Apartments in Cyprus were 10.8% more expensive in the first quarter of 2026 compared with the same quarter of 2025, according to data released Tuesday by the Central Bank.

Overall, the general Housing Price Index rose by 7.5% on a year-over-year basis, with apartment prices rising by 10.8% and single-family home prices by 3%, marking a slight slowdown.

In fact, compared to 2010—which the Central Bank of Cyprus considers the base year— prices have risen by 27% for apartments across Cyprus, while in Limassol the increase reaches 53%.

As reported by the CBC, the continued upward trend of the general Housing Price Index (HPI) during the first quarter of 2026 is attributed to continued strong demand for residential properties, primarily from foreign buyers and, to a lesser extent, from domestic buyers, rising construction costs, while the housing supply is gradually increasing.

Compared to the previous quarter, the overall CPI (houses and apartments) in the first quarter of 2026 recorded a quarterly increase of 2.3%, compared with an increase of 2.4% in the fourth quarter of 2025. This resulted from an accelerating quarterly rise of 1.5% in house prices and a decelerating increase of 2.4% in apartment prices

Regarding the annual changes in the overall Housing Price Indices by district, an acceleration was recorded in Nicosia (2.8%) and Larnaca (8.9%), a slowdown in the districts of Limassol (9.1%) and Paphos (6.4%), while in Famagusta, no change was recorded compared to the fourth quarter of 2025.

By housing type and on an annual basis, an accelerating rise was recorded in the Apartment Price Index, while a slowdown was recorded in the House Price Index. With regard to the House Price Index, a slowdown was recorded in the Limassol district, with the rate of increase standing at 2.4%. At the same time, growth accelerated in Larnaca (5.1%) and Paphos (5.2%).

In Nicosia, an annual increase was observed following consecutive declines (1.8%). Famagusta recorded an annual decline (-0.7%).

Apartment prices showed an accelerating increase only in Limassol (10.7%) during the first quarter of 2026. A slowdown was recorded in Larnaca (11.7%), Paphos (6.4%), and Famagusta (1.3%). Nicosia recorded the same annual growth rate as in the previous quarter (3%).

Regarding real estate demand, according to data from the Department of Land and Surveys (DLS), the total number of sales deeds in the first quarter of 2026 showed a significant year-over-year increase.

According to data from the TKC, deeds of sale—which cover all types of real estate—recorded a year-over-year increase of 13.8% in the first quarter of 2026 (4,709 compared to 4,137 in the first quarter of 2025).

This increase is attributed primarily to foreign buyers, while demand from domestic buyers also rose, albeit to a more limited extent.

Specifically, during the quarter under review, the number of properties sold to foreign buyers increased by 22.3% year-over-year (2,044 compared to 1,671 in the first quarter of 2025), while there was an 8.1% year-over-year increase in the number of properties sold to domestic buyers (2,665 compared to 2,466 in the first quarter of 2025).

As for the number of sales deeds per district, the most transactions took place in Limassol (1,499), followed by Nicosia (1,065), Larnaca (994) and Paphos (919), while Famagusta (232) recorded the lowest number of transactions.

The percentage of domestic buyers stands at 84% in the Nicosia district and around 60% in the Limassol and Famagusta districts. In the Larnaca district, the ratio of domestic to foreign buyers was generally balanced, while in Paphos, foreign buyers predominate (75%).

According to the CBC, loans to households for home purchases continued to grow at a steady pace in the first quarter of 2026, maintaining a clearly strengthened upward trajectory. This trend was supported by the gradual easing of interest rates, which helped boost demand in the real estate market.

According to the CBC’s most recent Monetary and Financial Statistics, net new lending for mortgage loans increased by 24.5% year-over-year in the first quarter of 2026 (€353.6 million in the first quarter of 2026 compared to €284.1 million in the corresponding quarter of 2025). The weighted average interest rate on mortgage loans fell to 3.15% in March 2026, compared to 3.53% in March 2025, reflecting the ECB’s gradual easing of monetary policy since mid-2024.

The positive trend in residential mortgage lending is also reflected in the results of the CBC’s Bank Lending Survey (April 2026). Specifically, during the first quarter of 2026, net demand for housing loans from households increased compared to the previous quarter, while mortgage lending standards remained at the same strict levels.

According to banks’ expectations for the second quarter of 2026, net demand for mortgage loans is expected to remain at the levels seen in the first quarter of 2026, while mortgage lending standards are expected to become even stricter.

As for housing supply, according to available monthly data from the Cyprus Statistical Service (CSS), the number of residential units for which building permits were approved—a leading indicator of construction activity—recorded a year-over-year increase of 79.2% in the first two months of 2026 (from 1,932 units in January–February 2025 to 3,463 units in the corresponding period of 2026).

Consequently, the CBC reports that the gradual increase in the supply of residential units is expected to continue in the medium term. According to data from the European Commission’s Economic Sentiment Surveys (March 2026), the dispersion index for construction activity over the previous three months remained positive in the first quarter of 2026, for the tenth consecutive quarter (3.2). The CBC notes that this is consistent with the aforementioned gradual increase in supply.

The SYK construction materials price index recorded a marginal annual increase of 0.9% in the first quarter of 2026, remaining at historically high levels in recent years, partly as a result of geopolitical developments that have also disrupted the supply chain

The European Commission’s EOS Expectations Index (March 2026) for real estate prices over the next three months illustrates the trend in residential prices relative to the quarter in question, as it stands at a higher level in the first quarter of 2026 (32.8) compared to the same quarter last year (24.6). According to the CBC, this suggests that a larger percentage of respondents expect real estate prices in Cyprus to rise over the next three months.

Furthermore, according to the same source (the European Commission’s EOS), the labor shortage observed in recent years in the construction sector—as perceived by the companies surveyed—is exerting upward pressure on prices in the real estate market.

According to the CBC, these reported labor shortages are also consistent with wage increases in the sector, which have remained at high levels in recent quarters compared to pre-pandemic levels.