Cyprus Real Estate Market 2026: Official Growth & Price Trends

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Spitimou Editorial Team SpitiMou

Cyprus Real Estate Market 2026: Official Growth & Price Trends

Discover the latest Q2 & Q3 2026 official property market data from the Central Bank of Cyprus. Real estate prices rose 8.5% YoY, driven by strong foreign buyer demand and dynamic growth in Limassol, Paphos, and Larnaca. Read our complete SEO tax and investment guide on WWW.SPITIMOU.CY.

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Official Source & Publication Details

  • Primary Sources: Central Bank of Cyprus (CBC) & Department of Lands and Surveys (Land Registry)

  • Official Report: Residential Property Price Index (RPPI) & Sales Contract Statistics

  • Publication Date: September 25, 2026

Official Quote from Government & Financial Authorities

"During the second quarter of 2026, the Residential Property Price Index registered an 8.5% year-on-year increase, supported by sustained foreign direct investment, expanding mortgage lending, and robust demand for residential apartments across major urban hubs. " — Central Bank of Cyprus (RPPI Official Release)

Key Market Takeaways for Investors & Homebuyers

  1. Robust Annual Price Appreciation:

    According to the Central Bank of Cyprus, property prices rose by 8.5% year-on-year and 2.4% quarter-on-quarter. Apartments continue to lead growth with an 8.9% annual surge, while house prices grew by 5.8%.

  2. Foreign Demand & International Capital:

    International buyers continue to fuel market momentum, particularly in coastal regions. In Paphos, non-Cypriots represented 66% of all buyers in Q2 2026. Overall, transactions involving non-EU and EU buyers accounted for nearly half of total sales across the island.

  3. Regional Sales Leaders:

    • Limassol: Remains the largest and most capital-intensive market with 1,765 sales contracts.

    • Larnaca: Showed the strongest acceleration, recording 1,169 sales and significant price growth in apartments.

    • Paphos: Recorded impressive apartment price growth of 18.5% YoY.

    • Nicosia & Famagusta: Maintained steady demand driven primarily by domestic buyers.

  4. Favorable Financing & Economic Indicators:

    New housing loans grew 14.2% year-on-year (€403.6 million), while average mortgage interest rates remained competitive at 3.23%.

Comprehensive Cyprus Property Tax Overview (SPITIMOU.CY Guide)

When purchasing property in Cyprus, understanding the tax framework set by the Cyprus Tax Department ensures a smooth transaction:

1. Value Added Tax (VAT) on Purchases

  • Standard Rate (19%): Applies to new residential construction and land purchases.

  • Reduced Rate (5%): Applies to qualifying buyers purchasing a primary, permanent residence in Cyprus (covering the first 130 sq. m up to a property value of €350,000).

  • Resale Properties: Exempt from VAT completely.

2. Property Transfer Fees (Land Registry)

  • Progressive Scale (Mainly for Resales without VAT):

    • Up to €85,000: 3%

    • €85,001 – €170,000: 5%

    • Over €170,000: 8%

  • Discounts & Exemptions:

    • 50% Discount: Applied automatically on properties exempt from VAT.

    • 100% Waiver: Transfer fees are fully waived if VAT was paid on the purchase.

3. Capital Gains Tax (CGT) on Property Sales

  • Flat Rate: Sellers pay a 20% CGT on net capital gains.

  • Lifetime Allowances: Taxable profit can be reduced by lifetime exemptions (up to €150,000 for a primary residence held for at least 5 years, or €30,000 general allowance).

  • Refugee Fund Levy: A separate 0.4% levy applies to the gross sale price.

4. Stamp Duty & Annual Taxes

  • Stamp Duty: Abolished for real estate contracts.

  • Annual Immovable Property Tax: Completely abolished at the national level (only small annual municipal fees apply).

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