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
Wondering if January 2026 is the right moment to buy property in Nicosia? You're not alone, and the answer depends on solid data, not just gut feelings.
In this guide, we break down the current housing prices in Nicosia, market trends, rental yields, and what signals actually matter for buyers right now.
We update this blog post regularly to keep it fresh and relevant for anyone considering a property purchase in Cyprus's capital.
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.
So, is now a good time?
Rather yes, January 2026 looks like a reasonable time to buy property in Nicosia, especially if you're targeting apartments in established renter neighborhoods or negotiating on houses.
The strongest signal is that Nicosia property prices are not overheating: overall prices were actually down 0.5% year-on-year in Q3 2025, with houses declining 2.7%, which gives buyers negotiating room.
Another strong signal is that mortgage rates in Cyprus dropped from 4.27% to 3.03% over the past year, making financing significantly more affordable than in 2024.
Rental yields remain solid at around 5.4% for apartments in Nicosia, transaction volumes are healthy with 981 sales in Q3 2025, and housing lending grew 22% year-on-year, all signs of a functioning market.
The smartest approach for January 2026 is to focus on 1 to 2 bedroom apartments in high-demand renter areas like Engomi, Aglantzia, or Strovolos, and if you're buying a house, negotiate harder because the data shows softness in that segment.
This is not financial or investment advice, we don't know your personal situation, and you should always do your own research before making any property purchase decision.
Is it smart to buy now in Nicosia, or should I wait as of 2026?
Do real estate prices look too high in Nicosia as of 2026?
As of early 2026, Nicosia property prices do not appear stretched by fundamentals, with the official Central Bank index showing overall residential prices actually fell 0.5% year-on-year in Q3 2025.
One clear signal from the market is that Nicosia houses have been declining for four consecutive quarters, reaching minus 2.7% year-on-year in Q3 2025, which suggests sellers are already adjusting expectations rather than holding out for peak prices.
Apartments in Nicosia tell a different story with modest 2.6% year-on-year growth, which is healthy but nowhere near "bubble" territory, especially when compared to much stronger price gains in coastal districts like Limassol and Paphos.
You can also read our latest update regarding the housing prices in Nicosia.
Does a property price drop look likely in Nicosia as of 2026?
As of early 2026, the likelihood of a sharp, broad-based price crash in Nicosia is low, but selective declines in certain property types and neighborhoods remain plausible over the next 12 months.
A realistic range for Nicosia property prices over the coming year would be somewhere between minus 3% and plus 4%, with houses more likely to drift lower and apartments more likely to hold steady or rise modestly.
The single macro factor that would most increase the odds of a price drop in Nicosia is a significant rise in mortgage rates, which would squeeze affordability and reduce buyer demand, especially for higher-priced properties.
However, this scenario looks unlikely in the near term because rates have actually been falling, with the weighted average mortgage rate in Cyprus dropping from 4.27% in September 2024 to 3.03% in September 2025, and the European Central Bank trajectory suggests stability rather than aggressive tightening.
Finally, please note that we cover the price trends for next year in our pack about the property market in Nicosia.
Could property prices jump again in Nicosia as of 2026?
As of early 2026, the likelihood of a renewed price surge in Nicosia is medium for apartments and low for houses, mainly because the capital's market is tied to local jobs and incomes rather than speculative foreign demand.
A plausible upside range for Nicosia property prices over the next 12 months would be around 3% to 6% for apartments in the best areas, while houses would likely remain flat or see only marginal gains.
The single biggest demand-side trigger that could push Nicosia prices higher is continued credit expansion, and the signs are there: new housing loans reached 972 million euros in the first nine months of 2025, up 22% year-on-year, which puts more buying power into the market.
Please also note that we regularly publish and update real estate price forecasts for Nicosia here.
Are we in a buyer or a seller market in Nicosia as of 2026?
As of early 2026, the Nicosia property market is more balanced than a pure seller's market, leaning buyer-friendly for houses while apartments remain closer to neutral.
While Cyprus does not publish a standard months-of-supply metric like some countries, the combination of healthy transaction volumes (981 sales contracts in Q3 2025) and softening house prices suggests that buyers have reasonable negotiating power, especially for detached and semi-detached homes.
Price reductions are more common in the house segment, where four consecutive quarters of decline indicate that sellers are already cutting asking prices to meet the market, while apartment sellers can still hold firmer due to steady renter demand.
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 Nicosia as of 2026?
Are homes overpriced versus rents or versus incomes in Nicosia as of 2026?
As of early 2026, apartments in Nicosia appear roughly fairly priced when comparing purchase costs to rents, while houses can look pricey unless you buy at a discount because their rental yields are much lower.
The price-to-rent ratio for Nicosia apartments works out to roughly 18 to 19 years of rent to equal the purchase price, which is reasonable for a European capital city and suggests apartments are not wildly overpriced relative to what tenants will pay.
The price-to-income multiple in Nicosia is harder to pin down precisely, but with average apartment prices around 2,000 to 2,300 euros per square meter in good areas and Cyprus median wages, affordability is stretched but not at crisis levels compared to coastal tourist markets.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Nicosia.
Are home prices above the long-term average in Nicosia as of 2026?
As of early 2026, Nicosia property prices are not behaving like an overheated outlier, with the Central Bank's district index showing the capital well below the aggressive price gains seen in Limassol, Larnaca, and Paphos.
The recent 12-month price change in Nicosia was minus 0.5% overall, which is notably slower than the pre-pandemic boom years and suggests the market is in a late-cycle cooling phase rather than building toward a new peak.
In inflation-adjusted terms, Nicosia property prices have likely given back some of their pandemic-era gains, especially for houses which have declined for four straight quarters, positioning the market closer to its historical trend than to a bubble peak.
Get fresh and reliable information about the market in Nicosia
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What local changes could move prices in Nicosia as of 2026?
Are big infrastructure projects coming to Nicosia as of 2026?
As of early 2026, the biggest infrastructure project likely to impact Nicosia property values is the Nicosia Ring Road Phase B3, which is expected to improve commuting times and shift demand toward well-connected suburban areas like Strovolos, Lakatamia, and Tseri.
The timeline for the Nicosia Ring Road Phase B3 runs from the second half of 2025 through the second half of 2028 according to the official EU Funds portal, meaning construction is already underway and completion should arrive within the typical property holding period for most buyers.
For the latest updates on the local projects, you can read our property market analysis about Nicosia here.
Are zoning or building rules changing in Nicosia as of 2026?
The most significant change affecting supply in Nicosia is not a single zoning headline but rather the shift toward larger multi-unit apartment projects, with official data showing fewer permits but more dwelling units authorized overall.
As of early 2026, this trend suggests that apartment supply in Nicosia will continue growing, which could cap price gains in neighborhoods without strong locational advantages like good schools or proximity to universities and embassies.
The areas most affected by this building pattern are suburban zones in Strovolos, Lakatamia, and parts of Aglantzia where larger plots allow for multi-story apartment blocks rather than single-family homes.
Are foreign-buyer or mortgage rules changing in Nicosia as of 2026?
As of early 2026, mortgage rules in Cyprus appear stable to slightly supportive, with the Central Bank reporting credit standards unchanged and expectations of higher loan demand, meaning financing conditions are not about to tighten and squeeze buyers.
The most relevant policy for Nicosia buyers is the reduced 5% VAT framework for primary residences on new builds, which remains in effect and is documented in official government guidance, giving owner-occupiers a meaningful cost advantage over investors.
No major foreign-buyer restrictions or new mortgage stress tests appear imminent based on current policy signals, so international buyers and local borrowers can plan without expecting sudden rule changes to disrupt their purchases.
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 Nicosia as of 2026?
Is the renter pool growing faster than new supply in Nicosia as of 2026?
As of early 2026, renter demand in Nicosia appears to be keeping pace with or slightly ahead of new rental supply, particularly for 1 to 2 bedroom apartments in neighborhoods with universities, embassies, and service-sector jobs.
The strongest signal of renter demand growth in Nicosia comes from record-level rents reported in government-linked surveys, with Engomi 2-bedroom apartments reaching around 900 euros per month and similar pressure across Aglantzia and Strovolos.
On the supply side, CYSTAT data shows dwelling units authorized are increasing even when permit counts fall, indicating that developers are building larger apartment projects, but these take time to complete and absorb, so current supply is not flooding the market.
Are days-on-market for rentals falling in Nicosia as of 2026?
As of early 2026, well-priced 1 to 2 bedroom apartments in prime Nicosia renter neighborhoods like Engomi, Aglantzia, and Strovolos typically find tenants within 3 to 6 weeks, while properties in weaker locations or older condition can take 6 to 10 weeks.
The difference in letting speed between best areas and weaker areas is significant, with modern apartments near universities or embassies in Engomi renting much faster than dated units in less convenient parts of greater Nicosia.
One key reason days-on-market stays low in Nicosia's top neighborhoods is steady year-round demand from students, public sector workers, and embassy staff, unlike coastal cities where rental demand can be more seasonal.
Are vacancies dropping in the best areas of Nicosia as of 2026?
As of early 2026, vacancy rates in Nicosia's best rental areas like Engomi, Aglantzia, Strovolos near Dasoupoli, and Agios Dometios are estimated at around 3% to 5% for well-maintained 1 to 2 bedroom apartments, which is tight by any standard.
These prime areas show lower vacancy than the broader Nicosia market because they combine walkable amenities, university proximity, and public transport access, making them consistently attractive to the tenant pool that drives demand.
One practical sign that Nicosia's best rental areas are tightening is that landlords are increasingly able to raise rents at lease renewal without losing tenants, a dynamic that only happens when alternatives are genuinely scarce.
By the way, we've written a blog article detailing what are the current rent levels 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.
Am I buying into a tightening market in Nicosia as of 2026?
Is for-sale inventory shrinking in Nicosia as of 2026?
As of early 2026, for-sale inventory in Nicosia does not appear to be shrinking dramatically city-wide, though tightness is more pronounced in specific micro-markets like renovated apartments with parking near good schools.
Cyprus does not publish a standard months-of-supply figure, but with 981 sales contracts recorded in Nicosia during Q3 2025 and the Central Bank noting that authorized residential units are increasing, supply appears adequate at the market level even if competition is fierce for the best properties.
The main reason inventory feels tighter in desirable Nicosia neighborhoods is buyer preference concentration: everyone wants modern, energy-efficient units in Engomi or Aglantzia, while older stock in less convenient areas sits longer.
Are homes selling faster in Nicosia as of 2026?
As of early 2026, well-priced apartments in prime Nicosia locations are selling in roughly 30 to 60 days, while family houses typically take 60 to 120 days due to more negotiation, condition issues, and financing complexity.
Year-over-year, selling times for Nicosia apartments appear stable or slightly faster given continued transaction momentum, while houses may be taking somewhat longer as buyers sense the price softness and push harder on terms.
Are new listings slowing down in Nicosia as of 2026?
As of early 2026, new for-sale listings in Nicosia do not appear to be slowing sharply, with permit data showing a pattern of fewer permits but more dwelling units, which means developers are focusing on larger apartment projects that will eventually add supply.
Nicosia's typical seasonal pattern sees more listings in spring and early autumn, with winter being quieter, so current listing volumes should be evaluated against this normal rhythm rather than assumed to signal a permanent slowdown.
Is new construction failing to keep up in Nicosia as of 2026?
As of early 2026, new construction in Nicosia appears to be gradually responding to demand, with the Central Bank expecting a gradual increase in supply based on authorized units, though high construction costs mean new builds will not be cheap.
The recent trend in permits shows dwelling units authorized from January to May 2025 were up 13.2% year-on-year even though the number of permits fell 14.4%, indicating a shift toward larger multi-unit apartment developments that will add meaningful supply over time.
The biggest bottleneck limiting new construction in Nicosia is elevated construction costs, which remain historically high even with only small annual increases, putting a floor under new-build pricing and limiting how much "affordable" supply can enter the market.
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 Nicosia as of 2026?
Is resale liquidity strong enough in Nicosia as of 2026?
As of early 2026, resale liquidity in Nicosia is solid for mainstream property types, with the capital consistently ranking as one of the highest-transaction districts in Cyprus at 981 sales contracts in Q3 2025 alone.
Well-priced resale apartments in Nicosia typically sell within 30 to 90 days, which is healthy liquidity by European standards, while houses may take longer but still find buyers if priced realistically given the current soft trend.
The property characteristics that most improve resale liquidity in Nicosia are location near universities or embassies, modern condition with energy efficiency features, and dedicated parking, as these align with what the active buyer pool is seeking.
Is selling time getting longer in Nicosia as of 2026?
As of early 2026, selling time in Nicosia appears to be lengthening for houses, which have declined in price for four consecutive quarters, while apartments are holding steady with selling times remaining in the 30 to 60 day range for well-priced units.
The current median days-on-market in Nicosia ranges from roughly 30 days for desirable apartments to 90 to 120 days for family houses, with the gap widening as buyers sense they have negotiating leverage in the house segment.
One clear reason selling time can lengthen in Nicosia is affordability pressure: when mortgage rates were higher in 2024, some buyers delayed purchases, and any reversal of the current rate decline could slow transactions again.
Is it realistic to exit with profit in Nicosia as of 2026?
As of early 2026, the likelihood of exiting with profit in Nicosia is medium for apartments (thanks to steady rental income and modest appreciation) and lower for houses unless you buy at a meaningful discount to current asking prices.
A realistic minimum holding period to exit with profit in Nicosia is around 5 to 7 years, which allows time for rental income to accumulate and for transaction costs to be absorbed, especially given the current flat-to-softening price trend.
Total round-trip costs for buying and selling property in Cyprus typically run 8% to 12% of property value, covering transfer fees, legal costs, agent commissions, and taxes, which in euros on a 200,000 euro apartment means roughly 16,000 to 24,000 euros.
The clearest factor that increases profit odds in Nicosia is buying below market value, particularly by targeting houses where sellers are already adjusting expectations, or by focusing on apartments in high-yield renter areas like Engomi where rental income provides a buffer during the holding period.
Get the full checklist for your due diligence in Nicosia
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
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 Q3 2025 | It's Cyprus's central bank publishing the official, widely cited house-price index. | We used it to measure whether prices are rising or cooling and to compare Nicosia with other districts. We also extracted mortgage rate and housing loan growth figures from the same report. |
| Central Bank of Cyprus Bank Lending Survey October 2025 | It's the central bank's official survey of credit standards and loan demand. | We used it to judge whether banks are tightening or easing mortgages going into 2026. We inferred whether financing conditions will support or pressure property prices. |
| CBC Interest Rates Statistics May 2025 | It's the official central bank release for lending and deposit rates. | We used it to confirm that mortgage borrowing costs remain higher than pre-hike years. We framed affordability risk for 2026 buyers based on these figures. |
| Eurostat House Price Index | Eurostat is the EU's statistical authority and HPI is the standard benchmark. | We used it to compare Nicosia's price dynamics against broader EU and euro area trends. We avoided local-only conclusions that miss the macro picture. |
| CYSTAT Building Permits May 2025 | It's the official national statistics agency publishing housing supply data. | We used it to see whether housing supply is expanding or constraining. We analyzed dwelling-unit and permit trends to assess "tightening market" risk. |
| CYSTAT Official Portal | It's the primary gateway for all Cyprus statistical publications. | We used it to verify that the building permits release is an official CYSTAT document. We referenced it for methodology and data definitions. |
| Gov.cy Reduced 5% VAT User Guide | It's the Cyprus government's official guidance on VAT eligibility. | We used it to assess whether tax rules create demand surges. We grounded buyer cost calculations in official policy rather than hearsay. |
| PwC Cyprus VAT Circular Summary | PwC is a major global advisory firm citing the Tax Commissioner's circular. | We used it to cross-check how the reduced VAT framework applies in practice. We translated policy into buyer-friendly implications for 2026. |
| Cyprus Draft Budgetary Plan 2026 | It's an official government macro-fiscal plan submitted under EU rules. | We used it to set the economic backdrop for housing demand in 2026. We relied on it as the official baseline to avoid speculative macro claims. |
| In-Cyprus Infrastructure Coverage | It's a mainstream national outlet reporting on government plans. | We used it to identify Nicosia-specific projects that can shift neighborhood desirability. We only referenced claims tied to official government announcements. |
| EU Funds Portal Nicosia Ring Road | It's an official program portal listing budgets and timelines for EU-funded projects. | We used it to confirm dates and budgets for a major Nicosia transport upgrade. We linked infrastructure talk to a real, scheduled pipeline. |
| Cyprus Mail Property Sales Coverage | It's a major national newspaper reporting Department of Lands data. | We used it to check transaction momentum heading into 2026. We supported our buyer-versus-seller market read with official sales figures. |
| In-Cyprus Rental Survey Coverage | It's a mainstream outlet citing an Interior Ministry-linked rental survey. | We used it to get neighborhood-level rent examples for Nicosia. We estimated implied values using these rents combined with RICS yields. |
| RICS/KPMG Cyprus Property Index Q1 2025 | RICS is the global chartered surveyors' body and KPMG is a major audit firm. | We used it to anchor realistic gross yields for apartments and houses. We bridged rents and implied values when direct price data was patchy. |
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.
Related blog posts
- What are the best areas to buy a property in property in Nicosia?