Paphos Property Market 2026: Foreign Buyers Drive Demand as Cyprus Residential Prices Rise 8.5%
Cyprus' residential property market continued its upward trajectory during the second quarter of 2026, with Paphos remaining particularly attractive to international purchasers.
According to the latest Residential Property Price Index published by the Central Bank of Cyprus, residential property prices across Cyprus increased by 8.5% year on year in Q2 2026.
Paphos records 9.6% annual price growth
Paphos recorded an annual increase of 9.6% in its general residential property price index. The figures demonstrate continued market activity in one of Cyprus' most internationally oriented property markets.
Apartments continue to show strong growth
Across Cyprus, apartment prices increased by 8.9% year on year, while house prices increased by 5.8%. Headline price movements are only one part of the picture. Location, title status, planning matters, contractual protection, VAT treatment and the legal status of the purchaser can all materially affect an individual transaction.
Foreign demand remains an important part of the market
Foreign demand continues to be an important feature of the Cyprus residential property market. In Paphos, approximately two in three property buyers during Q2 2026 were foreign purchasers.
What should an overseas purchaser consider?
Strong demand does not remove the need for careful legal due diligence. Before committing to a property purchase in Cyprus, an overseas purchaser should ordinarily consider title and Land Registry searches, planning and building permissions, mortgages or other encumbrances, contractual protections, VAT and transfer costs, the deposit and payment structure and, where applicable, the statutory requirements relating to the acquisition of immovable property by non-EU nationals.
Where a property is under construction or purchased off plan, additional contractual protection may also be required in relation to specifications, completion, delivery, payments and the eventual issuance or transfer of separate title.
Independent legal guidance
At Cyprus Law Chambers, Nicos Papacleovoulou LLC, we advise Cyprus and international clients on residential property transactions in Paphos and throughout Cyprus, from initial legal due diligence and contract negotiations through to deposit of the contract and completion.
Considering buying property in Cyprus? Independent legal advice should ideally be obtained before signing a reservation agreement or paying a substantial deposit.
Source: Central Bank of Cyprus, Residential Property Price Index, Q2 2026, published 24 September 2026.
