The Cyprus property market continues to demonstrate resilience: in the second quarter of 2026, prices increased across most major property categories, while overall positive momentum was recorded in all districts of the island. According to the RICS Cyprus Property Price Index with KPMG in Cyprus, apartments remain the most dynamic segment of the market. Larnaca delivered particularly strong results, becoming the leading district for growth in several categories.
On an annual basis, apartment prices increased by more than 5%. Warehouses followed with growth of 4.22%, while house prices rose by 4.04%. Commercial property showed significantly weaker momentum, increasing by just 0.66%. Apartments recorded the strongest performance in Larnaca in the second quarter of 2026. Positive trends were also recorded in the other districts, while the apartment market in Nicosia largely stabilised.
Larnaca leads, while retail remains the weakest segment
The residential property market continued to grow overall. Larnaca and Paphos led in terms of house price growth. Moderate growth was recorded in Limassol, only a slight increase in the government-controlled areas of Famagusta, while house prices in Nicosia remained unchanged.
Office property also recorded its most noticeable growth in Larnaca. More moderate price increases were registered in Limassol and Paphos, while office price growth in Nicosia was minimal. No changes were recorded in the government-controlled areas of Famagusta. Warehouse property continued to grow steadily, particularly in Larnaca, followed by Paphos.
At the other end of the ranking were retail properties. This segment showed the weakest performance among the main commercial property categories: moderate growth was recorded in Paphos, while a slight decline was seen in the government-controlled areas of Famagusta. According to KPMG and RICS, the market overall remains stable and healthy. Demand continues to be supported by residential and holiday properties, while the commercial sector is developing more selectively.
Holiday property prices continue to rise
Positive momentum also continues in Cyprus’s holiday property market. In the second quarter of 2026, prices increased for both holiday apartments and houses, indicating continued demand. Over the year, holiday apartment prices rose by 5.18%, while holiday houses increased by 3.01%. This means that holiday apartments continue to outperform houses in terms of price growth.
The most notable quarterly price increase in the second quarter was recorded in Larnaca: holiday apartment prices rose by 3.85%, while holiday houses increased by 3.10%. The smallest increase in holiday apartment prices was recorded in the government-controlled areas of Famagusta, at 0.63%. For holiday houses, the lowest growth was recorded in Limassol, at 0.36%.
The latest RICS/KPMG report also notes that concerns about the potential negative impact of the geopolitical situation on the tourism sector have so far not been significantly reflected in holiday property prices. Tourism-related properties continue to record growth.
Rents are rising faster than prices for some property types
Rental prices in Cyprus also continued to rise in the second quarter of 2026. The strongest annual increase was recorded for apartments, at 7.36%. Holiday apartments followed with rental growth of 6.43%, houses 5.30%, holiday houses 5.19%, offices 4%, warehouses 1.96%, and commercial property 1.22%.
When comparing annual rental yields across different property categories, holiday apartments ranked first at 5.82%. They were followed by commercial property at 5.78%, offices at 5.63%, standard apartments at 5.51%, warehouses at 4.15%, houses at 3.01%, and holiday houses at 2.85%.
Overall, the second quarter of 2026 confirmed continued demand for residential and holiday property in Cyprus. Apartments remain the strongest segment, while Larnaca is increasingly emerging as one of the leading districts in terms of price growth. The commercial property market is developing much more cautiously, especially in the retail segment.
The RICS Cyprus Property Price Index with KPMG in Cyprus is published quarterly and tracks sale and rental prices for the main property types across all districts of Cyprus. The latest report for the second quarter of 2026 was published on 25 August 2026.