TL;DR: In 2025, Cyprus property prices rose by an average of 5–8%, with apartments in Paphos and Limassol leading the growth at 8.8%. Rental yields remained strong at 6–8%, making the island a top Mediterranean investment hub for 2026.
How Did the Cyprus Real Estate Market Perform in 2025?
The 2025 market was defined by “Resilient Growth.” Despite higher interest rates, transaction volumes remained high due to a 15% surge in foreign investment during Q1 and Q2. The Cyprus Homes Network observed a significant shift toward energy-efficient “Green Buildings” (Grade A+), which now command a premium price in the resale market.
Key Statistics: 2025 Property Trends
To help you understand the landscape, here is the breakdown of the 2025 performance by district:
| District | Price Growth (2025) | Avg. Apartment Price | 2026 Sentiment |
| Limassol | +6-8% | €450,000+ | Stable / High-End |
| Paphos | +12.1% | €280,000+ | High Growth |
| Larnaca | +4.2% | €220,000+ | Emerging Hotspot |
| Nicosia | +11% (Houses) | €200,000+ | Local Demand |
Why Paphos and Limassol Led the Market
- Apartment Demand: Apartments outperformed houses in every quarter of 2025. In Paphos, new-build apartment sales volume increased by 68%.
- Permanent Residency: The €300,000 investment threshold continued to drive sales from non-EU investors seeking European security.
- Rental Yields: Investors achieved gross yields of 6.5% to 8.5% in Kato Paphos, specifically for short-term holiday lets.
2026 Forecast: Is Now a Good Time to Buy?
As we enter 2026, the Cyprus Homes Network forecasts a price stabilization of 3–7%. While the rapid “post-pandemic” spikes have leveled off, the market has matured. We expect Larnaca to be the “rising star” of 2026 due to the ongoing Marina redevelopment projects.
FAQ: Cyprus Real Estate 2025-2026
What was the average property price increase in Cyprus in 2025?
Residential prices increased by roughly 5% to 8% annually, with apartments showing the strongest appreciation at nearly 9% in prime areas.
Which city in Cyprus has the highest rental yield?
Limassol and Paphos remain the leaders, with Limassol averaging 6% and Paphos holiday areas reaching up to 8.5%.
Will property prices in Cyprus fall in 2026?
No, experts predict a steady growth of 3–7% for 2026, driven by high construction costs and sustained international demand.