It appears that the real estate market will continue its upward trend in 2026, following a particularly strong 2025, with transactions and prices showing significant increases.
Behind these impressive figures, however, a market of varying speeds is taking shape, with Limassol dominating in terms of transaction value, Paphos attracting the largest share of foreign buyers, and Larnaca strengthening its momentum.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
According to PwC’s annual report (April 2026), the total value of real estate transactions reached €6.5 billion in 2025, an 8% increase compared to 2024, while approximately 25,600 transactions were recorded. At the same time, 18,114 deeds of sale were filed with the Land Registry (January 2026), compared to 15,797 in 2024. These are different metrics, as deeds of sale reflect new purchase agreements, while property transfers reflect the completion of the transfer of ownership.
This trend continued through the first nine months of 2026. According to the Land Registry (October 2026), from January through September, 14,969 deeds of sale were filed, compared to 13,173 during the same period last year, marking a 13.6% increase. The value of completed transfers reached €3.72 billion, up 6.6%.
Limassol remains in first place in terms of the number of sales, accounting for approximately one-third of all activity across Cyprus. Paphos, however, shows the largest percentage increase, while Larnaca now surpasses Nicosia in the number of new sales.
How Much Have Housing Prices Risen?
The increased activity is accompanied by ongoing price increases. According to the Central Bank, housing prices rose by 8.5% year-over-year in the second quarter of 2026, with apartments recording an 8.9% increase and single-family homes a 5.8% increase.
Particularly noteworthy is the case of Paphos, where apartment prices rose by 18.5%, while the increase for single-family homes was limited to 3.1%. This variation demonstrates that even within the same district, different categories of housing follow different trends.
The picture becomes even more interesting when actual sales prices are examined. According to Landbank Analytics, there are significant differences between pre-owned and newly built apartments, with Paphos standing out particularly in the market for new developments.
The difference is particularly large in Paphos, where the median price of a newly built apartment exceeds €300,000. This does not mean that two identical properties show such a discrepancy, as the price takes into account the location, size, and features of each development.
Where Foreign Buyers Are Purchasing
The presence of foreign investors remains a key factor. In the first nine months of 2026, 6,267 properties were recorded with sales contracts filed by non-Cypriot buyers, of which 4,173 were linked to citizens of third countries and 2,094 to citizens of other European Union member states.
Paphos presents the most striking picture, as approximately seven out of ten properties in the new transaction activity are linked to foreign buyers. This percentage does not apply to all existing properties in the district, but rather to sales contracts from the period under review.
With regard to nationalities, parliamentary data for the period September 2024–September 2025 reveal the following:
For High-End Buyers
International demand is also expanding in the luxury market. In 2025, PwC recorded a total of 203 residential transactions valued at at least €1.5 million, totaling €550 million. Although Limassol retained its top position, its share fell to 61%, while Paphos’s share rose to 28%, up from 18% in 2024.
The Housing Problem
The other side of the real estate market concerns affordable housing. Rents remain high, with indicative estimates from the summer of 2026 placing the rent for a two-bedroom apartment in Limassol between €1,400 and €1,500 per month, compared to €800–€900 in Nicosia.
At the same time, the number of residential units covered by building permits increased by 63.7% in the first five months of 2026. This increase, however, does not mean that the homes have already been completed or that they will be available at affordable prices. Furthermore, the Audit Office has highlighted gaps in the monitoring of purchases made through companies with foreign interests, making it difficult to fully identify the actual owners.
