In 2026, Cyprus’ real estate market continues to grow, with foreign buyers playing a key role. Recent data shows that in certain regions, international demand is shaping transaction volumes and influencing price dynamics.

📊 The most illustrative example is Paphos. According to the latest available data for late 2025, foreign buyers account for approximately 68% of all property transactions in the region. This indicates that the local market is largely driven by international capital rather than domestic demand.

Data from early 2026 confirms continued growth. In the first months of the year:

— in February 2026, total transactions increased by around 12% year-on-year;
— approximately 1,537 transactions were recorded compared to 1,371 a year earlier;
— in January–February 2026, the market grew by about 11% nationwide;
— transactions increased by around 24% in Limassol and 14% in Paphos.

📈 At the same time, the financial base of demand is strengthening. In 2025, the volume of new mortgages increased by approximately 23.1%, indicating that market growth is supported not only by cash buyers but also by bank financing. At the beginning of 2026, mortgage rates for non-residents remain at around 3.5–4.5%, supporting accessibility of financing.

The Cypriot market remains segmented, and the impact of foreign demand varies by region:

— Paphos: dominance of foreign buyers;
— Limassol: demand driven by business activity and relocation;
— Larnaca: growing interest linked to infrastructure development;
— Nicosia: predominantly a domestic market.

🏗 Limited supply of new housing continues to put pressure on prices, particularly in coastal regions. Across the market:

— property prices are increasing by approximately 5–7% annually;
— since 2020, prices have risen by about 27%;
— the average price has reached around €2,600 per square meter.

An additional factor in 2026 is geopolitics. Cyprus is strengthening its position as a safe jurisdiction within the EU. In certain segments, demand from Middle Eastern investors has increased significantly, further supporting the housing market.

⚖️ As a result, the market is evolving into a model where:

— up to two-thirds of transactions in some regions are driven by foreign buyers;
— transaction volumes continue to grow in 2026;
— mortgage financing and international demand reinforce each other;
— prices are increasingly shaped by external capital.

📊 In this environment, the key factor is the selection of a specific location. Regions with a high share of foreign buyers demonstrate stronger price growth and higher liquidity compared to the domestic market.

🏡 This is why, when working with the Cyprus market, it is important to focus on properties in locations where demand is already driven by international buyers. You can explore available properties for investment or living on our website.