Is now a good time to buy a property in Cyprus? (January 2026)

Authored by the expert who managed and guided the team behind the Cyprus Property Pack

Everything you need to know before buying real estate is included in our Cyprus Property Pack

Fact-checked and reviewed by our local expert

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Nikki Grey 🇬🇧

CEO & Director, Europe Properties

With years of experience in European real estate, Nikki Grey understands the unique appeal of Cyprus as a prime investment destination. At Europe Properties, she facilitates property acquisitions that offer both lifestyle and financial benefits, including access to the island’s Golden Visa program. Her insights help investors navigate the Cypriot market, from beachfront villas to lucrative rental properties.

Who is the author of this content?

INVESTROPA

A team specialized in real estate investing in European countries

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in Cyprus. If you’d like to learn more about us, you can check our presentation page.

Is it smart to buy now in Cyprus, or should I wait as of 2026?

Do real estate prices look too high in Cyprus as of 2026?

As of early 2026, Cyprus property prices are stretched in popular coastal areas but not at bubble levels nationwide, with the Central Bank's index showing about 5% annual growth overall and clear differences between property types and districts.

One telling signal is that apartments in Cyprus are selling faster and appreciating more than houses, while houses in Nicosia actually declined year-on-year for several quarters, which is not what you'd see in a uniform price bubble.

Another indicator is that transaction volumes in Cyprus jumped 17% in 2025, suggesting buyers still see value at current prices rather than staying on the sidelines waiting for a correction.

You can also read our latest update regarding the housing prices in Cyprus.

Does a property price drop look likely in Cyprus as of 2026?

As of early 2026, the likelihood of a meaningful property price drop in Cyprus over the next 12 months is low, mainly because transaction momentum remains strong and there are no signs of forced selling in the official data.

If prices do soften, we estimate a plausible range of minus 5% to plus 7% for Cyprus property values over the next year, with the downside concentrated in overpriced luxury segments rather than the broader market.

The single macro factor that could most increase the odds of a Cyprus property price drop is a shock to foreign demand, whether from regional geopolitical instability or policy changes affecting capital inflows into the island.

However, this scenario remains unlikely in the near term given Cyprus's stable EU membership, continued interest from international buyers, and the ECB's shift toward rate cuts rather than hikes.

Finally, please note that we cover the price trends for next year in our pack about the property market in Cyprus.

Could property prices jump again in Cyprus as of 2026?

As of early 2026, there is a medium-to-high likelihood of renewed price growth in Cyprus, especially for apartments, if mortgage rates continue drifting lower and supply remains tight in desirable locations.

We estimate a plausible upside range of 4% to 7% nominal price growth for Cyprus property in 2026, with apartments and coastal areas potentially exceeding this average.

The single biggest demand-side trigger that could push Cyprus property prices higher is continued ECB rate easing combined with sustained foreign buyer interest, which would make financing more accessible and keep competition for limited inventory strong.

Please also note that we regularly publish and update real estate price forecasts for Cyprus here.

Are we in a buyer or a seller market in Cyprus as of 2026?

As of early 2026, Cyprus is a mildly seller-leaning market overall, though buyers have more leverage in slower segments like resale houses in Nicosia or overpriced luxury properties.

While Cyprus doesn't publish a standard "months of inventory" figure, the 17% jump in contracts of sale in 2025 suggests properties are being absorbed quickly, which typically means less than 6 months of effective supply in high-demand areas and stronger seller positioning.

Price reductions appear more common for houses and villas than for apartments in Cyprus, indicating that sellers of larger properties face more negotiation pressure while apartment sellers in places like Limassol or Larnaca can often hold firm on asking prices.

We have made this infographic to give you a quick and clear snapshot of the property market in Cyprus. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.

Are homes overpriced, or fairly priced in Cyprus as of 2026?

Are homes overpriced versus rents or versus incomes in Cyprus as of 2026?

As of early 2026, Cyprus homes are stretched versus incomes (especially houses) but apartments look more fairly priced when compared to the rents they can generate.

The price-to-rent ratio for Cyprus apartments sits around 18 times annual rent (based on gross yields near 5.4%), which is within a reasonable range for investment, while houses at roughly 34 times annual rent (yields around 3%) look expensive relative to rental income.

On affordability, Cyprus apartments averaging around 247,000 euros represent about 6 to 8 times a typical middle-income household's annual earnings, while houses at roughly 459,000 euros stretch to 11 to 15 times income, meaning houses often require dual high incomes, substantial equity, or foreign capital.

Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Cyprus.

Are home prices above the long-term average in Cyprus as of 2026?

As of early 2026, Cyprus property prices sit well above the post-2015 recovery baseline and the early-2010s trough, placing the market in a mature upcycle phase rather than an early-rebound opportunity.

The recent 12-month price change in Cyprus of around 5% is moderate compared to the sharper gains seen in some post-pandemic years, suggesting the market is growing steadily rather than overheating.

In inflation-adjusted terms, Cyprus property values have recovered from the financial crisis lows but remain below the speculative peaks of the pre-2008 era, which means current prices reflect genuine demand rather than purely speculative excess.

What local changes could move prices in Cyprus as of 2026?

Are big infrastructure projects coming to Cyprus as of 2026?

As of early 2026, the most significant infrastructure-related price impacts in Cyprus are concentrated around Larnaca's airport corridor regeneration, Limassol's business district expansion, and ongoing urban improvements in Nicosia.

These projects tend to be incremental rather than single mega-projects, with timelines spread over several years, meaning their price effects show up gradually in neighborhoods like Mackenzie and Finikoudes in Larnaca, Germasogeia and Agios Tychonas in Limassol, and Strovolos and Engomi in Nicosia.

For the latest updates on the local projects, you can read our property market analysis about Cyprus here.

Are zoning or building rules changing in Cyprus as of 2026?

The most important regulatory trend in Cyprus is increasing compliance pressure around energy performance and building standards, driven by EU requirements rather than a single dramatic zoning change.

As of early 2026, these evolving building rules are pushing construction costs higher per square meter in Cyprus, which tends to keep new-build pricing firm even when permit counts soften, effectively limiting the supply of affordable new units.

The areas most affected by these changes in Cyprus are new development zones in coastal districts like Limassol and Paphos, where projects must meet higher specifications, often resulting in "bigger and pricier" rather than "more abundant and cheaper" new housing.

Are foreign-buyer or mortgage rules changing in Cyprus as of 2026?

As of early 2026, Cyprus mortgage conditions are the bigger story for property prices than specific foreign-buyer rule changes, because the ECB's shift to rate cuts in 2025 has reduced financing pressure compared to the 2022-2024 hiking cycle.

There are no major new foreign-buyer restrictions currently being implemented in Cyprus, though the market continues to attract international buyers, particularly from the UK, Russia, and other EU countries seeking Mediterranean property.

On the mortgage side, Cyprus lending rates remain close to the euro-area median according to Central Bank data, meaning local buyers aren't facing uniquely punitive financing conditions, which supports continued demand.

You can also read our latest update about mortgage and interest rates in Cyprus.

We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cyprus versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.

Will it be easy to find tenants in Cyprus as of 2026?

Is the renter pool growing faster than new supply in Cyprus as of 2026?

As of early 2026, renter demand in Cyprus is outpacing the arrival of affordable new rental supply, particularly in employment hubs and university areas like Nicosia, Limassol, and Larnaca.

The clearest demand signal is the strength of rental yields and rent growth reported by RICS/KPMG, which typically doesn't happen when rental markets are loose or oversupplied.

On the supply side, Cyprus building permits show new units coming online, but many are higher-specification or higher-priced developments rather than mass affordable rentals, meaning the gap between what renters need and what's being built persists.

Are days-on-market for rentals falling in Cyprus as of 2026?

As of early 2026, well-priced apartments in prime Cyprus locations are typically finding tenants within 2 to 5 weeks, while houses and villas can take 6 to 12 weeks or longer.

The difference in letting speed is significant: a correctly priced two-bedroom apartment in Limassol's Germasogeia or Larnaca's Mackenzie area moves quickly, while a luxury villa in Paphos may sit vacant for months if priced above local affordability.

The main reason rental days-on-market falls in Cyprus is persistent undersupply of mid-priced apartments in areas with year-round employment, combined with seasonal demand spikes from students and short-term workers.

Are vacancies dropping in the best areas of Cyprus as of 2026?

As of early 2026, vacancy rates in the best-performing rental areas of Cyprus like Germasogeia, Strovolos, Mackenzie, and Protaras are estimated at around 3% to 5%, compared to 5% to 8% for the broader market.

These prime Cyprus neighborhoods consistently show tighter conditions because they combine year-round demand drivers like employment, universities, and tourism with limited new affordable supply.

One practical sign that the best areas in Cyprus are tightening first is that landlords in these locations are increasingly able to raise rents at lease renewal without losing tenants, a dynamic that doesn't happen when vacancies are rising.

By the way, we've written a blog article detailing what are the current rent levels in Cyprus.

Am I buying into a tightening market in Cyprus as of 2026?

Is for-sale inventory shrinking in Cyprus as of 2026?

As of early 2026, for-sale inventory in Cyprus feels tight in high-demand areas, though we lack a single nationwide MLS figure to confirm exact year-on-year changes.

What we can say is that when contracts of sale jump 17% in a year (as they did in 2025), inventory gets absorbed quickly, suggesting effective months-of-supply is likely below 6 months in popular districts like Limassol and Larnaca, which is below the balanced market threshold.

The most likely reason inventory feels tight in Cyprus is that strong buyer demand is absorbing available properties faster than new listings appear, particularly for well-located apartments in the 200,000 to 300,000 euro range.

Are homes selling faster in Cyprus as of 2026?

As of early 2026, well-priced apartments in strong Cyprus districts are typically selling within 4 to 10 weeks, while houses in slower areas can take 3 to 6 months.

Year-on-year, selling times appear to have compressed for apartments given their stronger price momentum and rising transaction volumes, while houses show more mixed results depending on location and price point.

Are new listings slowing down in Cyprus as of 2026?

As of early 2026, new listings in Cyprus appear to be growing slowly at best, with building permit counts declining in parts of 2025 even as project values rose, suggesting fewer but larger developments rather than more abundant housing.

Cyprus typically sees stronger listing activity in spring and early summer, so the current winter period tends to be seasonally quieter, though the underlying trend of limited new affordable supply persists year-round.

The most plausible reason new listings are constrained in Cyprus is rising construction costs and higher building specifications, which make it less attractive for developers to build smaller, more affordable units that would generate more listings.

Is new construction failing to keep up in Cyprus as of 2026?

As of early 2026, new construction in Cyprus is partially keeping up with demand at the island level, but not in the affordable segments and prime locations where most buyers want to purchase.

Recent permit data shows dwelling units are being planned (for example, 1,147 units authorized in August 2025 alone), but many of these are higher-specification projects that don't address the gap in mid-market housing.

The biggest bottleneck limiting affordable new construction in Cyprus is the combination of high land costs in desirable areas, rising construction expenses, and EU-driven building requirements, which together push developers toward fewer, pricier units rather than volume building.

We made this infographic to show you how property prices in Cyprus compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.

Will it be easy to sell later in Cyprus as of 2026?

Is resale liquidity strong enough in Cyprus as of 2026?

As of early 2026, resale liquidity in Cyprus is strong for mainstream apartments and mid-market houses in liveable neighborhoods, but weaker for niche luxury properties unless priced realistically.

With over 18,000 contracts registered pancyprian in 2025 compared to about 15,800 in 2024, the Cyprus market is clearly executing deals at scale, which means properly priced properties find buyers within a reasonable timeframe.

The property characteristic that most improves resale liquidity in Cyprus is location in a year-round demand area combined with apartment or maisonette format, as these attract both local buyers and investors seeking rental income.

Is selling time getting longer in Cyprus as of 2026?

As of early 2026, selling time in Cyprus is not broadly lengthening for apartments, though houses and villas in slower-demand districts may experience longer marketing periods compared to last year.

The current median selling time in Cyprus ranges from roughly 4 to 10 weeks for well-priced apartments in strong locations to 3 to 6 months for houses, with overpriced or poorly located properties potentially taking longer.

One clear reason selling time can lengthen in Cyprus is affordability pressure on local buyers, who may struggle with house prices at 11 to 15 times typical household income, forcing sellers to either reduce prices or wait for foreign or cash buyers.

Is it realistic to exit with profit in Cyprus as of 2026?

As of early 2026, the likelihood of selling a Cyprus property with profit is medium to high if you buy the right segment, don't overpay, and hold for an adequate period.

The minimum holding period that typically makes exiting with profit realistic in Cyprus is around 5 to 7 years, which allows enough time for price appreciation to cover transaction costs and any market fluctuations.

Total round-trip costs in Cyprus (buying plus selling) typically run around 10% to 15% of the property value, which in euros means roughly 25,000 to 40,000 euros on a 250,000 euro apartment or 45,000 to 70,000 euros on a 450,000 euro house (approximately the same in USD given near-parity).

The factor that most increases profit odds in Cyprus is buying apartments or maisonettes in high year-round demand areas at or below market value, as these benefit from both capital appreciation (around 5% annually recently) and strong rental yields (around 5.4% gross) to support holding costs.

What sources have we used to write this blog article?

Whether it's in our blog articles or the market analyses included in our property pack about Cyprus, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.

We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.

Source	Why it's authoritative	How we used it
Central Bank of Cyprus RPPI	It's the central bank's official price index built from bank-linked valuation data.	We used it as the main price trend backbone for Cyprus overall, by property type, and by district. We also used its methodology notes to explain index construction.
CyStat House Price Index	CyStat is the national statistics agency, making its HPI an official benchmark.	We used it to triangulate the Central Bank's RPPI with a second official index. We used it to confirm the direction and pace of price growth.
Department of Lands and Surveys	It's the official land authority's transaction data broken down by month and district.	We used it as the demand and liquidity indicator for Cyprus property. We used it to infer buyer versus seller market conditions.
Eurostat House Price Index	Eurostat standardizes national data for consistent EU-wide comparison.	We used it to add EU context to Cyprus price trends. We used it as external validation of domestic indices.
RICS/KPMG Cyprus Property Index	RICS is a global surveying body and KPMG is a major consultancy.	We used it for rental yields and price signals alongside official indices. We used it to discuss rental market tightness.
PwC Cyprus Real Estate Review	PwC is a major consultancy compiling transaction and financing trends.	We used it to ground analysis in transaction values and lending activity. We used it to cross-check demand conclusions.
Landbank Properties	It's a specialized Cyprus market intelligence provider using Land Registry data.	We used it to produce concrete affordability estimates in euros. We used it as a price levels complement to official indices.
European Central Bank	It's the ECB's official record of policy rates affecting euro-area mortgages.	We used it to explain mortgage rate trends for Cyprus buyers. We used it to frame interest rate risk for 2026.
CBC Interest Rate Statistics	It's the Central Bank's snapshot of Cyprus lending rates versus euro area.	We used it to anchor borrowing cost assumptions for Cyprus. We used it to explain financing conditions.
CyStat Building Permits	It's the official statistical release with permit counts, values, and dwelling units.	We used it to quantify 2025 permit volumes and supply pipeline. We used it to explain why supply may stay constrained.
Government of Cyprus Building Permits	It republishes CyStat releases in a stable government channel.	We used it to measure incoming housing supply. We used it to support the supply analysis narrative.
Eurostat Building Permits Methodology	It explains how official permit statistics are collected and standardized.	We used it to clarify what building permits capture in Cyprus. We used it to keep supply interpretation comparable.

We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cyprus. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.