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Cyprus’ housing crisis remains one of the most pressing challenges facing the country, as more and more citizens struggle to find a home that matches their income and financial capacity.
The sharp rise in residential property prices in recent years has placed homeownership increasingly out of reach for many Cypriots, while the Government faces mounting public frustration over the lack of affordable housing options.
Latest data from the Central Bank of Cyprus show that the pressure continued during the first quarter of 2026, with house and apartment prices maintaining their upward trajectory. The figures suggest that the affordability crisis is unlikely to ease in the near future.
A key factor behind the continued rise in prices is strong demand from foreign buyers and investors, many of whom have significantly greater purchasing power than local households. This has further widened the gap between the cost of buying a home and the financial means of many Cypriot families.
Property prices continue to rise
According to the Central Bank of Cyprus, the overall Residential Property Price Index continued to increase during the first quarter of 2026, supported by sustained demand for residential properties.
Foreign buyers accounted for the largest share of demand, while domestic demand remained comparatively weaker. Rising construction costs also contributed to the increase in property prices.
The overall residential property price index, which includes both houses and apartments, rose by 2.3% on a quarterly basis during the first quarter of 2026, following a 2.4% increase in the final quarter of 2025.
House prices increased by 1.5% over the quarter, while apartment prices rose by 2.4%.
On an annual basis, apartment prices recorded a significant increase of 10.8%, compared with a more moderate rise of 3.0% in house prices.
Regional differences
Across the districts, annual price growth accelerated in Nicosia, where the Residential Property Price Index rose by 2.8%, and in Larnaca, where it increased by 8.9%.
Growth slowed in Limassol, although prices still rose by 9.1%, while Paphos recorded an annual increase of 6.4%. In Famagusta, no change was recorded compared with the fourth quarter of 2025.
A closer look at house prices shows that Limassol recorded a slower pace of growth, with prices rising by 2.4% annually. House prices increased by 5.1% in Larnaca and 5.2% in Paphos, while Nicosia recorded an annual increase of 1.8%. Famagusta was the only district to register a decline, with house prices falling by 0.7%.
Apartment prices continued to be the main driver of the market. Limassol recorded an annual increase of 10.7%, while Larnaca registered growth of 11.7%. Apartment prices also rose by 6.4% in Paphos and 1.3% in Famagusta. In Nicosia, apartment prices maintained the same annual rate of increase as in the previous quarter, at 3.0%.
Foreign buyers drive property sales
Despite the rising cost of housing, property transactions continued to increase.
Data from the Department of Lands and Surveys show that sales contracts rose by 13.8% year-on-year during the first quarter of 2026, reaching 4,709 compared with 4,137 in the corresponding period of 2025.
However, the increase was driven primarily by foreign buyers.
Sales to foreign buyers rose by 22.3% year-on-year, reaching 2,044 properties, compared with 1,671 in the first quarter of 2025.
Sales to domestic buyers increased at a slower rate of 8.1%, reaching 2,665 properties, up from 2,466 during the same period last year.
Limassol recorded the highest number of property transactions, with 1,499 sales, followed by Nicosia with 1,065, Larnaca with 994 and Paphos with 919. Famagusta recorded the lowest number of sales, with 232 transactions.
Domestic buyers still account for the majority of purchases in Nicosia, where they represent 84% of all transactions. They also account for approximately 60% of purchases in Limassol and Famagusta.
In Larnaca, the balance between domestic and foreign buyers remains relatively even. In Paphos, however, foreign buyers continue to dominate the market, accounting for approximately 75% of property purchases.
The figures underline the growing pressure on Cyprus’ housing market, with high prices, increased construction costs and strong foreign demand continuing to make homeownership increasingly difficult for local residents.