Cyprus real estate market trends

The real estate markets in Cyprus and Northern Cyprus are experiencing growth driven by international interest. In the Republic of Cyprus, housing prices rose 8.5% annually as of the second quarter of 2026, with the highest increases recorded in Famagusta and Larnaca. Foreign nationals represent a significant portion of market activity, accounting for 66% of purchases in Paphos and nearly 50% in Larnaca.

In Northern Cyprus, the market is seeing a digital transformation to accommodate diversifying global investors. This trend coincides with rising tourism, as passenger arrivals increased by 4.4% in the second quarter of 2026 compared to the previous year, with total arrivals via air and sea reaching 647,224 between April and June.

By late September 2026, geopolitical tensions involving the US, Israel, and Iran have shifted investor risk perceptions in the Gulf region, leading to increased real estate interest in Northern Cyprus. Ozan Dökmecioğlu, Chairman of DND Cyprus, noted that investor interest from the Gulf has risen over the last six months. He highlighted that Turkish investors, who previously held assets in regions such as Dubai, are increasingly turning to Northern Cyprus to avoid regional instability.

Key drivers for this shift include foreign currency-based rental income, relatively low property prices compared to other Mediterranean destinations, and an 8-to-10-year amortization period. To meet this demand, companies like DND Cyprus have invested approximately $50 million in the region, with a portfolio value estimated at £120 million, focusing on projects such as La Joya and Lagoon Verde. Industry experts emphasize that digital visibility and multilingual communication are becoming essential for brands to capture this diversifying market.