Cyprus’ real estate market is expected to continue rising in 2026, supported by the consistent quarterly price increases recorded in the 2025 RPPI. The latest Q1–Q3 data shows strong apartment-led growth, stable demand from domestic and foreign buyers and a market entering 2026 with solid momentum.
According to the Central Bank of Cyprus (RPPI), residential prices rose in every quarter of 2025, with apartments consistently outperforming houses and driving the majority of market gains.
Q1 2025 RPPI Dynamics (Residential Property Price Index)
Residential prices increased by 1.9 per cent quarter-on-quarter, supported by a 1.4 per cent rise in apartments and a 1.8 per cent rise in houses, contributing to an annual increase of roughly 4.8 per cent. These patterns signalled early strength in smaller residential units, laying the foundation for continued expansion across the year.
Q2 2025 RPPI Dynamics
Pricing momentum continued with a 1.5 per cent quarterly rise, largely driven by apartments, which climbed by 3.1 per cent. House prices softened slightly by 0.1 per cent, widening the performance gap and maintaining annual growth at about 4.7 per cent while transaction levels rose across buyer groups.
Q3 2025 RPPI & Buyer Composition
Annual price growth accelerated to 5.0 per cent, with apartments rising by 6.4 per cent and houses by 2.6 per cent. A total of 4,444 sales were recorded, with nearly 40 per cent involving foreign buyers, underscoring Cyprus’ increasing international appeal as the market approaches 2026.
Overall, the 2025 data illustrates a residential market driven by structural demand rather than temporary shifts, with apartments achieving stronger appreciation, liquidity deepening through rising transaction volumes and both domestic and foreign buyers contributing to stable absorption. These conditions suggest continued momentum as investors assess Cyprus for upcoming opportunities.
Luma Developers operates within these dynamics, focusing on locations where pricing consistency and sustained demand support long-term value and align with investor interest in best investment areas in Cyprus.
FAQ
How did foreign buyers influence the real estate market in Cyprus in 2025?
Foreign buyers accounted for 1,827 of 4,444 Q3 transactions-nearly 40 per cent of the market-according to the Central Bank of Cyprus RPPI report.
What factors drove residential property price increases in Cyprus during 2025?
The RPPI rose by 1.9 per cent in Q1, 1.5 per cent in Q2 and 1.2 per cent in Q3, with apartments leading growth throughout the year.
Did houses and apartments perform differently in the Cyprus market in 2025?
Apartments recorded 6.4 per cent annual growth by Q3 compared with 2.6 per cent for houses, based on official RPPI data.
Why are the 2025 market trends important for forecasting Cyprus real estate performance in 2026?
Steady quarterly RPPI gains and more than 10,500 transactions by July 2025 indicate strong liquidity that is likely to support momentum into 2026.
