Apartment prices in Cyprus rose by 10.7% in the first quarter of 2026 compared with the fourth quarter of 2025, with Limassol posting the sharpest annual rise of any district, according to Central Bank of Cyprus (CBC) data.
The broader residential property price index rose 7.5% in Q1 2026, up from 7.1% in Q4 2025. Apartment prices drove the increase, climbing 10.8% over the period, while detached house prices slowed to 3%.
The CBC attributed the continued upward trend to robust demand — mainly from foreign buyers and, to a lesser extent, domestic purchasers — alongside rising construction costs, with housing supply increasing only gradually.
Foreign buyers dominate in Paphos, accounting for 75% of purchases. Domestic buyers make up 84% of the market in Nicosia and around 60% in Limassol and Famagusta. The Larnaca market was broadly balanced between local and overseas purchasers.
On an annual basis, apartment prices accelerated fastest in Limassol at 10.7%. Larnaca recorded the highest overall apartment price growth at 11.7%, though the rate there slowed compared with the previous quarter. Paphos slowed to 6.4% and Famagusta to 1.3%. Nicosia held steady at 3.0%.
For detached houses, Larnaca and Paphos both accelerated, to 5.1% and 5.2% respectively. Limassol slowed to 2.4%. Nicosia recorded annual growth of 1.8% after a run of consecutive declines, while Famagusta posted a 0.7% annual fall.
Mortgage lending reinforced the picture. Net new lending for home loans rose 24.5% year-on-year in Q1 2026, reaching €353.6 million compared with €284.1 million in Q1 2025, according to the CBC.
The weighted average mortgage interest rate fell to 3.15% in March 2026 from 3.53% in March 2025, reflecting the gradual easing of ECB monetary policy since mid-2024.
Demand for mortgages continued to grow in Q1 2026, surpassing what banks themselves had expected, according to the CBC’s bank lending survey. The central bank attributed this to rising consumer confidence, with the market sustained by both owner-occupier and buy-to-let demand.
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