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
If you want to buy property in Cyprus, understanding the current state of the market is the first step to making a smart decision.
In this article, we break down the current housing prices in Cyprus, market momentum, neighborhoods to watch, and everything a foreign buyer needs to know in 2026.
We constantly update this blog post with fresh data and new insights to keep you informed.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Cyprus.
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
How's the real estate market going in Cyprus in 2026?
What's the average days-on-market in Cyprus in 2026?
As of early 2026, the estimated average days-on-market for residential properties in Cyprus is around 90 days, meaning a properly priced home typically sells within about three months.
For most typical listings in Cyprus, the realistic range sits between 70 and 140 days, with apartments generally moving faster (70 to 95 days) and houses or villas taking a bit longer (95 to 140 days).
Compared to 2024, this represents a slight improvement because transaction volumes jumped by about 15% in 2025 according to the Department of Lands and Surveys, which signals stronger buyer activity and shorter waiting times for sellers.
Are properties selling above or below asking in Cyprus in 2026?
As of early 2026, the estimated average sale-to-asking price ratio for residential properties in Cyprus sits at around 95% to 98%, meaning most homes sell slightly below the original asking price.
We estimate that roughly 70% to 80% of properties in Cyprus sell at or below asking, while only about 10% to 15% sell above asking in particularly competitive pockets, though we should note this is based on triangulated market data rather than an official published figure.
The neighborhoods most likely to see bidding wars and above-asking sales in Cyprus are prime coastal zones in Limassol near the marina, well-priced new builds in Larnaca, and properties with clear title deeds in high-demand areas of Paphos like Kato Paphos.
By the way, you will find much more detailed data in our property pack covering the real estate market in Cyprus.
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.
What kinds of residential properties can I realistically buy in Cyprus?
What property types dominate in Cyprus right now?
The estimated breakdown of residential property types in Cyprus shows that apartments make up roughly 68% of all residential transactions, while houses (including detached, semi-detached, and villas) account for about 32%.
Apartments clearly represent the largest share of the Cyprus property market, especially in coastal cities like Limassol, Larnaca, and Paphos where developer-led projects dominate the landscape.
This dominance happened because foreign buyer demand, tourism-driven investment, and the permanent residency program all favor apartments, which are easier to manage remotely and typically come with clearer title deed situations in new developments.
If you want to know more, you should read our dedicated analyses:
Are new builds widely available in Cyprus right now?
The estimated share of new-build properties among residential listings in Cyprus is significant, particularly in developer-heavy districts, with building permits approving over 8,100 new dwelling units in the first seven months of 2025 alone.
As of early 2026, the neighborhoods with the highest concentration of new-build developments in Cyprus are Limassol (especially Zakaki and the coastal strip), Larnaca (Mackenzie and the port area), and parts of Paphos like Kato Paphos and Chloraka.
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Which neighborhoods are improving fastest in Cyprus in 2026?
Which areas in Cyprus are gentrifying in 2026?
As of early 2026, the top neighborhoods in Cyprus showing the clearest signs of gentrification include Mackenzie in Larnaca, Zakaki in Limassol, Kato Polemidia in Limassol, and areas like Strovolos and Engomi in Nicosia.
The visible changes indicating gentrification in these Cyprus neighborhoods include the arrival of specialty coffee shops and international restaurants in Mackenzie, large-scale residential projects near the Larnaca port redevelopment, new apartment complexes replacing older housing stock in Kato Polemidia, and upgraded retail and dining options along main streets in Strovolos.
The estimated price appreciation in these gentrifying Cyprus neighborhoods over the past two to three years ranges from 5% to 12% annually, with Larnaca areas outperforming the national average due to infrastructure projects and spillover demand from pricier Limassol.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Cyprus.
Where are infrastructure projects boosting demand in Cyprus in 2026?
As of early 2026, the top areas in Cyprus where major infrastructure projects are boosting housing demand are coastal Larnaca near the port and marina redevelopment, Zakaki in Limassol near the integrated resort, and areas benefiting from airport connectivity improvements.
The specific infrastructure projects driving demand in Cyprus include the Larnaca Port and Marina redevelopment (a major regeneration initiative that has attracted renewed investor attention) and City of Dreams Mediterranean in Limassol (a large-scale integrated resort and casino that opened in 2023 and continues to support nearby property values).
The estimated timeline for these Cyprus infrastructure projects varies: the City of Dreams Mediterranean is already operational, while the Larnaca Port and Marina project has experienced delays but is seeing renewed momentum with efforts to restart works potentially advancing through 2026 and beyond.
The typical price impact on nearby properties in Cyprus when infrastructure projects are announced versus completed tends to be a 5% to 10% premium at announcement, with an additional 5% to 15% gain once the project becomes operational and proves its value.
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.
What do locals and insiders say the market feels like in Cyprus?
Do people think homes are overpriced in Cyprus in 2026?
As of early 2026, the general sentiment among locals and market insiders in Cyprus is mixed: many feel that prime coastal Limassol is overpriced while other areas like Nicosia and parts of Larnaca still offer reasonable value.
When arguing that homes are overpriced in Cyprus, locals typically cite the gap between average salaries (around 1,800 to 2,200 euros per month) and property prices that have risen 5% to 7% annually, making it difficult for young Cypriots to buy in cities like Limassol.
Those who believe prices are fair in Cyprus point to strong foreign demand (about 40% of all 2025 transactions involved foreign buyers), limited quality supply, and the permanent residency program that creates a floor under prices in popular areas.
The price-to-income ratio in Cyprus is elevated compared to the national historical average, particularly in Limassol where median apartment prices around 478,000 euros far exceed what typical local salaries can support without substantial savings or family help.
What are common buyer mistakes people regret in Cyprus right now?
The most frequently cited buyer mistake that people regret in Cyprus is being too relaxed about title deed verification, assuming that new-build properties will automatically receive clear title deeds when in fact delays and complications are common.
The second most common buyer mistake in Cyprus is not stress-testing mortgage affordability against potential interest rate changes, because Cyprus mortgage rates follow ECB policy and buyers who stretched their budgets in 2022 or 2023 faced payment shocks when rates rose.
If you want to go deeper, you can check our list of risks and pitfalls people face when buying property in Cyprus.
It's because of these mistakes that we have decided to build our pack covering the property buying process in Cyprus.
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How easy is it for foreigners to buy in Cyprus in 2026?
Do foreigners face extra challenges in Cyprus right now?
The overall difficulty level for foreigners buying property in Cyprus is moderate: EU citizens face relatively few barriers, while non-EU buyers must obtain approval from the Council of Ministers, which is usually granted but adds paperwork and time.
The specific legal restrictions for foreign buyers in Cyprus include the Council of Ministers approval requirement for non-EU citizens, potential limitations on purchases near military zones, and restrictions on buying more than one property for non-EU buyers without special permission.
The practical challenges foreigners most commonly encounter in Cyprus include navigating title deed complexities (especially for older resale properties), dealing with lengthy bank account opening procedures that require physical presence, and coordinating with local lawyers who may operate on "Cyprus time" rather than urgent international buyer timelines.
We will tell you more in our blog article about foreigner property ownership in Cyprus.
Do banks lend to foreigners in Cyprus in 2026?
As of early 2026, mortgage financing is available for foreign buyers in Cyprus, though options are more limited than for residents, with Eurobank being the primary lender for non-residents seeking holiday home or investment loans.
The typical loan-to-value ratios for foreign buyers in Cyprus range from 50% to 70%, meaning you need a down payment of 30% to 50%, while interest rates for non-residents currently sit between 3.5% and 4.5% depending on the bank and your financial profile.
Banks in Cyprus typically require foreign applicants to provide proof of stable income (pay stubs or tax returns), bank statements for the past 3 to 6 months, identity documents, and for self-employed buyers, audited financial statements translated into Greek or English.
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.
How risky is buying in Cyprus compared to other nearby markets?
Is Cyprus more volatile than nearby places in 2026?
As of early 2026, Cyprus shows mid-level price volatility compared to nearby Mediterranean markets: it is generally more stable than Greece (which saw larger swings during the debt crisis years) but can be pricier and more demand-driven in coastal areas than Malta or parts of southern Spain.
Over the past decade, Cyprus experienced a significant correction during the 2012 to 2015 banking crisis when prices dropped roughly 25% to 30% from peak levels, followed by steady recovery that has now pushed prices back to and beyond pre-crisis highs, whereas nearby markets like Greece saw deeper and longer corrections.
If you want to go into more details, we also have a blog article detailing the updated housing prices in Cyprus.
Is Cyprus resilient during downturns historically?
The historical resilience of Cyprus property values during economic downturns is moderate: prices did fall significantly during the 2012 to 2013 banking crisis, but the market recovered within about six to seven years and has shown solid growth since 2018.
During the most recent major downturn in Cyprus (the banking crisis), property prices dropped approximately 25% to 30% from their 2008 peak, and the recovery to pre-crisis levels took until roughly 2019 to 2020, meaning a patient buyer who held through the bottom would now be in profit.
The property types and neighborhoods in Cyprus that historically held value best during downturns are well-located apartments in central Nicosia (where local demand provides a floor), properties with clear title deeds, and homes in established expat-heavy areas like Paphos where foreign retirees continued buying even during tough times.
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How strong is rental demand behind the scenes in Cyprus in 2026?
Is long-term rental demand growing in Cyprus in 2026?
As of early 2026, the growth trend for long-term rental demand in Cyprus remains strong, with rents continuing to rise (up roughly 18% to 25% in recent years in popular districts) as housing supply struggles to keep pace with population growth and foreign worker arrivals.
The tenant demographics driving long-term rental demand in Cyprus include young professionals working in the growing ICT and financial services sectors, university students (especially in Nicosia and Limassol), and a significant number of expats and international workers drawn by favorable tax regimes.
The neighborhoods in Cyprus with the strongest long-term rental demand right now are central Nicosia (Strovolos, Engomi, and areas near universities), business districts of Limassol (Mesa Geitonia, Agios Athanasios), and parts of Larnaca that offer good value relative to Limassol prices.
You might want to check our latest analysis about rental yields in Cyprus.
Is short-term rental demand growing in Cyprus in 2026?
Regulatory changes affecting short-term rentals in Cyprus are currently being discussed, with the government considering stricter rules to address housing availability concerns, though as of early 2026 the market remains relatively accessible for Airbnb-style operations in most areas.
As of early 2026, the growth trend for short-term rental demand in Cyprus is positive, supported by record tourism numbers (over 4 million visitors in 2024 and October 2025 arrivals up 17% year-on-year), which keeps vacation rental occupancy healthy in popular destinations.
The current estimated average occupancy rate for short-term rentals in Cyprus varies significantly by location: coastal tourist areas like Paphos, Ayia Napa, and Protaras can see 60% to 80% occupancy during peak season (May to October) but drop to 20% to 40% in winter months.
The guest demographics driving short-term rental demand in Cyprus include British holidaymakers (the largest tourist group), Israeli visitors, Russian and Eastern European tourists, and a growing number of digital nomads and remote workers staying for one to three months.
By the way, we also have a blog article detailing whether owning an Airbnb rental is profitable in Cyprus.
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.
What are the realistic short-term and long-term projections for Cyprus in 2026?
What's the 12-month outlook for demand in Cyprus in 2026?
As of early 2026, the estimated 12-month demand outlook for residential property in Cyprus is stable to positive, supported by continued foreign buyer interest, improving mortgage conditions (rates have fallen to around 3% to 4%), and a solid economic backdrop.
The key economic and political factors most likely to influence Cyprus property demand over the next 12 months include ECB interest rate policy (further cuts would boost affordability), the stability of tourism arrivals, and any changes to the permanent residency program that could affect foreign buyer incentives.
The forecasted price movement for Cyprus residential property over the next 12 months is a modest increase of approximately 3% to 5%, with apartments likely outperforming houses and coastal areas continuing to see stronger gains than inland districts.
By the way, we also have an update regarding price forecasts in Cyprus.
What's the 3 to 5 year outlook for housing in Cyprus in 2026?
As of early 2026, the estimated 3 to 5 year outlook for housing prices and demand in Cyprus points to steady, uneven growth of roughly 3% to 6% annually, with performance varying significantly between districts and property types rather than a single nationwide boom.
The major development projects expected to shape Cyprus over the next 3 to 5 years include the continued buildout around the Larnaca Port and Marina redevelopment, potential expansion of the City of Dreams resort ecosystem in Limassol, and ongoing infrastructure upgrades to roads and utilities in growth areas.
The single biggest uncertainty that could alter the 3 to 5 year outlook for Cyprus is a significant change to foreign buyer incentives or the permanent residency program, since about 40% of current demand comes from overseas and any tightening could cool transaction volumes.
Are demographics or other trends pushing prices up in Cyprus in 2026?
As of early 2026, the estimated impact of demographic trends on housing prices in Cyprus is moderately positive, with net migration (including foreign workers, retirees, and residency-by-investment applicants) adding steady demand that exceeds new housing supply in popular areas.
The specific demographic shifts most affecting prices in Cyprus include the shrinking average household size (from 2.76 in 2011 to 2.57 in 2021, meaning more units needed for the same population), an aging population of EU retirees seeking Mediterranean homes, and young professionals relocating for tech and services jobs.
Non-demographic trends also pushing prices in Cyprus include the rise of remote work (making Cyprus attractive as a "work from anywhere" base with its favorable tax regime), continued capital flows from buyers seeking EU property exposure, and tourism-driven demand for investment apartments.
These demographic and trend-driven price pressures in Cyprus are expected to continue for at least the next 5 to 10 years, as long as Cyprus maintains its tax advantages, residency programs, and lifestyle appeal compared to other Mediterranean destinations.
What scenario would cause a downturn in Cyprus in 2026?
As of early 2026, the most likely scenario that could trigger a housing downturn in Cyprus would be a combination of a euro area recession (hitting employment and incomes), a sharp reversal of ECB rate policy (making mortgages unaffordable again), and a sustained drop in foreign buyer activity.
The early warning signs indicating such a downturn is beginning in Cyprus would include a noticeable decline in DLS registered contracts for two or more consecutive quarters, a visible uptick in property listings without corresponding sales, and rising mortgage arrears reported by the Central Bank.
Based on historical patterns in Cyprus, a potential downturn could realistically see prices fall 15% to 25% from peak levels in the most affected segments (such as speculative new builds or overleveraged coastal luxury), with recovery potentially taking 5 to 7 years as seen after the 2012 to 2013 crisis.
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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 |
|---|---|---|
| CYSTAT House Price Index | It's Cyprus's official government statistics office publishing standardized quarterly price data. | We used it to verify official price momentum and cross-check private sector narratives. We also used it to benchmark Cyprus against EU peers using the same methodology. |
| Central Bank of Cyprus RPPI | It's the country's central bank publishing a residential property price index used in financial analysis. | We used it to quantify price growth by property type (houses versus apartments). We also cross-checked it against the CYSTAT HPI to understand any differences in coverage. |
| Department of Lands and Surveys | It's Cyprus's official land registry providing hard transaction data on registered sales. | We used it to measure market liquidity via transaction volumes by district. We also tracked foreign versus domestic buyer shares to understand demand composition. |
| RICS/KPMG Cyprus Property Index | It's a professional survey from RICS partnered with a major advisory firm capturing market sentiment. | We used it for qualitative insights on negotiation power and buyer versus seller dynamics. We also used it to triangulate city-by-city momentum that official indexes don't capture. |
| European Commission Forecasts | It's the EU's official macroeconomic forecasting source for member states updated multiple times yearly. | We used it to set the 2026 economic backdrop including GDP and inflation expectations. We also used it to frame realistic demand scenarios for property. |
| IMF Cyprus Dashboard | It's the International Monetary Fund's standardized country data with growth and inflation projections. | We used it as an external benchmark for 2026 economic assumptions. We also cross-checked it against European Commission outlooks to avoid single-source reliance. |
| European Central Bank Rates | It's the primary source for euro area policy rates that directly affect Cyprus mortgage pricing. | We used it to connect financing conditions to housing demand trends. We also used it to explain why affordability can shift even when property prices stay flat. |
| CYSTAT Tourism Arrivals | It's official government data on tourist numbers directly relevant to short-term rental demand. | We used it to assess occupancy pressure in vacation rental hotspots. We combined it with housing data to discuss short-term versus long-term rental dynamics. |
| Eurostat Housing Statistics | It's the EU's official statistical body providing comparable house price and rent data across countries. | We used it to put Cyprus in regional context versus other EU markets. We also used it to benchmark whether Cyprus volatility is normal for the region. |
| FRED Eurostat Rent Index | It republishes Eurostat's harmonized rent series in an easily accessible and verifiable format. | We used it as a transparent long-term rental trend proxy. We preferred this over asking-rent anecdotes because it reflects actual contracted rents. |