Cyprus Real Estate Market Outlook for 2026
Cyprus’s economic fundamentals provide a solid backdrop for the property market. GDP is forecast to grow around 2.5% in 2026, a slight moderation after the strong post-pandemic rebound but still robust by EU standards. This growth is powered by tourism, foreign investment, and construction activity, all of which directly feed into real estate demand. In 2024, tourist arrivals hit record highs (+4 million visitors) and generated €3.2 billion in revenue. This booming tourism not only boosts vacation-home purchases but also sustains construction jobs and buyer confidence. Unemployment is at record lows (~4.5%), and many foreign companies and professionals have relocated to Cyprus in recent years, bolstering housing demand (and rentals) in the process. The government’s regulatory incentives have drawn international firms to the island, including JetBrains, Revolut and many more. This trend has slightly slowed down now, however it has already expanded the pool of expat renters and buyers.
Property prices and demand are expected to remain on an upward trajectory, though gentler than the double-digit annual rises seen a couple of years ago. Analysts note that the market is stabilizing: a wave of new housing supply (helped by active construction and slightly lower building material costs) is beginning to meet buyer demand, which should moderate price growth going forward. The Central Bank of Cyprus anticipates only modest increases in its property price index in the near term as this balance improves. High mortgage rates across Europe have cooled some buyer enthusiasm compared to the frenzied post-pandemic period, but they have not reversed the trend – instead, demand has become a bit more selective. Many buyers are adopting a wait-and-see approach in hopes that borrowing costs will ease. In fact, local real estate experts remain optimistic that if the European Central Bank moves to cut interest rates (expected as inflation comes under control), it could re-energize buyer activity in 2026.
Another defining feature of Cyprus’ 2026 market is its regional diversity. New data shows that Cyprus is essentially “five mini-markets” now, each district with its own momentum. Limassol’s luxury high-rise market, for instance, behaves very differently from Famagusta’s more modest, tourism-driven market. This diversity means investors and homebuyers can find opportunities across all price points, from affordable city apartments to multi-million euro beachfront villas, depending on the region. Below, we will explore the Famagusta region and its specific trends heading into 2026.
Famagusta, the Rising Star on the Eastern Coast
Often less talked about than the big four districts, Famagusta (also called Ammochostos or the “Free Famagusta” area under Cyprus’s government control) is poised to be a surprise bright spot in 2026. This eastern region, encompassing the famed resort towns of Ayia Napa, Protaras, and Paralimni, has long been synonymous with summer tourism – golden beaches and vibrant nightlife. Now, Famagusta is transforming into a more diversified, year-round market, and investors are taking notice. We’re set to highlight Famagusta in an especially favourable light, because the ingredients for growth are all coming together here.
Recent statistics show that while Famagusta has a smaller property market by volume, it’s been punching above its weight in price growth. In 2024, only about 850 residential transactions took place in Famagusta (considerably fewer than other districts). Yet in that same year, Famagusta notched some of the highest price increases in Cyprus. The average new house price in Famagusta leapt by 15% year-on-year, and new apartment prices were up around 5.2%. This indicates a surge in demand focused on the limited supply available. Essentially, more buyers are discovering the area’s appeal, and competition for quality properties is driving values up. Even with those gains, Famagusta’s real estate remains relatively affordable compared to Limassol or Paphos: resale apartments recently averaged just €116,000 (the lowest in Cyprus) and houses about €264,000. This affordability, combined with the region’s natural allure, creates a very attractive proposition for 2026.
One cannot talk about Famagusta without mentioning the tourism evolution happening there. Ayia Napa – once known purely as a party capital – is repositioning itself as a family-friendly luxury destination. A surge of luxury developments is transforming the coastline. A prime example is the Ayia Napa Marina, a €300 million project launched in 2022, which has effectively created a new neighbourhood and driven price growth across the surrounding area. Complete with a landmark residential tower visible from across half the island, a mega-yacht marina, and a curated selection of restaurants and retail outlets, Ayia Napa Marina has firmly placed Famagusta on the map for wealthy buyers and high-net-worth individuals. Further up the coast, Protaras and the town of Paralimni are being energized by the upcoming Paralimni Marina – a €110 million integrated marina and resort development set to fully open in early 2026. This project features a 300-berth marina, chic waterfront apartments, villas and a promenade of boutiques and dining. Importantly, it’s designed to be a year-round attraction, complete with off-season cultural events and an official port of entry for yachts. In essence, Famagusta is investing heavily to ensure that its resort areas aren’t just buzzing in July and August, but also draw visitors and residents throughout the year.
The impact of these projects is already palpable. They are driving significant infrastructure upgrades in the surrounding areas – improved roads, utilities, public parks – which make everyday life more convenient and further boost property values nearby. Demand for property around the marinas has skyrocketed: buyers from Europe and the Middle East are keen to snap up luxury waterfront apartments and villas, anticipating not only a unique lifestyle but also healthy capital appreciation. Local realtors report that prices for seafront homes in Protaras/Ayia Napa have seen a marked uptick, and new-build units near the marina developments often sell out quickly. In parallel, commercial real estate is also benefiting – new retail and hospitality spaces around these marinas are luring businesses, creating jobs and adding to Famagusta’s economic vibrancy.
Another interesting trend is Famagusta’s land market. Data from 2025 shows that in Famagusta, real estate activity is dominated by land (field) sales rather than built property sales. In the first half of 2025, there were 53 field sales (averaging €241k each) but only 12 building plot sales. is is a unique pattern not seen in other districts and suggests that developers and investors are actively buying up land for future projects – whether agricultural, tourism or residential. It underlines a confidence that the region will grow. In fact, Famagusta is described as “a category of its own,” with a land-driven market where people are effectively banking on the area’s future. For the local economy, this is encouraging: it means more construction and development is likely on the horizon, bringing improvements and opportunities.
In 2026, expect Famagusta’s star to continue rising. The combination of idyllic natural assets (from the famous Nissi Beach – rated Europe’s top beach in 2024 – to the crystal waters of Protaras with new luxury infrastructure is turning the region into a prime spot for both lifestyle buyers and investors. Vacation-home seekers will find everything from modern seafront condos to traditional holiday villas. And with these areas diversifying, even long-term rentals could see an uptick (for instance, professionals in the growing local tourism industry or retirees looking to rent before they buy).
For now, the narrative is clear: Famagusta is no longer the overlooked part of Cyprus, but a region of opportunity, innovation, and sunny optimism for 2026 and beyond.
