Authored by the expert who managed and guided the team behind the Cyprus Property Pack
Yes, the analysis of Nicosia's property market is included in our pack
Nicosia's property market in 2026 is showing a split personality: apartments are rising while houses are actually declining, and that's what makes this capital city different from the rest of Cyprus.
This blog post walks you through the current housing prices in Nicosia, explores where values are heading, and highlights the neighborhoods and property types worth watching.
We constantly update this blog post as new data becomes available, so bookmark it and come back for fresh insights.
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 Nicosia.
Insights
- Nicosia's overall residential prices in 2026 are essentially flat at around 0% to +1% annual growth, making it Cyprus's slowest-growing major district by a wide margin.
- Apartments in Nicosia are outperforming houses by roughly 5 percentage points, with apartments up 2% to 3% while houses declined 2% to 3% year-on-year.
- The average price per square meter in Nicosia sits at around €2,150, which is notably cheaper than coastal cities like Limassol where prices exceed €3,000 per square meter.
- Engomi, Strovolos, and Aglantzia are the three Nicosia neighborhoods attracting the strongest buyer demand in 2026, driven by universities, embassies, and professional employment.
- Rental yields in Nicosia average around 4.8% for apartments, higher than most coastal areas because purchase prices are lower while year-round rental demand stays steady.
- Foreign buyers now represent about 44% of property transactions in Nicosia, up significantly from previous years, as investors seek alternatives to Limassol's premium prices.
- The ECB's deposit rate currently sits at 2.0%, which is expected to remain stable throughout most of 2026 and keeps mortgage affordability relatively predictable for Nicosia buyers.
- Over the next 5 years, Nicosia property prices are forecast to grow by 15% to 25% cumulatively, driven by steady local demand rather than tourism or speculation.
What are the current property price trends in Nicosia as of 2026?
What is the average house price in Nicosia as of 2026?
As of early 2026, the estimated average price for a residential property in Nicosia is around €270,000, which works out to roughly $290,000 USD or the same in euros since Cyprus uses the euro as its currency.
When you break that down by square meter, Nicosia property prices average about €2,150 per square meter, with apartments typically commanding around €2,300 per square meter and houses coming in lower at approximately €1,850 per square meter.
For a realistic picture of what most buyers actually pay in Nicosia, about 80% of property purchases fall between €150,000 and €450,000, with typical apartments ranging from €180,000 to €320,000 and typical houses or villas ranging from €300,000 to €550,000 depending on size and location.
How much have property prices increased in Nicosia over the past 12 months?
Over the past 12 months leading into January 2026, residential property prices in Nicosia have increased by only about 0% to 1% overall, making the capital the slowest-growing property market in Cyprus.
However, that headline number masks a significant split: apartment prices in Nicosia rose by roughly 2% to 3%, while house and villa prices actually fell by about 2% to 3% year-on-year, creating a two-speed market that favors smaller properties.
The single biggest factor behind this pattern is affordability: construction costs and interest rates have pushed buyers toward smaller, more affordable apartments, and Nicosia's houses simply cost too much for many local buyers to justify, especially when financing conditions are tight.
Which neighborhoods have the fastest rising property prices in Nicosia as of 2026?
As of early 2026, the three Nicosia neighborhoods with the fastest rising property prices are Engomi, Strovolos (particularly areas like Dasoupoli and near Acropolis), and Aglantzia, all of which benefit from proximity to universities, embassies, and major employment centers.
Annual price growth in these top-performing Nicosia neighborhoods ranges from about 4% to 6%, with Engomi leading at closer to 5% to 6% for premium new-build apartments, while Strovolos and Aglantzia follow at around 4% to 5%.
The main driver behind this growth is steady, year-round demand from professionals, embassy staff, and university-related tenants, who need well-located apartments regardless of the season, unlike coastal areas that depend on tourism.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Nicosia.
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.
Which property types are increasing faster in value in Nicosia as of 2026?
As of early 2026, the ranking of property types by value appreciation in Nicosia is: apartments (especially smaller, newer units) at the top, followed by compact townhouses and maisonettes in the middle, and larger detached houses and villas at the bottom with negative or flat growth.
The top-performing property type in Nicosia is apartments, which appreciated by roughly 2% to 4% over the past year, with energy-efficient new builds in good locations seeing the strongest gains.
Apartments are outperforming because buyers in Nicosia are shifting toward smaller, more affordable properties as construction costs and mortgage rates make larger homes harder to finance, a trend the Central Bank of Cyprus has explicitly noted in its market commentary.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Nicosia?
- How much should you pay for a house in Nicosia?
- How much should you pay for an apartment in Nicosia?
- How much should you pay for a studio in Nicosia?
What is driving property prices up or down in Nicosia as of 2026?
As of early 2026, the three main factors driving Nicosia property prices are: affordability constraints pushing demand toward smaller apartments, stable local employment in government and services keeping baseline demand steady, and gradually increasing new supply as more building permits are authorized.
The factor exerting the strongest upward pressure on Nicosia property prices is the consistent year-round demand from local professionals, university staff, and embassy personnel, which keeps apartment prices firm even when the broader market is soft.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Nicosia here.
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What is the property price forecast for Nicosia in 2026?
How much are property prices expected to increase in Nicosia in 2026?
As of early 2026, property prices in Nicosia are expected to increase by about 1% to 3% over the calendar year, with apartments likely to see the upper end of that range and houses remaining closer to flat.
Different analysts have slightly varying forecasts for Nicosia property price growth in 2026, with optimistic scenarios pointing to 3% to 4% for apartments and conservative scenarios suggesting barely above 0% for the overall market, reflecting the uncertainty around interest rates and local demand.
The main assumption underlying most Nicosia price forecasts is that the ECB will keep rates stable and Cyprus's economy will continue its moderate growth path, supporting household incomes and keeping financing conditions accessible for buyers.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Nicosia.
Which neighborhoods will see the highest price growth in Nicosia in 2026?
As of early 2026, the Nicosia neighborhoods expected to see the highest price growth are Engomi, Aglantzia, and Strovolos, along with improving connectivity corridors like Agios Dometios and the Lakatamia-Latsia belt.
Projected price growth for these top Nicosia neighborhoods ranges from 3% to 6% in 2026, with Engomi and Aglantzia at the higher end due to their strong rental markets and limited new supply of quality apartments.
The primary catalyst driving expected growth in these neighborhoods is sustained demand from universities (like the European University of Cyprus), embassies, and private-sector employers concentrated in Nicosia's urban core.
One emerging neighborhood in Nicosia that could surprise with higher-than-expected growth is Agios Dometios, which offers lower entry prices than Engomi but benefits from improving transport links and proximity to the city center.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Nicosia.
What property types will appreciate the most in Nicosia in 2026?
As of early 2026, the property type expected to appreciate the most in Nicosia is apartments, particularly two-bedroom units in well-connected neighborhoods with good energy efficiency ratings and parking.
The projected appreciation for top-performing apartments in Nicosia in 2026 is around 2% to 4%, outpacing the broader residential market and significantly outperforming the house segment.
The main demand trend driving apartment appreciation in Nicosia is the shift toward smaller, more affordable properties as buyers respond to high construction costs and tighter household budgets by downsizing their expectations.
The property type expected to underperform in Nicosia in 2026 is large detached houses and villas, which face limited buyer pools due to high total prices and are more sensitive to interest rate changes because they require bigger mortgages.
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 will interest rates affect property prices in Nicosia in 2026?
As of early 2026, the ECB's stable interest rate environment is expected to have a mildly supportive effect on Nicosia property prices, keeping mortgage costs predictable and avoiding the demand shocks that characterized the 2022-2023 rate hike cycle.
The current ECB deposit facility rate sits at 2.0%, and most market forecasts expect rates to remain stable throughout 2026, with eurozone inflation now at the ECB's 2% target and no immediate pressure to change policy.
In Nicosia, a 1% change in interest rates typically affects property affordability by shifting monthly mortgage payments by roughly €150 to €200 on a typical €250,000 loan, which can push marginal buyers in or out of the market and has an outsized impact on the house segment where loan sizes are larger.
You can also read our latest update about mortgage and interest rates in Cyprus.
What are the biggest risks for property prices in Nicosia in 2026?
As of early 2026, the three biggest risks for Nicosia property prices are: an unexpected tightening of credit conditions or ECB rate hike, external geopolitical or trade shocks that hurt Cyprus's services economy, and oversupply if too many similar apartment projects complete at once in specific neighborhoods.
The single risk with the highest probability of materializing in Nicosia is localized oversupply in certain submarkets, as building permits have been rising and several new apartment developments are scheduled for completion in 2026-2027, which could temporarily soften prices in affected areas.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Nicosia.
Is it a good time to buy a rental property in Nicosia in 2026?
As of early 2026, the overall assessment is yes, it is a reasonably good time to buy a rental property in Nicosia, particularly if you target well-located apartments that appeal to year-round tenants like professionals, university staff, and embassy personnel.
The strongest argument in favor of buying now is that Nicosia offers rental yields of around 4.8% to 5% for apartments, which is higher than many coastal areas, and the city's rental demand is stable throughout the year because it doesn't depend on seasonal tourism.
The strongest argument for waiting is that new apartment supply is increasing in Nicosia, so patient buyers might find better deals or negotiating leverage later in 2026 if the market softens in specific neighborhoods.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Nicosia.
You'll also find a dedicated document about this specific question in our pack about real estate in Nicosia.
Buying real estate in Nicosia can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Nicosia?
What is the 5-year property price forecast for Nicosia as of 2026?
As of early 2026, cumulative property price growth in Nicosia over the next 5 years is expected to reach approximately 15% to 25%, with apartments likely at the higher end and houses at the lower end of that range.
The range of 5-year forecasts for Nicosia spans from a conservative scenario of around 10% to 15% cumulative growth (if economic conditions weaken or supply increases sharply) to an optimistic scenario of 25% to 30% (if demand stays robust and rates fall further).
The projected average annual appreciation rate for Nicosia property over the next 5 years is roughly 3% to 4.5% per year, which represents steady compounding rather than a speculative boom.
The key assumption most forecasters rely on for their 5-year Nicosia predictions is that Cyprus will remain a stable euro-area economy with moderate GDP growth and that Nicosia will continue to function as the capital city with consistent demand from government, education, and professional services.
Which areas in Nicosia will have the best price growth over the next 5 years?
The top three areas in Nicosia expected to have the best price growth over the next 5 years are: the Strovolos-Aglantzia-Engomi urban core (benefiting from sustained professional demand), the Lakatamia-Latsia corridor (benefiting from improved connectivity and relative affordability), and emerging pockets in Agios Dometios (offering value for upgraders).
Projected 5-year cumulative price growth for these top-performing Nicosia areas ranges from 20% to 35%, with connectivity-improved suburbs potentially outperforming established premium areas as transport upgrades widen the "acceptable commuting radius."
This 5-year forecast differs from the shorter 1-year view because it incorporates infrastructure completion effects (like the Nicosia Ring Road), which typically take several years to fully impact property values but can meaningfully shift demand patterns once operational.
The currently undervalued area in Nicosia with the best potential for outperformance over 5 years is Lakatamia, which offers more space for money, benefits from ring-road connectivity improvements, and attracts families priced out of central Strovolos and Engomi.
What property type will give the best return in Nicosia over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Nicosia is mid-market apartments, specifically two-bedroom units in good condition with practical features like parking and energy efficiency.
The projected 5-year total return (combining price appreciation and rental income) for top-performing apartments in Nicosia is approximately 35% to 50%, assuming around 3% to 4% annual appreciation plus cumulative rental yields of roughly 20% to 25% over five years.
The main structural trend favoring apartments over the next 5 years in Nicosia is the ongoing shift in buyer preferences toward smaller, more affordable properties, combined with Nicosia's strong year-round rental demand that doesn't depend on seasonal tourism.
For investors seeking the best balance of return and lower risk over 5 years in Nicosia, resale apartments in established neighborhoods like Strovolos or Aglantzia offer more predictable returns because they're already proven with tenants and don't carry new-build completion risk.
How will new infrastructure projects affect property prices in Nicosia over 5 years?
The top three major infrastructure projects expected to impact Nicosia property prices over the next 5 years are: the Nicosia Ring Road (improving cross-city connectivity), urban regeneration projects in the city center, and streetscape and public transport improvements in key residential corridors.
The typical price premium for properties near completed infrastructure projects in Nicosia is around 5% to 15%, with the strongest effects seen in neighborhoods that move from "inconvenient" to "well-connected" status once new roads or transport links open.
The specific neighborhoods expected to benefit most from these infrastructure developments in Nicosia are Lakatamia, Latsia, and the Geri corridor (from ring-road access), plus Agios Dometios and parts of Strovolos that gain improved connectivity to the city center.
How will population growth and other factors impact property values in Nicosia in 5 years?
The projected population growth rate for the Nicosia district is moderate at around 0.5% to 1% annually, but the more important impact on property values comes from household formation and internal migration as young professionals move to the capital for employment opportunities.
The demographic shift with the strongest influence on Nicosia property demand is the growing number of smaller households, including young professionals, single occupants, and couples without children, who prefer apartments over traditional houses and drive demand in central neighborhoods.
Migration patterns affecting Nicosia property values over 5 years include continued international inflows of professionals and students (attracted by universities and the services sector), as well as domestic migration from other parts of Cyprus toward the capital's job market.
The property types and areas that will benefit most from these demographic trends in Nicosia are smaller apartments in Engomi, Aglantzia, and Strovolos, where universities and professional employers create consistent demand regardless of broader economic cycles.
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 is the 10 year property price outlook in Nicosia?
What is the 10-year property price prediction for Nicosia as of 2026?
As of early 2026, cumulative property price growth in Nicosia over the next 10 years is expected to reach approximately 30% to 55%, assuming Cyprus remains a stable euro-area economy and Nicosia maintains its role as the capital and administrative center.
The range of 10-year forecasts for Nicosia spans from a conservative scenario of around 25% to 30% cumulative growth (if economic headwinds persist) to an optimistic scenario of 55% to 70% (if Cyprus outperforms and demand remains robust).
The projected average annual appreciation rate for Nicosia property over the next 10 years is roughly 2.7% to 4.5% per year, reflecting steady compounding typical of a mature euro-area capital city rather than a speculative boom market.
The biggest uncertainty factor in making 10-year property price predictions for Nicosia is the interest rate environment: if euro-area rates move significantly higher or lower than current expectations, it would materially shift affordability and demand patterns in ways that are hard to forecast a decade out.
What long-term economic factors will shape property prices in Nicosia?
The top three long-term economic factors that will shape Nicosia property prices over the next decade are: income growth and productivity in Cyprus's services sector, the interest rate regime in the euro area, and housing supply responsiveness (how quickly new homes get built when demand rises).
The single long-term economic factor expected to have the most positive impact on Nicosia property values is sustained employment growth in government, education, and professional services, which keeps household formation strong and rental demand stable year-round.
The single long-term economic factor posing the greatest structural risk to Nicosia property values is Cyprus's small open economy status, which makes it vulnerable to external shocks like global trade disruptions or regional geopolitical tensions that could dent investor confidence and economic growth.
You'll also find a much more detailed analysis in our pack about real estate in Nicosia.
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 Nicosia, 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 housing price index for Cyprus. | We used it as our primary source for recent price direction by district and property type. We translated its index changes into practical insights for Nicosia buyers. |
| CYSTAT House Price Index | It's the national statistics office's official house price publication. | We used it to cross-check that national trends align with central bank data. We used it as a second independent signal to avoid relying on a single index. |
| Eurostat House Price Index | Eurostat is the EU's official statistics authority with consistent methodology. | We used it to benchmark Cyprus against the broader EU backdrop. We also used it to check whether Cyprus is in a "hot" or "cool" phase compared to peers. |
| European Central Bank (ECB) | It's the official source for euro-area policy rates that drive mortgage pricing. | We used it to anchor our interest rates section in actual policy settings. We mapped rate direction to affordability and buyer demand in Nicosia. |
| Central Bank of Cyprus (Interest Rates) | It's the central bank's official release on rates charged by Cyprus banks. | We used it to ground mortgage-cost discussion in Cyprus-specific lending conditions. We used it to explain why Nicosia's demand is rate-sensitive. |
| European Commission (Cyprus Forecast) | It's the EU's official forecasting framework for GDP, inflation, and demand drivers. | We used it to build our 2026 base-case scenario for jobs and incomes. We connected that scenario to housing demand projections for Nicosia. |
| IMF Cyprus Article IV Report | The IMF is a top-tier institution for macro and financial stability assessment. | We used it to identify downside risks and external shock scenarios. We used it to stress-test our 2026 and longer-term outlooks. |
| PwC Cyprus Real Estate Review | PwC is a major consultancy with analysis based on DLS transaction data. | We used it to ground our analysis in transaction volumes and buyer mix. We used it to explain why Nicosia behaves differently from coastal districts. |
| Department of Lands and Surveys (DLS) | It's the government body that records property transactions in Cyprus. | We used it as the authoritative anchor for sales activity data. We used it to validate claims from private analytics derived from registry records. |
| KPMG Cyprus (RICS Index) | It's a big-four firm publishing an established index under RICS standards. | We used it to triangulate price direction and sentiment by district. We used it as a private-but-institutional cross-check alongside official data. |
| RICS Cyprus Property Price Index | RICS is the global professional body that sets valuation standards worldwide. | We used it to explain index methodology in plain language. We used it to support statements about which segments are moving faster. |
| Republic of Cyprus Draft Budgetary Plan 2026 | It's an official government document with macro assumptions and investment priorities. | We used it to cross-check the base-case growth environment for 2026. We also used it to spot public investment themes relevant to Nicosia demand. |
| CYSTAT Population Statistics | It's the official population statistics source for Cyprus. | We used it to anchor the population and household-growth narrative. We used it to explain why Nicosia's demand is steadier than seasonal coastal markets. |
| EU Funds Portal (Nicosia Ring Road) | It's an official EU-funds portal describing funded infrastructure scope. | We used it to identify infrastructure that can shift commuting patterns. We used it to support our 5-year neighborhood growth projections. |
| Global Property Guide | It's a respected independent source for international property market data. | We used it to validate rental yield figures for Nicosia. We used it to cross-check our return calculations for investment properties. |
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If you want to go deeper, you can read the following: