Cyprus residential prices rose 8.5% year on year in Q2 2026, according to the Central Bank’s Residential Property Price Index. Growth was faster in Famagusta, Larnaca and Paphos than in Limassol, even though Limassol still posts the highest absolute price per square metre.
What the Q2 2026 RPPI shows
The Central Bank published the Q2 2026 index on 24 September. The national reading was 109.7, up 8.5% year on year and 2.4% quarter on quarter, an acceleration from Q1’s 7.5% annual rise. Apartments rose 8.9% year on year against 5.8% for houses.
Sale contracts counted by the Central Bank rose 15.4% year on year in Q2 to 5,298. That supports a demand-led move rather than a statistical base effect alone. For ongoing Land Registry volume context, see the monthly sales statistics briefing.
Faster growth where entry prices are lower
Year-on-year district growth in Q2 was strongest in Famagusta (+10.0%), Larnaca (+9.8%) and Paphos (+9.6%). Limassol rose 7.8% and Nicosia 5.7%. Famagusta figures here refer to the government-controlled free areas (Ayia Napa, Paralimni, Deryneia), not areas under Turkish Cypriot administration.
Absolute levels still favour Limassol. Landbank Analytics’ H1 2026 data put Limassol apartments at about €2,686 per m² against Larnaca at about €1,528 per m², a gap of roughly 76%. Paphos sat near €1,819 per m² for apartments, Nicosia about €1,582, and Famagusta about €1,610 for apartments (€1,760 for houses). Limassol’s premium increasingly looks like liquidity and prestige, not the fastest appreciation. District context: Cyprus district guides and the property price index by region.
Demand is up. Supply still has a brake
Headline activity is strong: prices, contracts and earlier permit data all point up. The European Commission has estimated a housing shortfall around 39,000 units. A large share of Cypriot construction firms report labour shortages that limit output, and sector productivity sits well below the EU average. Permit growth therefore does not convert one-for-one into completed homes on a short clock. Much of the recent permit wave is still expected to land into 2027 and 2028.
Separately, a pending non-EU ownership-restriction bill (agricultural-zone land, land near the ceasefire line or critical infrastructure, plus plot and floor-area caps) saw no procedural movement in the week of the brief. Corporate-purchase curbs remain expected to reach a House committee in October. EU nationals and Cyprus or EU-registered companies are still treated differently from individual non-EU buyers under the proposals discussed so far. Treat October as a date to watch if your structure is non-EU, not as a reason to skip ordinary due diligence today.
What UK buyers should do with this
- Separate growth rates from ticket price. A cheaper district can grow faster while Limassol still costs more in euros per square metre.
- Price-check the specific unit against recent comparable sales, not only asking prices or a national headline.
- Stress-test delivery: labour and productivity constraints matter more for off-plan than for scarce completed stock.
- If you are a non-EU buyer, track the ownership bill timeline and take advice on structure before you commit to land-heavy purchases.
How Cyprus Gate fits
Cyprus Gate acts only for the buyer. We hold no developer inventory and take no seller commissions. We help UK buyers read district and transaction data in context, then coordinate with an independent Cyprus lawyer for the formal checks. More on our stance: about independence.
Figures above summarise the Central Bank Q2 2026 RPPI and related market reporting as of late September 2026. This post is general information about the Republic of Cyprus property market, not investment, legal or tax advice. Confirm the position for your purchase with independent professional advisers before you commit.
If you are comparing districts or a shortlist of units and want a buyer-side read before you offer, contact Cyprus Gate.
