Investment
Cyprus Property Investment 2026 – Numbers, Growth and Realistic Forecasts
The Cyprus real estate market is no longer a quiet recovery story. The numbers from 2025 and the first half of 2026 show a market that has become larger, more liquid and more selective at the same time.
The headline figures
- In 2025 the total value of property transactions reached approximately €6.5 billion, an 8% increase on the previous year.
- The number of transactions hit 25,600, up 4%.
- In the first six months of 2026 alone, 10,007 sale contracts were registered — a 14.6% rise compared with the same period in 2025 and the strongest half-year on record.
- Foreign buyers accounted for roughly 28–40% of transactions depending on the source and district, with particularly high concentrations in Paphos, Larnaca and Limassol.
Apartments continue to outperform houses. In Q1 2026 apartment prices rose 10.8% year-on-year according to the Central Bank, while house prices increased by only 3%.
Where the growth is concentrated
Larnaca currently shows some of the strongest momentum. Apartment prices there rose around 8.9% over the past year, and the city recorded the highest number of apartment transactions in the first half of 2026 (1,521). Limassol remains the most expensive and most liquid market, especially at the higher end. Paphos continues to attract a very high share of foreign buyers.
Gross rental yields in early 2026 sat at approximately:
- Apartments: 5.4–5.5%
- Houses/villas: just under 3%
- Offices: around 5.6%
Short-term holiday lets in good coastal locations can still deliver higher gross figures (often 7–10%+ in peak season), but net returns after management and void periods are usually closer to the long-term range.
What the forecasts say
Most professional outlooks for the rest of 2026 and into 2027–2028 point to continued but more moderate growth rather than a boom. Island-wide residential price increases are generally expected in the 3–6% range for the full year, with modern, energy-efficient apartments and well-located coastal stock performing at the higher end of that band.
Key supporting factors remain:
- Ongoing foreign demand (including Golden Visa-related purchases)
- Relatively attractive financing conditions compared with much of the eurozone
- Limited high-quality new supply in prime locations
- The structural appeal of Cyprus as an EU base with favourable tax rules for non-domiciled residents
What this means for investors in practice
The market has become more professional and more competitive. The days of easy double-digit annual appreciation across the board are over. Returns now depend heavily on micro-location, property type and whether the asset also serves a residency or lifestyle purpose.
For pure yield, well-chosen apartments in Larnaca and selected parts of Limassol and Paphos still look reasonable. For capital growth and liquidity, Limassol continues to lead. For a combination of lifestyle and long-term hold, many international buyers are still focusing on new qualifying stock that also meets the Golden Visa criteria.
The data suggests a market that is no longer cheap, but still functional — with clear differences between locations and asset types that reward proper research rather than broad assumptions.