Cyprus house prices rose 8.5 per cent year on year in the second quarter of 2026, with demand from foreign and domestic buyers continuing to support the market, according to the Central Bank of Cyprus (CBC).

The CBC’s general residential property price index reached 109.7, while prices were 2.4 per cent higher quarter on quarter.

The central bank attributed the increase mainly to strong demand for residential property, particularly from foreign buyers, as well as continued domestic demand and higher construction costs.

House prices rose 5.8 per cent year on year, while apartment prices increased by 8.9 per cent.

Annual price growth accelerated in all districts except Limassol.

Famagusta recorded the strongest increase at 10 per cent, followed by Larnaca at 9.8 per cent and Paphos at 9.6 per cent.

Prices rose 7.8 per cent in Limassol and 5.7 per cent in Nicosia.

Demand also strengthened during the quarter.

A total of 5,298 sale contracts were deposited with the department of lands and surveys, up 15.4 per cent from 4,592 in the second quarter of 2025.

According to the CBC, the increase was driven mainly by stronger demand from foreign buyers, while domestic demand also rose, though at a slower pace.

On the supply side, building activity also increased.

Approved residential units covered by building permits reached 8,978 in the first five months of 2026, up 63.7 per cent from 5,484 in the same period of 2025.

The CBC also cited the European Commission’s June economic sentiment survey, which showed construction activity remaining in positive territory, pointing to a gradual increase in housing supply.