Driven by persistent international buyer demand and elevated construction costs, Cyprus’s residential real estate sector posted strong gains in the second quarter of 2026, according to recent figures released by the Central Bank of Cyprus (CBC).
Core Price Trends: Apartments Outpace Houses
The CBC’s Residential Property Price Index (RPPI) expanded by 8.5% year-on-year in Q2 2026, building on a 2.4% quarter-on-quarter gain. While foreign buyers remained the primary engine of demand, local purchasers also contributed to market growth.
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Apartments: Recorded an 8.9% annual surge, despite showing a minor quarterly deceleration.
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Houses: Accelerated to a 5.8% annual growth rate during the same period.
District Breakdown
Across the island, price growth accelerated in nearly every region. Limassol was the sole district to see its annual growth rate ease:
| District | Annual Price Change (Q2 2026) | Trend Direction |
| פמגוסטה | +10.0% | Accelerated |
| לרנקה | +9.8% | Accelerated |
| פאפוס | +9.6% | Accelerated |
| לימסול | +7.8% | Decelerated |
| ניקוסיה | +5.7% | Accelerated |
Demand & Supply Dynamics
Data from the Department of Lands and Surveys (DLS) and the European Commission highlight robust transaction volumes and expanding supply pipelines:
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Sales Contracts: Totaled 5,298 transactions in Q2 2026—a 15.4% increase compared to the 4,592 contracts recorded in Q2 2025. Foreign investment remained the main driver, supported by steady domestic interest.
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Building Permits: Surged 63.7% during the first five months of 2026, climbing to 8,978 units (up from 5,484 units in Jan–May 2025).
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Construction Outlook: The European Commission’s June 2026 Business and Consumer Surveys indicate positive momentum in recent construction activity, signaling a gradual expansion in future residential supply.
Source: Stockwatch.com.cy