The Current Economic Picture

22 Aug 2023

The Cyprus Real Estate Market in 2026: Where It Stands and What Comes Next

Record sales, strong foreign demand, higher borrowing costs and a clear shift towards greener homes. The Cyprus real estate market in 2026 has plenty of moving parts, and anyone planning to buy, sell or invest needs a clear picture before making a move.

Here's an overview of the trends shaping the market this year, based on the latest official figures available in September 2026.

Sales at Record Levels

The numbers speak for themselves. Between January and August 2026, 13,288 contracts of sale were lodged with the Land Registry, 13.7% more than in the same period of 2025 and the highest eight-month total on record. Every single month of the year so far has outperformed the same month of the previous year.

Growth hasn't been equal everywhere, though. Paphos and Limassol are leading the way, while Nicosia has grown at a steadier, more moderate pace. Larnaca also had a standout August, with sales up by more than a third compared with last year. For buyers, this means location matters more than ever: different districts are moving at different speeds.

International Buyers Remain a Driving Force

Cyprus continues to attract buyers from abroad. Around 47% of all sale contracts in the first eight months of 2026 involved buyers from other EU countries or from outside the EU. Its EU membership, sunny climate, English-speaking business environment and quality of life keep the island on the radar of international buyers and people relocating for work.

Local demand remains strong as well. Cypriot buyers still account for more than half of all transactions, which gives the market a solid domestic base.

Borrowing Has Become More Expensive

The biggest challenge this year is the cost of financing. Following the energy shock linked to the conflict in the Middle East, the European Central Bank raised interest rates in June and again in September 2026. Its deposit rate now stands at 2.50%.

For buyers who rely on a mortgage, this means higher monthly repayments, and banks may be more demanding when assessing applications. If you're planning a purchase with a loan, it's wise to speak to your bank early, compare offers and allow some room in your budget in case rates rise further.

Construction Costs and New Developments

Higher energy prices also affect the construction sector, as materials, transport and labour all become more expensive. These costs tend to find their way into the prices of new developments. Buyers comparing new builds with resale properties should look carefully at what each option offers for the money.

On the positive side, buying costs have eased in one area: stamp duty no longer applies to sale contracts signed from 1 January 2026.

Energy Efficiency Is Now a Priority

Buyers are paying much more attention to how a home performs. Good insulation, solar panels, heat pumps and a high energy class mean lower electricity bills and a more comfortable home all year round. New buildings in Cyprus must already meet nearly zero-energy standards, and energy-efficient properties are increasingly attractive to both buyers and tenants.

Older properties are not out of the picture. With the right upgrades, such as new windows, insulation or photovoltaics, many can become more efficient and more valuable. Government grant schemes for energy upgrades are also available from time to time, so it's worth checking what applies before you renovate.

What This Means for You

The market is active, but it's not one-size-fits-all. A few practical points for 2026:

Buyers: Focus on location, energy performance and clean title deeds, and secure your financing early.
Sellers: Demand is strong, but realistic pricing still matters. A professional valuation helps you set the right asking price.
Investors: Look beyond headline growth. Rental demand, running costs and financing terms all affect your real return.

Get Expert Guidance

Market conditions can change quickly, and every property decision is different. The G&P Lazarou team follows the market closely across Cyprus and can help you make sense of what the figures mean for your plans. Contact us on +357 22024949 or at sales@gplazarou.com for a personal consultation.

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