The Cyprus real estate landscape continues to demonstrate notable upward trends in both construction expenses and residential apartment pricing. These developments are largely influenced by increased costs of materials, persistent demand, and the resilience of the building sector, according to current industry insights from Ask Wire.
CEO Pavlos Loizou of Ask Wire highlights several key contributors fueling escalating construction costs. These include surging international prices for steel and copper, hikes in energy prices, ongoing supply chain constraints, and steady construction activity across the island. Together, these factors are pushing the cost of building materials higher, impacting overall property development expenses.
Data from the Central Bank of Cyprus reports a substantial 10.8% year-over-year rise in apartment prices during the first quarter of 2026, alongside a more moderate 3% increase in house prices.
Ask Wire’s transaction data also reveals strong regional variations in average apartment prices for the first half of 2026:
Limassol remains the priciest apartment market, reflecting its luxury beachfront developments and upscale towers. Paphos ranks next, followed by Nicosia, Larnaca, and Famagusta in descending order.
Loizou points out that while Nicosia’s growth is largely driven by domestic buyers, apartment prices continue to gain momentum compared with the previous year. Typical two-bedroom apartments (75-90 sqm) generally trade close to the average prices for their districts, with factors like location, age, energy efficiency, and coastal proximity shaping final values.
Larnaca is experiencing the steepest annual apartment price growth at approximately 8.9%, while price appreciation is moderating in Limassol and Paphos.
In the first half of 2026, Larnaca recorded the highest volume of apartment transactions in Cyprus, totaling 1,521 deals. This strong market momentum is attributed to:
According to Loizou, demand for Cypriot properties remains solid with no signs of decline. Property transaction volumes hit a 17-year peak in 2025, with sales valued at €4.7 billion, and this trend is continuing into 2026.
First quarter sales contracts rose by 13.8%, with Ask Wire data showing vibrant activity across all districts. Foreign buyers, who account for up to 75% of sales in areas like Paphos, continue to lead the market. Domestic demand is also strengthening, boosted by a 24.5% increase in housing loans and mortgage rates easing to about 3.15%.
The strongest buyer interest remains concentrated on modern, energy-efficient one and two-bedroom apartments close to the sea, highlighting sustainability and location as key selling points.
Loizou anticipates property price growth throughout 2026, albeit at a slower pace, with an expected annual increase between 3% and 5% across Cyprus.
Larnaca is projected to outperform the national average, bolstered by its ongoing demand and growth drivers. Newer apartments featuring strong energy-efficiency ratings are forecasted to see price growth ranging from 4% to 6%.
Although reduced interest rates support continued demand, factors such as affordability challenges, limited housing supply, and geopolitical uncertainties are likely to temper the pace of price rises. Additionally, luxury properties in the higher-end market may experience slower growth due to buyer caution.
Overall, the Cyprus property market is expected to remain resilient, with steady appreciation and no immediate risk of a significant price correction.
For buyers exploring entry points into this evolving market, cheap apartments for sale in Cyprus and affordable houses and villas offer promising opportunities amid growing price trends.
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