The Cyprus real estate sector experienced a notable downturn in the second quarter of 2026, marked by a significant reduction in sales volumes and transaction values. However, this decline does not indicate a market standstill. Instead, there’s a clear trend of buyers gravitating towards more affordable properties, with some districts showing remarkable stability and even growth.
New-build apartment and house sales contracts dropped sharply from 2,277 in Q1 to 1,317 in Q2, a 42.2% decrease. Correspondingly, the total value of these transactions plunged 46.6%, falling from €748.6 million to €400.1 million. This equates to 960 fewer contracts signed quarter-over-quarter.
The average contract value also edged down by 7.6%, landing at €303,808 in Q2, while median contract values declined by 6.3% to €224,850. Notably, the highest recorded sale value plummeted from €13 million in Q1 to €4.69 million in Q2, signaling a cooling at the ultra-luxury end. Meanwhile, the lowest sale price rose from €42,000 to €55,000.
Apartments experienced a 5.5% drop in average value to €262,574, with median prices down 7.3% to €204,000. Houses saw deeper declines: average prices fell 12.7% to €501,800 and median values slipped 10.5% to €340,000.
The most marked change in buyer behavior was the surge in activity within the lower price segments. Properties priced under €300,000 accounted for a commanding 68.1% of all new-build sales in Q2, up 5.5 percentage points from Q1.
The mid-tier bracket (€300,000 – €499,999) conversely shrank from 27.1% to 23.1%. Within the lower brackets, the strongest gains belonged to homes priced between €150,000 and €199,999, which increased from 21% to 24.8% of sales. Properties priced €200,000 to €299,999 also grew their market share from 27.1% to 28.2%, while sales under €150,000 edged up slightly.
This data underscores the growing importance of affordability in the Cyprus property market, channeling demand more towards value-driven segments. For buyers exploring budget-friendly options, check out our Cheap Apartments for Sale Cyprus offerings.
The capital city emerged as a standout performer, increasing its share of new-build contracts from 26.7% to 34.5% between Q1 and Q2. Even more striking was Nicosia’s total transaction value leap from 17.1% to 26.2% of the nationwide figure. The average transaction value in Nicosia rose 9.3%, with the median price steady at €185,000.
Limassol, while still leading in total sales value, saw its share dip from 40.8% to 32.4%. Larnaca kept a solid footing with a median transaction value around €190,000 and a small increase in market share. Meanwhile, Paphos maintained the highest median prices at €352,500 but experienced a slight slide in total market share.
Explore listings in these regions here: Limassol, Nicosia, Paphos.
Limassol hosted the highest number of contracts (129), followed by Aradippou (122) and Lakatamia (92). Yet the rate of decline varied significantly. Lakatamia suffered the smallest drop among busy districts at 14.8%, with Aradippou and Latsia down 17.6% and 24%, respectively—considerably better than the overall 42.2% drop across Cyprus.
The differing trajectories across locations highlight the influence of price levels, proximity, property type mix, and market supply and demand dynamics.
Contrary to the general trend, several areas saw increased sales and rising values. Agios Dometios buses activity by 22.6%, with median property prices climbing 7.7% to €154,000. Similarly, Dali’s transactions grew by 15.8%, and median prices rose 8.1% to €194,500.
The Municipality of Nicosia remained stable, with just a 4.4% drop in contract numbers but a 31.3% increase in total transaction value. Average contract values in the municipality surged 37.4%.
Ypsonas also demonstrated resilience, with only a 9.1% decline in sales volume.
While overall sales declined, high-end properties remained active. Germasogeia reported 43 sales totaling €27.6 million in Q2, with an average price of €640,970 and a median of €400,000. Year-to-date, Germasogeia recorded 132 transactions worth €89.1 million, with a median value of €472,500.
Potamos Germasogeia saw even prouder figures: median sales at €600,000 and average values around €838,783.
Pegeia led all areas with at least 10 transactions, posting a median price of €855,000 and an average exceeding €1 million.
The upper-tier property market remains buoyant, showing a degree of independence from broader market trends. Browse our extensive Villas collection for premium options.
Q2 2026 reflects a Cyprus property market undergoing adjustment rather than a drastic retreat. While total sales and values decreased sharply, demand patterns changed noticeably, favoring affordable homes and shifting regional preferences.
Nicosia’s expanding market share, pockets of local growth, and continued luxury activity highlight a multifaceted landscape. As Landbank Analytics‘ CEO Andreas Christoforides aptly noted, true market appeal depends on sales volume, resilience, median prices, and housing mix.
For those seeking opportunities across price ranges and locations, resources like Cheap Houses and Villas for Sale Cyprus can be invaluable for uncovering hidden gems in a shifting market.
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