Cyprus Home Prices Rise 8.5 Percent in the Second Quarter as Famagusta Leads at 10 Percent

Cyprus residential property prices rose 8.5 percent year on year in the second quarter of 2026, with the Central Bank of Cyprus residential property price index reaching 109.7, a 2.4 percent gain on the first quarter. The central bank attributed most of the increase to stronger demand from foreign buyers.

What it means for a foreign buyer

If you have been watching Cyprus and waiting for a better entry point, the second quarter data says the window narrowed rather than widened. Apartments, the format most foreign buyers actually purchase, rose 8.9 percent over the year against 5.8 percent for houses. A two-bedroom unit priced in mid-2025 costs materially more now, and the split between the two property types means the cheaper end of the market is the part moving fastest. District choice also matters more than it did a year ago. Famagusta at 10 percent, Larnaca at 9.8 percent and Paphos at 9.6 percent have all run well ahead of Nicosia at 5.7 percent, so the coastal districts that attract most foreign purchases are precisely the ones repricing hardest.

The supply figure is the one to act on. Approved residential units in the first five months of 2026 came to 8,978, up 63.7 percent on the 5,484 approved in the same period of 2025. That pipeline does not reach the market for two to three years, so it caps nothing today. What it does mean is that anyone signing an off-plan contract now is entering a far more crowded delivery cohort than a buyer who signed in 2024, competing for the same subcontractors and the same inspection queues. Check the developer's completion record and the contractual delivery date rather than the brochure, and make sure the contract is deposited with the Department of Lands and Surveys so your interest is protected before the title is issued.

Prices are accelerating while the build pipeline is only now being laid in behind them.

What changed

The Central Bank of Cyprus reported its residential property price index at 109.7 for the second quarter of 2026. That is 2.4 percent above the first quarter and 8.5 percent above the second quarter of 2025.

The increase was not evenly spread. Apartment prices grew 8.9 percent year on year while house prices grew 5.8 percent. By district, the annual figures were Famagusta 10 percent, Larnaca 9.8 percent, Paphos 9.6 percent, Limassol 7.8 percent and Nicosia 5.7 percent. Limassol, long the most expensive district on the island, sat in the middle of the pack, and Nicosia, the district with the least foreign buyer exposure, was the clear laggard.

Transaction volumes moved with prices. The Department of Lands and Surveys recorded 5,298 sale contracts in the second quarter of 2026, against 4,592 in the second quarter of 2025, an increase of 15.4 percent. The central bank identified foreign buyers as the main source of that additional demand, alongside higher construction costs feeding through to asking prices.