The dream of owning your own four walls in Cyprus is becoming increasingly expensive for many people. New figures from the Central Bank of Cyprus show that condominiums in particular have become significantly more expensive within a year. While houses also rose in price, the increase there is much more moderate.

Apartments increase in price by 10.8 percent

According to the central bank, prices for apartments rose by 10.8 percent in the first quarter of 2026 compared to the same period last year. Single-family houses, on the other hand, rose in price by only 3 percent. Overall, the residential property price index rose by 7.5 percent. 

The market developed particularly dynamically in:

Other regions also recorded rising prices, albeit not to the same extent.


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The central bank continues to cite strong demand from abroad as the main cause of the development.

In the first quarter of 2026, 2,044 property purchases by foreign buyers were registered – an increase of 22.3 percent compared to the previous year. The number of purchases by Cypriots also increased, but at a much slower pace by 8.1 per cent to 2,665 transactions, 

These figures clearly show that the international real estate market is increasingly affecting coastal regions in particular. 

Several factors are currently affecting the real estate market at the same time:

Although construction activity is picking up again, the additional supply is not yet sufficient to fully compensate for the excess demand. In the first two months of 2026 alone, the number of approved residential units rose by 79.2 percent, which could lead to more supply in the medium term. However, it is likely to be some time before these projects are completed. 

The development is increasingly causing discussions. While foreign investment brings significant capital inflows to Cyprus and strengthens the construction industry and numerous service industries, rising prices make it difficult for many locals to purchase residential property.

Young families and first-time buyers in particular have to finance significantly higher purchase prices today than they did just a few years ago. In popular regions such as Limassol or Paphos, many interested parties are now switching to cheaper peripheral locations or smaller cities.

For many people from Germany, Austria or Switzerland, Cyprus remains an attractive destination due to its climate, the tax framework and the high quality of life.

However, if you want to buy a property today, you should take into account that prices have risen continuously in recent years. Modern apartments near the coast in particular are now fetching significantly higher purchase prices than just a few years ago.

At the same time, real estate experts point out that regions outside the classic hotspots can sometimes offer even cheaper entry opportunities.

According to many market observers, the upward trend is likely to continue for the time being. As long as demand from abroad remains high, financing is comparatively attractive and supply lags behind demand, numerous experts expect further price increases, especially for condominiums. 

Whether the sharp increase in construction activity will be able to noticeably relieve the market in the coming years will only become clear when the currently planned residential projects can actually be completed and occupied. Until then, the Cypriot real estate market is likely to remain one of the most dynamic within the European Union. ADVERTISING
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Source: Cyprus-Mail.com / CBN CYprus Central Bank / gov.cy