Nicosia, Cyprus. Europe’s property markets are entering the second half of 2026 with investors placing greater emphasis on market fundamentals rather than simple comparisons of whether assets appear cheap or expensive.
Recent data from Cyprus, Greece and wider Europe show continued activity and price growth, but also point to a more selective and uneven investment recovery.
Cyprus sales increase
In Cyprus, property sales rose 11.9 per cent in the first five months of 2026. A total of 8,043 sales documents were filed between January and May, compared with 7,185 in the same period a year earlier.
Limassol remained the largest district by volume, recording 2,537 sales contracts, up 11.2 per cent year on year.
Greek apartment prices continue to rise
In Greece, the latest bank figures published on June 9 showed apartment prices still increasing, although at a slower pace.
Prices rose 5.7 per cent year on year in the first quarter of 2026. Athens recorded a 5.2 per cent increase, Thessaloniki 6.4 per cent, other cities 5.4 per cent and other areas of Greece 6.9 per cent.
European investment recovery remains selective
Across Europe, investment activity is recovering, but not uniformly. CBRE said European real estate investment reached €52.6 billion in the first quarter of 2026, up 3 per cent year on year, while volumes on a trailing 12-month basis were 13 per cent higher.
JLL said in its May outlook that global direct real estate transaction volumes reached $216 billion in the first quarter of 2026, an increase of 18 per cent year on year. In EMEA, however, transactions were down 2 per cent, indicating that Europe’s recovery remains more uneven than the global headline figure suggests.
Focus shifts to market support for pricing
The changing investment environment means investors are no longer buying property markets simply because they appear cheaper than western Europe.
Instead, they are assessing whether rents, incomes, occupier demand, liquidity, financing costs and new supply can support further pricing levels.
CEE markets assessed beyond low-cost appeal
This shift is particularly relevant for Central and Eastern Europe, where the most active real estate markets are no longer viewed only as low-cost entry points.
For years, the region attracted investors on the basis of low entry costs, catch-up growth and a clear discount to western Europe. Now, cities attracting significant capital, including Warsaw, Prague, Bucharest, Tallinn and Riga, are increasingly being judged on productivity, income growth, infrastructure, liquidity and the depth of occupier markets rather than price alone.
Economic base underpins investor interest
The shift is reflected in macroeconomic and property data. Based on Oxford Economics and national statistics agencies, the data show that several Central and Eastern European capitals and urban regions have combined strong real GDP per capita growth over the past two decades with rising nominal income levels.
Warsaw, Prague, Bucharest and Tallinn are therefore no longer considered cheap markets in the previous sense, but cities where investors are paying for a stronger economic base and a clearer path to rental growth.
