Cyprus’ residential property market continues to demonstrate solid momentum, reinforcing its appeal to both private buyers and international investors. First-quarter 2026 data released by the Central Bank of Cyprus confirms sustained demand, rising property values, and robust mortgage activity, despite ongoing supply-side constraints.
During the first three months of 2026, the overall Residential Property Price Index increased by 7.5% compared with the same period last year. Apartments once again led the market, recording an annual price increase of 10.8%, while the value of detached houses rose by 3%. The long-term trend remains equally impressive: compared with the 2010 baseline, apartment prices across Cyprus are now 27% higher, while in Limassol they have surged by 53%, highlighting the sustained demand for the island’s most liquid residential assets.
International investment remains one of the market’s primary growth drivers. During the first quarter, foreign buyers acquired 2,044 residential properties, representing a 22.3% increase year-on-year. By comparison, transactions involving domestic buyers rose by 8.1%. Paphos continues to stand out in particular, with international purchasers accounting for approximately 75% of all residential property acquisitions in the district, underscoring its enduring appeal to overseas investors.
The broader market also maintained a strong pace of growth. Between January and March 2026, a total of 4,709 property transactions were registered across the island, marking a 13.8% increase compared with the first quarter of 2025. Limassol retained its position as Cyprus’ largest property market, recording 1,499 transactions and continuing to lead the country in overall sales activity.
The mortgage market has provided additional support for demand. The volume of new residential mortgage lending increased by 24.5%, reflecting both strong buyer confidence and improved access to financing. At the same time, the average mortgage interest rate declined from 3.53% to 3.15%, making property purchases more accessible for both local residents and international investors.
Supply is also gradually expanding. During the first two months of 2026, the number of new residential units receiving planning approval increased by nearly 80%. This is expected to contribute to a larger pipeline of new developments and help improve market balance over the medium term.
Despite the increase in future supply, there are currently few signs of downward pressure on prices. Elevated construction costs, ongoing shortages of skilled labour, and sustained demand continue to support pricing across the residential sector. As a result, most market participants expect property values to continue rising in the coming months.