Cyprus's real estate market continues to grow. But the figures for 2026 reveal a more interesting trend than simply an increase in sales.
The island is effectively developing several different real estate markets. Limassol, Paphos, Larnaca, and Nicosia differ not only in prices, but also in buyer profiles, the role of foreign capital, and the sources of demand.
This is why average figures for Cyprus as a whole are becoming less informative.
13,288 Contracts in Eight Months
According to the Department of Lands and Surveys of the Republic of Cyprus, 13,288 contracts of sale were registered between January and August 2026.
For the same period in 2025, the figure was 11,689.
That means the number of registered contracts increased by approximately 14% year on year.
Importantly, the growth was not driven by a single exceptionally strong month. Each of the first eight months of 2026 recorded more registered contracts than the corresponding month in 2025.
Even in August, traditionally a quieter period for business activity, there were 1,241 registered contracts compared with 1,128 a year earlier.
That represents an increase of around 10%.
Source: Department of Lands and Surveys, Contracts of Sales 2025–2026.
Limassol Remains the Largest Market
Between January and August 2026, 4,354 contracts of sale were registered in Limassol, compared with 3,720 a year earlier.
That represents growth of approximately 17%.
Limassol accounts for roughly one-third of all registered contracts of sale in Cyprus.
In other words, approximately one in every three registered property contracts on the island is recorded in Limassol.
At the same time, August brought an interesting signal: the number of registered contracts fell from 416 to 395, or by around 5% compared with August last year.
One month does not indicate a change in the overall trend. Over the first eight months of the year, Limassol continues to show strong growth.
But for the island's most expensive and capital-intensive market, the future direction of demand remains particularly important.
Paphos Is Becoming an International Market
Paphos is showing an even stronger growth rate.
During the first eight months of 2026, 2,654 contracts were registered, compared with 2,218 during the same period in 2025.
That represents growth of almost 20%.
But the most important difference in Paphos is not the speed of growth — it is the structure of demand.
According to Land Registry data for January–July, approximately 70% of registered contracts in Paphos were associated with foreign buyers.
This fundamentally changes the nature of the local market.
Foreign buyers are no longer simply an additional source of demand. International capital has become one of the key factors shaping the local property market.
In effect, Paphos is becoming an international real estate market physically located on the island of Cyprus.
Larnaca Is Accelerating
Larnaca is still significantly smaller than Limassol in terms of transaction volume, but its rate of change makes it particularly interesting.
In August alone, the number of registered contracts increased by approximately 35% compared with August 2025.
This is an important market signal.
The largest market is not necessarily the fastest-changing one. Sometimes it is more useful to watch a city where the structure of demand is changing rapidly and new capital is entering the market.
For this reason, Larnaca is becoming one of the markets worth watching particularly closely over the coming years.
Nicosia — A Different Model
The capital shows a very different demand structure.
The share of foreign buyers is significantly lower than in the coastal areas.
According to data for January–July, it stood at approximately 16% of registered contracts.
Nicosia is therefore much more dependent on domestic buyers, the performance of the Cypriot economy, household incomes, and mortgage availability.
Comparing Nicosia with Paphos solely on the basis of price per square metre would therefore be misleading.
They are effectively two different markets with different demand dynamics.
Around 42% of the Market Is Linked to Foreign Buyers
This may be one of the most important figures of 2026.
According to the Department of Lands and Surveys, approximately 5,562 registered contracts between January and August were associated with foreign buyers.
That is roughly 42% of all registered contracts in Cyprus.
Within foreign demand, buyers from countries outside the European Union play a particularly significant role.
Between January and July, foreign buyers registered 4,980 contracts:
1,687 — buyers from EU countries;
3,293 — buyers from countries outside the EU.
In other words, approximately two-thirds of foreign demand came from buyers from non-EU countries.
This means that Cyprus's real estate market is becoming increasingly dependent not only on the condition of the island's economy or the European Union, but also on international capital flows.
Important: A Contract of Sale Is Not the Same as a Transfer of Ownership
When analysing Cypriot property statistics, an important methodological distinction needs to be taken into account.
The Department of Lands and Surveys publishes separate data for Contracts of Sale and Transfers of Sale.
These are different indicators.
A Contract of Sale refers to the registration of a sale agreement.
A Transfer of Sale refers to the actual transfer of registered ownership.
Particularly when purchasing property under construction, a considerable period of time can pass between these two events.
Therefore, it would be incorrect to claim that "42% of Cyprus's property is owned by foreigners" based on these figures.
The accurate formulation is:
Around 42% of registered contracts of sale between January and August 2026 were associated with foreign buyers.
Understanding the actual ownership structure requires separate analysis of completed transfers of ownership.
Prices Continue to Rise
The number of contracts is increasing alongside property prices.
The Central Bank of Cyprus reports that the Residential Property Price Index continued to move upward during the first quarter of 2026.
The Central Bank attributes this dynamic primarily to continued strong demand for residential property from foreign buyers and, to a lesser extent, domestic buyers.
Other factors include higher construction costs and a gradual increase in housing supply.
Source: Central Bank of Cyprus, Residential Property Price Index, Q1 2026.
Construction Is Beginning to Respond to Demand
High demand and rising property prices are gradually stimulating new construction.
According to the Statistical Service of Cyprus, 735 building permits were issued in May 2026.
That was 21.1% more than a year earlier.
At the same time, construction itself is becoming more expensive.
In July 2026, the construction materials price index was 3.33% higher than in July of the previous year.
This creates an interesting economic chain:
demand rises → prices rise → construction activity increases → but construction costs also increase.
As a result, even a significant increase in supply does not necessarily mean that the cost of newly built housing will fall quickly.
Four Cities — Four Markets
If we simplify the current structure of the Cypriot property market, it looks something like this.
Limassol — capital.
The island's largest market, accounting for around one-third of all registered contracts and characterised by a high concentration of international demand.
Paphos — foreign buyers.
Around 70% of registered contracts are associated with foreign demand, according to January–July data. International buyers play a major role in determining local market activity.
Larnaca — acceleration.
A smaller market than Limassol, but one showing strong momentum and gradually attracting more attention from international buyers and developers.
Nicosia — domestic demand.
The most locally driven of the major markets, with significantly stronger links to Cypriot household incomes, employment, and mortgage lending.
This is why the expression "the Cyprus real estate market" is becoming increasingly broad.
Different cities are moving at different speeds.
Its Greatest Strength Is Also a Key Risk
The growth of foreign demand supports sales, construction activity, and property values.
At the same time, this factor makes some regions more sensitive to external changes.
The market can be affected by:
- changes in international migration flows;
- geopolitical developments;
- tax policy;
- rules governing property purchases by non-EU citizens;
- interest rates;
- the performance of the European economy;
- international capital flows.
Markets such as Paphos and Limassol may be particularly sensitive to these changes because of the significant role played by foreign buyers.
Nicosia, by contrast, is much more closely tied to the performance of the domestic Cypriot economy.
What Is Actually Happening in the Market?
Four factors are operating simultaneously.
First — foreign capital.
Foreign demand has become a structural part of the market, particularly in the coastal cities.
Second — domestic demand.
Local buyers remain an important component of the market, especially in Nicosia.
Third — the limited speed at which new supply can emerge.
Property cannot be built overnight. Years can pass between obtaining a construction permit and delivering a completed project.
Fourth — rising construction costs.
New supply is entering the market at a higher cost base.
The combination of these factors is currently supporting the market.
What to Watch Next
To understand whether the current growth model will continue, three indicators will be particularly important through the end of 2026.
The share of foreign buyers.
If it continues to increase, international capital will play an even larger role in determining property values in the coastal cities.
The number of building permits and new residential units.
This will indicate how quickly supply can respond to sustained demand.
The gap between cities.
If the buyer profiles in Limassol, Paphos, Larnaca, and Nicosia continue to diverge, nationwide averages will become increasingly less useful for analysing the market.
The Main Takeaway
13,288 registered contracts in eight months is an important number. But it is not the most important one.
The more interesting story is the structure behind the growth:
+14% — increase in registered contracts;
around 42% — share of contracts associated with foreign buyers;
around 70% — share of foreign demand in Paphos according to January–July data;
around 33% — Limassol's share of total registered contracts on the island;
+21.1% — increase in building permits in May.
Cyprus's real estate market is not simply growing.
It is becoming more international and, at the same time, increasingly uneven.
The key question for the coming years is therefore no longer simply whether people will continue buying property in Cyprus.
The more important question is:
Can new housing supply grow at the same pace as demand changes and expands?
The answer will play a major role in shaping the next cycle of Cyprus's real estate market.
Sources
1. Department of Lands and Surveys, Republic of Cyprus
Contracts of Sales 2025 and 2026. Official monthly statistics on registered contracts of sale by district.
2. Department of Lands and Surveys, Republic of Cyprus
Foreign Buyers Sales and Contracts of Sales 2026. Statistics on buyers from EU and non-EU countries, registered contracts, and ownership transfers.
3. Department of Lands and Surveys, Republic of Cyprus
Transfers of Sale 2026. Statistics on completed sales and transfers of ownership.
4. Central Bank of Cyprus
Residential Property Price Index, Q1 2026. Published on 23 June 2026.
5. Statistical Service of Cyprus — CYSTAT
Building Permits, May 2026. Published on 16 September 2026.
6. Statistical Service of Cyprus — CYSTAT
Price Index of Construction Materials, July 2026. Published on 18 August 2026.
Data in this article are current as of 17 September 2026.