The real estate market of Cyprus continues to demonstrate stability and gradual price growth. According to the latest RICS Cyprus Property Index prepared jointly with KPMG for the fourth quarter of 2025, most property segments on the island show moderate price fluctuations, but overall the trend remains positive.
Experts note that the office sector performed best at the end of 2025. Apartments ranked second in terms of value growth and have remained one of the most stable and in-demand property types in Cyprus for many years. At the same time, the retail property sector once again proved to be the weakest and showed minimal price changes.
Residential property remains the most in-demand asset
If we compare the indicators for the year, it becomes clear that the residential sector continues to dominate the Cyprus real estate market. Apartments are still considered the most attractive investment option among both local buyers and foreign investors.
Over the year, apartment prices increased by 5.03%, while house prices rose by 4.63%. Warehouses and offices showed slightly more moderate growth. The value of warehouse property increased by 4.11%, while office premises rose by 4.22%.
Retail space once again showed the weakest performance. Over the year, prices in this segment increased by only 0.62%, confirming the lower interest from investors in retail spaces compared with residential and office properties.
Experts note that this trend in Cyprus has persisted for several years. Apartments remain the most stable type of property because they are in demand both for permanent residence and for rental.
Paphos and Larnaca show the fastest growth
Analysis by regions of Cyprus shows noticeable differences between cities. The highest price growth in the fourth quarter of 2025 was recorded in Paphos in the office property sector. Warehouse premises in Larnaca ranked second in growth dynamics, followed by office properties in the same city. The weakest quarterly performance was recorded for warehouses in Paphos, where a slight price correction was observed.
In the residential property sector, the most noticeable price growth for apartments was recorded in Paphos, while houses showed the strongest growth in Limassol. These cities remain key centers of demand from foreign buyers and investors. In the retail property segment, the situation remains relatively stable across all regions of the island. The most noticeable, although still small, price growth for retail spaces was recorded in Limassol.
Tourist property remains one of the most profitable
Holiday property also maintains strong positions in the Cyprus market. Properties intended for short-term tourist accommodation show stable price growth amid the active development of the island’s tourism industry.
Holiday apartments increased in price by 4.31% over the year. Holiday houses also showed positive dynamics, with their value rising by 2.45%. Experts link this to the continued growth of tourism in Cyprus. In recent years, the island has regularly welcomed millions of tourists, and short-term rental is becoming an increasingly popular investment strategy.
Rental prices in Cyprus continue to rise
In addition to property prices increasing, rental rates in Cyprus are also continuing to rise. The most noticeable growth was recorded in the apartment segment. Apartment rental prices increased by 5.79%. Rentals for tourist apartments increased by 3.39%, while office rentals rose by 3.13%. Warehouse rental costs increased by 2.48%.
Residential house rentals increased by 2.34%, while holiday house rentals rose by 2.24%. The retail property sector once again showed the smallest change, where rental growth amounted to only 0.43%. This dynamic is explained by the high demand for housing from both local residents and foreign professionals and companies that are actively opening offices in Cyprus.
Property yields remain stable
Returns on real estate investments in Cyprus slightly decreased across most property categories, however apartments became an exception and even showed a small increase. Apartment yields reached 5.45%, increasing by 0.04%. Tourist apartment yields amounted to 5.66%, decreasing by 0.05%.
Office property showed a yield of 5.58% with a decrease of 0.06%. Residential house yields amounted to 2.96% with a decrease of 0.07%. Holiday house yields remained at 2.79% without change. Retail property showed a yield of 5.78% with a slight decrease of 0.01%, while warehouse property yielded 4.19% with a decrease of 0.07%. Overall, yields across most segments changed very little compared with the same period a year earlier.
Experts: the Cyprus real estate market remains resilient
KPMG representatives note that in the fourth quarter of 2025 the Cyprus real estate market demonstrated mostly positive dynamics across all regions and property types. Particularly strong performance was shown by Paphos in the office sector, while Larnaca demonstrated confident growth in warehouse property.
A moderate increase in rental rates was also recorded, with the largest annual growth once again observed in the apartment segment. RICS economists believe that the resilience of the real estate market is directly linked to the overall condition of the country’s economy. In addition, the high flow of tourists to the island has a significant impact. That is why tourist apartments and houses continue to demonstrate stable price growth.
Strong demand is also observed for high-quality office premises, as more and more international companies are opening their representative offices in Cyprus. As a result, experts expect that in the coming years the residential sector, tourist property, and modern offices will remain the main drivers of the Cyprus real estate market.