Cyprus Insights/Investment & Market Trends
Cyprus Real Estate Market Forecast 2027: Prices, Sales and Supply
Short answer: Cyprus house prices were 7.9% higher in the second quarter of 2026 than a year earlier on the official index, and 8.5% higher on the Central Bank's index. Sales are running 14% ahead of 2025, and foreign buyers sign about two contracts in five. We do not publish a single price forecast for 2026 or 2027, because nobody can give you one that holds. What the data do show is strong demand now, a sharp rise in the number of homes being permitted, and a city-by-city spread you can measure.
This page sets out the latest figures with their sources, what has moved in each city, the supply risk that analysts are pointing to for 2027 and 2028, and how to make a purchase decision that does not depend on a forecast being right.
Cyprus property market in numbers, autumn 2026
| Indicator | Latest figure | Source |
|---|---|---|
| Official house price index, Q2 2026 | 105.46 (2025 = 100); +7.9% on Q2 2025, +2.4% on Q1 2026; new dwellings 105.73, existing 105.10 | Cyprus Statistical Service |
| Central Bank residential price index, Q2 2026 | 109.7; +8.5% on a year earlier, +2.4% on the quarter; houses +5.8%, apartments +8.9% | Central Bank of Cyprus |
| Contracts of sale deposited, January–September 2026 | 14,969, which is 1,796 more than in the same months of 2025; 2025 as a whole had 18,114 | Department of Lands and Surveys, analysed by Bazaraki |
| Contracts signed by foreign buyers, January–September 2026 | 6,267 or 41.9%: 4,173 by buyers from outside the EU and 2,094 by EU citizens | Department of Lands and Surveys, analysed by Bazaraki |
| Residential units approved in building permits, January–May 2026 | 8,978, up 63.7% from 5,484 a year earlier | Central Bank of Cyprus; Ask Wire |
The two price indexes differ in method, so they do not match: the Statistical Service uses a hedonic regression over a rolling four-quarter window and the Central Bank has its own index. Both point the same way. The detail is in the Statistical Service release, the Central Bank figures as reported by Cyprus Mail and the nine-month sales analysis.
Sales have outsold the same month of the previous year in every month of 2026. July 2026 was the largest month on record with 2,040 contracts, and September, at 1,681, was the strongest September recorded. Completed transfers lag the contracts: between January and July the Department registered 11,522 transfers with a declared value of €2.70 billion, 57% of the €4.7 billion transferred in the whole of 2025.
Cyprus property prices and sales by city
| City (district) | Price growth, Q2 2026 on Q2 2025 | Contracts, Jan–Sep 2026 (change on 2025) | Foreign share of contracts, Jan–Jul | Median asking price per m² in our listings |
|---|---|---|---|---|
| Limassol | +7.8% | 4,860 (+17%) | 36.5% | €5,564 |
| Paphos | +9.6% | 2,999 (+18%) | 69.8% | €5,100 |
| Larnaca | +9.8% | 3,291 (+15%) | 46.6% | €4,218 |
| Nicosia | +5.7% | 3,163 (+6%) | 15.9% | Too few new-build listings to report |
| Famagusta district | +10.0% | 656 (+5%) | 46.5% | Not reported |
Growth accelerated in every district except Limassol, according to the Central Bank, although Limassol is still the largest market, with about one contract in three and 40% of the money transferred between January and July. Larnaca has the fastest recent growth in sales: its September contracts rose 29% on the year. Paphos is the most foreign market in the country, with buyers from abroad signing about 70% of its contracts, against about 16% in Nicosia.
The last column is our own measurement, not an index. It is the median asking price per m² of the apartments in the published projects of our database on 6 November 2026, before VAT, interior area where the listing gives it. It measures what developers ask today, not what prices did, so use it to compare cities, not to read a trend. At those medians €300,000 buys about 54 m² in Limassol, 59 m² in Paphos and 71 m² in Larnaca. The apartment-level comparison is in where to live in Cyprus and Paphos or Larnaca.
What could change Cyprus property prices in 2027 and 2028
Four things decide the next two years. None of them is a number we can forecast; each is one you can watch.
Supply is rising fast
Building permits covered 8,978 residential units in the first five months of 2026, 63.7% more than in the same period of 2025, and the permitted units in Larnaca rose from 953 to 2,342. Projects permitted in earlier years are already being completed; the latest wave could reach the market in 2027 and 2028. The Central Bank reads the permits as a gradual increase in housing supply. The chief executive of the analytics firm Ask Wire is more cautious about the part of the pipeline aimed at foreign buyers, and he sees little sign of oversupply in homes for local buyers; the argument is set out in Cyprus Mail. Whether new supply is absorbed depends on foreign buyers continuing to arrive, who now sign 42% of contracts.
Foreign demand is the swing factor
Cyprus attracts buyers with its tax regime, the relocation of international businesses and its geopolitical position. These are conditions, not guarantees. The share of foreign buyers differs by city, from about 16% in Nicosia to about 70% in Paphos, so a fall in foreign demand would not touch the cities equally: it would hit Paphos hardest.
Building costs set a floor under new-build prices
The Central Bank names higher construction costs, with foreign demand, as a reason for the rise in prices. Higher costs support the asking price of new homes; they do not stop a developer from discounting to fill a project.
What to check each quarter
The Central Bank and the Statistical Service publish a price index every quarter, and the Department of Lands and Surveys figures show the number of contracts each month. If contracts fall for several months while permits stay high, supply is outrunning demand. If both stay strong, expect prices to keep rising.
How to buy in Cyprus without depending on a forecast
A price forecast is a bet. A purchase can be built so that it still works if the forecast is wrong.
- Count the VAT. A new-build carries 19% VAT, or 5% on the first 130 m² of a qualifying main home. A buyer of a €300,000 new-build pays €357,000 at 19%, and a later resale between private persons carries no VAT, so the resale price has to reach about €357,000 before the buyer has recovered the amount paid, before any other fee. At the 5% rate the amount paid is €315,000. See Cyprus property VAT explained.
- Test the arithmetic on both sides. On a €300,000 apartment, the official year-on-year change of +7.9% would add about €23,700 in a year, and a fall of 5% would take away €15,000. Neither is a prediction; they show how large a move has to be to matter next to what the purchase itself costs. The costs are in the cost of buying property in Cyprus.
- Match the product to the time you will hold it. A home you will live in for ten years is less exposed to the next two years of supply than a unit bought to resell at handover. How the two routes compare is in new-build or resale in Cyprus, and the risks of paying in instalments in the off-plan guide.
- Know your budget before you pick a city. How much money you need to buy property in Cyprus works through the cash needed for a €300,000 purchase.
Tell us your budget and the city and we will send current new-build projects with the price per m² beside the city medians above.
They have been rising: the official index was 7.9% higher in the second quarter of 2026 than a year earlier and the Central Bank's index 8.5% higher. We do not publish a forecast for the rest of 2026 or for 2027, because supply, foreign demand and building costs can all shift.
In the second quarter of 2026, on the Central Bank's figures, Famagusta district grew 10.0%, Larnaca 9.8% and Paphos 9.6%, ahead of Limassol at 7.8% and Nicosia at 5.7%. Limassol remains the largest market by number of sales.
Analysts point to it as the risk to watch. Permits for 8,978 residential units were issued in the first five months of 2026, up 63.7% on 2025, and the latest wave could reach the market in 2027 and 2028. The concern is concentrated in homes aimed at foreign buyers; sales are currently running 14% ahead of 2025.
41.9% of the contracts of sale deposited between January and September 2026: 4,173 by buyers from outside the EU and 2,094 by EU citizens. In Paphos the share is about 70% and in Nicosia about 16%.
That depends on how long you will hold the property and whether you can pay the 19% VAT or qualify for 5%, not on a forecast. Prices and sales are rising, and a large number of new homes are coming in 2027 and 2028, so buyers who can wait and compare projects have more choice.
Cyprus property market outlook: what we can say
Prices are rising at about 8% a year on the two official measures, sales are at record levels and foreign buyers account for two contracts in five. The main thing that could change the picture is the supply now being permitted, and its effect will show in the figures before it shows in the news. Check the Central Bank's quarterly index and the monthly contract count, and treat any article that offers a single number for 2027 with caution.
