What are the forecasts for property prices in Cyprus in 2026?

The question of property prices in Cyprus in 2026 is coming up more and more often. And it is not just about numbers in reports — you can hear it in conversations with buyers as well. The market looks calm on the surface, without sharp movements, yet inside there is a steady tension. The Cyprus real estate market continues to live under the pressure of strong demand and limited supply.

According to forecasts, the Cyprus property price forecast for 2026 appears restrained but confident. On average across the island, prices are expected to grow by 3-8%, without signs of overheating or decline. At the same time, new developments in Cyprus and coastal real estate traditionally outperform the market, with potential growth of up to 10-15%. The reasons are familiar: sustained foreign demand, a shortage of high-quality projects, and a stable Cypriot economy with inflation below 2,2%. Overall, the Cyprus real estate market maintains a predictable upward trajectory, which is increasingly rare today.

Residential property in Cyprus is expected to grow by around 5-7% annually. Apartments in Cyprus remain the strongest segment, adding 4-5%, while houses and villas show slightly more moderate growth of 3-4%. At the same time, investing in new developments in Cyprus continues to look particularly attractive. At early project stages, price growth by completion can deliver ROI of 15-25% within 2-3 years. Not aggressive, but very solid. Alongside this, rental prices in Cyprus are also rising, driven by the steady inflow of expats and digital nomads.

From a regional perspective, real estate in Limassol and property in Paphos remain market leaders. In the premium segment, price growth of 7-10% is expected, largely supported by buyers from the UK, Israel, and the UAE. Real estate in Larnaca is gradually gaining momentum, with projected growth of 5-7%, particularly in energy-efficient homes and modern residential projects. Property in Nicosia remains more stable, at 3-5%, with a focus on commercial assets and mid-range residential properties.

Among the key factors influencing Cyprus property prices are tax incentives, the Cyprus permanent residence program from €300,000, large-scale infrastructure projects, and changes to VAT on new developments, valid until June 2026. These conditions are already encouraging buyers to make decisions faster. Added to this are digital transaction processes and stricter green building standards, which further enhance the appeal of primary real estate in Cyprus for international investors.

Overall, the Cyprus real estate market forecast for 2026 looks calm and rational. This is not a market for fast speculation, but it is also not about waiting on the sidelines. It is about well-considered real estate investments in Cyprus, where time tends to work in favor of the owner. And perhaps that is its greatest strength right now.