which remain highly attractive to both buyers and tenants.
Why Apartment Prices Keep Rising
The increase in prices is driven not only by strong demand but also by rising construction costs. Over the past year, metal products have become 5% more expensive, timber and insulation materials have increased by 4%, while electrical and engineering equipment has risen by 3%. Construction costs also continue to be affected by global steel and copper prices, energy costs, logistics expenses, and the high level of construction activity across Cyprus.
According to Loizou, modern one- and two-bedroom apartments located close to the sea and built to high energy-efficiency standards remain the most sought-after properties. In 2025, Cyprus' real estate market reached its highest level in the past 17 years, with total transaction volume amounting to €4.7 billion. Growth has continued into 2026: in the first quarter alone, the number of registered property sale contracts increased by 13.8%. Foreign buyers continue to play a significant role—for example, they account for around 75% of all transactions in Paphos. At the same time, domestic demand remains strong, supported by a 24.5% increase in mortgage lending and a decline in the average housing loan interest rate to approximately 3.15%.
What to Expect for the Rest of 2026
According to market experts, apartment prices in Cyprus are expected to continue rising, although at a more moderate pace. Across the island, residential property values are forecast to increase by around 3–5% over the year. Modern energy-efficient apartments could appreciate by 4–6%, while Larnaca is expected to maintain its position as one of the country's fastest-growing real estate markets. At the same time, housing affordability, the limited supply of new developments, and ongoing geopolitical uncertainty are likely to prevent sharper price increases. As a result, the market is expected to remain stable, with no signs of a significant decline in property prices.