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Cyprus Housing Costs Continue To Rise As Rental And Property Prices Extend Their Upward Trend

Cyprus Housing Costs Continue To Rise As Rents And Property Prices Climb

Cyprus entered 2026 with little sign of relief in its housing market, as both rents and house prices continued to increase during the opening months of the year, reinforcing the affordability pressures facing households.

Rental Costs Keep Moving Higher

New Eurostat data show that rental prices continued their steady upward trend in May. The harmonised index of consumer prices for actual rental payments edged up to 103.95 points from 103.91 in April, extending a pattern of monthly increases that has been in place since the beginning of the year.

Although the monthly gains have been modest, they point to persistent upward pressure in a rental market where supply remains tight and affordability continues to deteriorate.

House Prices Extend Their Upward Trend

Property prices also continued to rise, although at a more moderate pace than in several other European Union countries.

House prices in Cyprus increased 1.6% in the first quarter of 2026 compared with the previous three months, following a flat fourth quarter of 2025. On an annual basis, prices were 3.4% higher than a year earlier. While that represented a slowdown from the 6.0% annual increase recorded in late 2025, it nevertheless confirmed that the market continues to trend upward.

The longer-term picture highlights the scale of that appreciation. Using 2015 as the base year, Cyprus’ house price index reached 150.89 in 2025, up from 144.46 in 2024 and 134.60 in 2023. The figures illustrate how residential property values have risen steadily over the past decade despite periods of slower growth.

Cyprus Lags The Fastest-Growing EU Markets

Although prices continue to rise locally, Cyprus remains below the pace seen in many other European markets.

Across the EU, house prices increased 5.1% year on year in the first quarter of 2026, while rents rose 3.0%. Compared with the previous quarter, house prices advanced 1.2% and rents 0.7%. In the euro area, house prices climbed 4.7% from a year earlier and 1.0% from the previous quarter.

Eurostat said house prices rose faster than rents in 19 member states when comparing the first quarter of 2026 with the annual average for 2025. Portugal recorded the strongest increase at 10.3%, followed by Bulgaria at 9.4% and Slovakia at 9.1%, while France and Finland were the only countries to register declines.

Rental markets showed a similar pattern of broad-based growth. Croatia posted the largest increase at 21.9%, ahead of Bulgaria (6.4%) and Greece (5.0%). Only Slovenia and Finland did not record rental growth over the period.

Looking at annual house price growth in the first quarter of 2026, Portugal again led the bloc with a 17.8% increase, followed by Bulgaria (14.8%) and Slovakia (14.4%). Finland was the only EU member state to record an annual decline.

For Cyprus, the figures point to a market that continues to move in one direction. While house price growth has moderated compared with last year, both property values and rental costs remain on an upward trajectory, offering little relief for households facing an increasingly expensive housing market.

Cyprus Property Deals Reach €286 Million Despite Second-Quarter Uncertainty

Cyprus’ high-end property market remained active in the first half of 2026, although geopolitical uncertainty may have weighed on investment activity during the second quarter.

€286.4 Million Across The 50 Largest Deals

Property transactions worth a combined €286.4 million ranked among Cyprus’ 50 highest-value deals completed between January and June, according to real estate analytics firm Ask Wire.

Examining the country’s biggest sales across all districts, the report found that the 10 largest transactions alone accounted for €161.7 million, highlighting the concentration of activity at the upper end of the market.

Limassol Extends Its Lead

A €55 million sale involving a building and adjoining fields in Moni was the largest property transaction recorded during the period.

Six of the country’s 10 biggest deals took place in Limassol, with a combined value of €117.2 million. Paphos followed with three transactions worth €35.5 million, while Larnaca recorded one €9 million sale.

Across the broader ranking, Limassol’s 10 largest transactions reached €148.2 million, representing 51.7% of the total value of the top 50 deals. Paphos followed with €68.8 million (24%), while Nicosia recorded €26.7 million. Famagusta narrowly surpassed Larnaca, reaching €21.4 million compared with €21.2 million.

Land Continues To Drive High-Value Deals

According to Ask Wire CEO Pavlos Loizou, land acquisitions continue to dominate Cyprus’ largest property transactions.

“The land market dominates the list of the 10 highest-value property transactions, with seven sales involving fields and plots.”

Many of those sites are expected to be developed into luxury residential and hospitality projects, he added.

Office Demand Remains Strong

Growing demand for office space also reflects the expansion of international companies establishing operations in Cyprus, Loizou said.

“We continue to observe growing demand for office properties, reflecting the expansion of the new ecosystem of international companies that has been establishing itself in Cyprus in recent years.”

Eight of the 10 largest transactions were completed during the first quarter of 2026, with activity slowing in the following three months.

Loizou said the slowdown may reflect investor caution linked to the conflict in the Middle East, which appears to have influenced investment decisions during the second quarter.

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