Apartment Prices in Cyprus Up 10,8% in a Year: What Is Driving the Growth

According to the Central Bank of Cyprus House Price Index (Q1 2026), apartment prices rose 10,8% year-on-year — almost 3,6 times faster than houses (+3%). The overall residential property index gained 7,5%.

Why Apartments Are Outpacing Houses

The structure of demand answers this question unambiguously: 82% of new residential transactions in Cyprus are apartments. It is this segment that concentrates foreign buyers, rental investors and corporate tenants — the groups generating upward price pressure.

In parallel: foreign purchases in Q1 2026 rose 22,3% year-on-year, while local transactions grew by only 8,1%. External demand is concentrated in apartments, not houses.

Mortgages as a Demand Accelerator

Mortgage rates in Cyprus have fallen to 3,15% (from 3,53% a year earlier) — a record low for this market within the EU. The volume of new housing loans grew 24,5% to €353,6 million. Accessible financing is spurring both end buyers and leveraged investors.

Transaction Volumes: Growth Across the Board

In Q1 2026, 4 709 transactions were registered (+13,8% year-on-year). Limassol leads by volume (1 499 transactions). Larnaca posted overall price growth of +8,9% — one of the most active markets in terms of price dynamics.

Takeaway for Investors

Apartments are the most liquid and profitable segment of the Cyprus market right now. With price growth of +10,8% a year and rental yields of 4–8% per annum, the combined return on apartments in 2026 remains among the best in the EU. A 3,15% mortgage further improves the model for buyers using financing.

*Source: Cyprus Mail*