Cyprus Property Market Hits Highest Sales Since 2008
Content
The Cyprus property market expanded during the first half of 2026, supported by a combination of domestic demand, international buyer activity, business relocation trends, and a strengthening rental sector. Recent data from the Department of Lands and Surveys and the RICS Cyprus Property Index with KPMG in Cyprus indicate that the market fundamentals remain strong, with transaction volumes reaching their highest January–May level since 2008.
While property values rose at a moderate pace during Q1, sales activity accelerated further in the following months, reflecting broad-based demand rather than speculative market conditions.
Key Market Highlights
- 8,043 property sale contracts were deposited between January and May 2026.
- Property sales reached their highest level since 2008.
- Foreign buyers accounted for 41% of all property transactions.
- Apartment prices increased by 4.09% year-on-year.
- Apartment rental rates rose by 5.1% annually.
Residential Properties Lead Market Performance
According to the RICS Cyprus Property Index, apartments were the strongest-performing asset class during Q1 2026, recording the highest annual increase in values among all major property categories. Houses and warehouses also posted solid gains, while offices recorded more moderate appreciation.
Annual Property Price Growth by Property Category
| Property Type | Annual Change |
| Apartments | +4.09% |
| Houses | +3.60% |
| Warehouses | +3.48% |
| Offices | +2.91% |
| Retail Premises | +0.72% |
Despite differences across segments, the Cyprus real estate market as a whole continues to demonstrate balanced growth without sharp price fluctuations. Positive performance is evident across nearly all property categories, reflecting a healthy market environment and sustained demand. For buyers, this creates opportunities to invest in assets with predictable value appreciation, while for property owners, it supports the preservation and gradual increase of asset capitalisation.
Property Sales Reach Highest Jan–May Level Since 2008
Transaction activity was among the market’s strongest indicators. Between January and May 2026, 8,043 property sale contracts were deposited, representing the highest level recorded for the period since 2008.
Foreign purchasers accounted for over 41% of all transactions, confirming the increasingly international profile of the Cyprus real estate market.
Property Sales by Buyer Category (January–May)
| Year | Domestic Buyers | EU Buyers | Non-EU Buyers | Total Sales |
| 2020 | 1432 (54.5%) | 393 (15%) | 801 (30.5%) | 2626 |
| 2021 | 2482 (69.4%) | 519 (14.5%) | 576 (16.1%) | 3577 |
| 2022 | 2935 (57.7%) | 1022 (20.1%) | 1133 (22.3%) | 5090 |
| 2023 | 3370 (53.6%) | 763 (12.1%) | 2159 (34.3%) | 6292 |
| 2024 | 3781 (60.7%) | 720 (11.6%) | 1730 (27.8%) | 6231 |
| 2025 | 4373 (60.9%) | 908 (12.6%) | 1904 (26.5%) | 7185 |
| 2026 | 4708 (58.5%) | 1113 (13.8%) | 2222 (27.6%) | 8043 |
The data suggests that growth is being supported by both domestic and international demand, reducing reliance on any single buyer segment and contributing to market stability.
Foreign Buyer Demand Shapes the Market
International demand remains one of the key drivers of market activity, particularly in coastal regions. The strongest growth in the number of EU buyers was recorded in Paphos (+46%) and Larnaca (+31%), while the number of non-EU buyers increased across all regions of Cyprus. Famagusta recorded the highest growth rate among non-EU buyers, at +30%.
Paphos remains the most internationally oriented region of Cyprus, where foreign demand significantly exceeds local buyer activity. Limassol continues to serve as the island’s primary hub for business and corporate relocation. Larnaca also deserves special attention, as it is increasingly viewed as an attractive alternative to the more expensive markets of Limassol and Paphos. For investors, this creates new opportunities to acquire property in a region undergoing active development and offering strong potential for future value appreciation.
The broadening geographical distribution of international demand reduces the market’s reliance on individual regions and provides a stronger foundation for sustainable property value growth across the island.
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Rental Market Strengthens Investment Fundamentals
In the first quarter of 2026, the strongest growth in rental rates was recorded in the apartment segment (+5.1%), reflecting strong demand for housing. Rental rates also increased across office properties, residential houses, warehouse facilities, and holiday properties.
At the same time, rental yields have remained stable despite rising property prices. This is an important sign of a healthy market: property values are increasing alongside rental demand rather than outpacing it. Such conditions create a favourable environment for both property owners and investors, offering the potential for steady rental income as well as gradual capital appreciation over the long term.
Conclusion
The results of the first five months of 2026 indicate that the Cyprus real estate market continues to grow steadily. The number of transactions reached 8,043, the highest figure for the January–May period since 2008. At the same time, more than 41% of all purchases were made by foreign buyers, highlighting the strong international appeal of Cyprus real estate.
Importantly, the market is supported by several sources of demand, including local buyers, EU investors, and purchasers from non-EU countries. Moreover, international interest is increasingly extending beyond the traditional market centres. For example, the number of EU buyers increased by 46% in Paphos and by 31% in Larnaca, confirming the growing attractiveness of these regions.
Overall, the current indicators point to a healthy market environment: transaction volumes are at record levels, price growth remains moderate, and rental demand continues to support the investment appeal of real estate. For buyers, this means a greater likelihood of further value appreciation in quality properties, while investors can benefit from a combination of capital growth and stable rental income.
Expert Guidance for Property Investment in Cyprus
Feod Group advises private and corporate clients on the acquisition, ownership, and sale of real estate in Cyprus, helping structure investments in line with their long-term objectives.
- Analysis of transaction structures, tax implications, and potential risks before any documents are signed.
- Advice on property ownership, asset protection, and international tax planning.
- Assistance with obtaining Cyprus Permanent Residency through real estate investment.
- Representation of clients’ interests throughout all stages of the transaction.
Contact the experts at Feod Group for a consultation on real estate investments in Cyprus.
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