Apartments in Cyprus have become 10.8% more expensive over the year: where are prices rising fastest?

According to the Central Bank of Cyprus, in the first quarter of 2026 apartment prices on the island rose by 10.8% year on year, while private house prices increased by only 3%. The overall housing price index climbed by 7.5%, with Limassol (+9.1%) and Larnaca (+8.9%) leading the growth.

Foreign buyers remain the main driver of the market. Over the quarter, the number of transactions with their participation rose by 22.3% (2,044 contracts), while among local residents the increase was 8.1% (2,665 contracts). In Paphos, foreign buyers account for three quarters of property purchases, while in Nicosia 84% of transactions are made by Cypriot citizens.

Rising housing costs are being further fuelled by a drop in mortgage rates to 3.15% and higher construction costs due to labor shortages. Most market experts forecast a further increase in prices, especially in the apartment segment.