The Central Bank of Cyprus (CBC) House Price Index reached 109.7 in the second quarter of 2026, recording an annual increase of 8.5%.
On a quarterly basis, house prices increased by a further 2.4%, according to the Central Bank.
The CBC said the increase was driven by strong demand for residential property, primarily from foreign buyers, although domestic buyers also contributed. Rising construction costs continued to exert additional pressure on prices.
Houses and apartments record increases
The index for houses continued its accelerating annual increase, rising by 5.8% compared with the corresponding quarter of 2025.
Apartment price growth slowed on an annual basis but remained strong, with the Apartment Price Index increasing by 8.9% in the second quarter of 2026.
House prices by district
Annual growth in the general House Price Index accelerated in every district except Limassol, where the rate of increase slowed.
The annual changes recorded were:
- Famagusta: 10%
- Larnaca: 9.8%
- Paphos: 9.6%
- Limassol: 7.8%
- Nicosia: 5.7%
Property sales rise 15.4%
Data from the Department of Lands and Surveys point to continued strength in property demand.
The total number of sales documents increased by 15.4% year on year in the second quarter of 2026, reaching 5,298, compared with 4,592 during the same quarter of 2025.
According to the CBC, the increase was mainly driven by stronger demand from foreign buyers. Domestic demand also contributed positively, although to a lesser degree.
Sharp increase in building permits
Available supply indicators also suggest that construction activity continued to strengthen during the second quarter.
The number of approved building permits rose by 63.7% during January-May 2026, reaching 8,978, compared with 5,484 in the corresponding period cited by the CBC.
At the same time, the Central Bank said the European Commission’s Economic Sentiment Surveys for June 2026 pointed towards a gradual increase in property supply.
The diffusion index measuring construction activity over the preceding three months also remained in positive territory.
Source: CNA
