Paphos Real Estate Market Report — September 2026

Market report · September 2026Rising

PaphosCyprus

Paphos residential real estate market report for September 2026. Nationally, house prices in Cyprus were climbing, up 3.4% from a year earlier in Q1 2026 (+1.6% quarter on quarter). The pace of annual growth is slowing. The European Central Bank’s policy rate stood at 2.25% in August 2026, up from 2.00% a year earlier.

September 2026 at a Glance

House prices · Cyprus

+3.4% YoY

+1.6% QoQ · Q1 2026

Momentum

Slowing

+3.4% now vs +6.0% a quarter earlier

Policy rate

2.25%

Rising over 12 months · August 2026

New mortgage rate

3.29%

3.35% a year earlier · July 2026

House Prices and Trends

City-level transaction prices for Paphos are not released as open data, so the national index for Cyprus serves as the benchmark here. Read local listings against that backdrop.

The national house price index for Cyprus rose 3.4% year on year in Q1 2026 and was +1.6% against the previous quarter, according to Eurostat, House price index (prc_hpi_q). A year earlier the annual rate was +4.7%, so growth has cooled over twelve months. More recently, though, the annual rate has eased from the previous quarter, which suggests the market is losing some steam even as prices stay well above year-ago levels.

Quarter	Prices YoY	Prices QoQ
Q4 2024	+4.5%	-1.7%
Q1 2025	+4.7%	+4.2%
Q2 2025	+2.9%	-1.8%
Q3 2025	+4.2%	+3.7%
Q4 2025	+6.0%	0.0%
Q1 2026	+3.4%	+1.6%

House price index, % change year on yearQ2 2024+8.4%Q3 2024+7.5%Q4 2024+4.5%Q1 2025+4.7%Q2 2025+2.9%Q3 2025+4.2%Q4 2025+6.0%Q1 2026+3.4%

Financing and Interest Rates

The European Central Bank’s policy rate was 2.25% in August 2026 (BIS, Central bank policy rates). Rates are 0.25 points higher than a year ago, which raises the cost of borrowing and tends to cool price growth with a lag of two to four quarters. The average rate on new mortgages to households in Cyprus was 3.29% in July 2026 (ECB, Bank interest rates — loans to households for house purchase (MIR)), compared with 3.35% a year earlier.

Paphos in the News

Cyprus Rental Yields Rise as Investors Weigh Limassol, Nicosia and Paphos – Realty Plus Magazine (Realty Plus Magazine, 7 Sep 2026)
Paphos records Cyprus’ highest prices for new houses – Cyprus Mail (Cyprus Mail, 31 Jul 2026)
Paphos municipality and Red Cross strengthen support for vulnerable residents | Cyprus inform – Cyprus Inform (Cyprus Inform, 30 Jul 2026)

Reading the Trend

Rising

The trend is up, at a sustainable rather than speculative pace. This is typically the most balanced environment for both buyers and sellers.

What to watch next month

The next quarterly release of the house price index for Cyprus (Q1 2026 is the latest) — whether annual growth keeps slowing.
Upcoming decisions by the European Central Bank — any move from 2.25% feeds through to mortgage pricing within weeks.

What This Means for Buyers, Sellers and Investors

Kupci

The market is moving but not running away; there is time for due diligence, and properties that have sat unsold for months are where discounts appear.

Sellers

Well-presented property at a realistic price attracts multiple viewings; unrealistic asking prices are being ignored.

Investitori

Rising financing costs narrow the gap between yield and mortgage rate; model returns at today's rate plus one point.

Sources

Eurostat, House price index (prc_hpi_q)
BIS, Central bank policy rates
ECB, Bank interest rates — loans to households for house purchase (MIR)
Headlines via Google News RSS; content belongs to the linked publishers.

Properties for sale in Paphos →Browse all properties for sale →

Methodology: all figures are taken directly from the free public statistical sources linked above, for the periods stated; official statistics are published with a lag, so the latest available release is used. Commentary is generated from those figures by rule and reviewed before publication. Nothing here is financial advice.

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