In the first quarter of 2026, the Cyprus property market maintained positive momentum. According to the RICS Cyprus Property Index in association with KPMG Cyprus, changes in the value of most property types remained moderate.
Apartments remained the most resilient segment. Their value increased by 4.09% year on year, the highest result among the main property categories. They were followed by:
- residential houses — +3.6%;
- warehouses — +3.48%;
- offices — +2.91%;
- retail properties — just +0.72%.
The residential sector therefore continues to support the Cyprus property market. Apartments remain the most sought-after asset, followed by houses and warehouses. Retail properties continue to be the weakest segment. According to RICS, slight price increases were recorded in almost all property categories in the first quarter of 2026. Apartments slightly outperformed houses, confirming steady demand for residential property.
How prices changed across different areas of Cyprus
Property market trends varied noticeably by region. In the first quarter of 2026, the most significant changes in apartment prices were recorded in Paphos and the Famagusta district.
- Paphos — +1.67% quarter on quarter;
- free areas of Famagusta — +1.24%;
- Limassol — +0.62%;
- Nicosia — +0.59%;
- Larnaca — 0%.
Interestingly, RICS describes apartments as the most stable part of the market, particularly highlighting the results in Paphos and the free areas of Famagusta. In the residential house segment, the free areas of Famagusta led with growth of 1.37%. They were followed by:
- Limassol — +0.82%;
- Paphos — +0.33%;
- Larnaca — 0%;
- Nicosia — 0%.
The rise in house prices during the first quarter was therefore selective. The strongest growth was recorded in the free areas of Famagusta and Limassol, while prices remained unchanged in Larnaca and Nicosia.
Commercial property showed much calmer dynamics. Retail property prices were generally stable: small increases were recorded in Limassol and the free areas of Famagusta, while Paphos saw a slight decline. Office and warehouse prices also changed only marginally.
Tourist property and rental market
The tourist property segment also continued to grow, although at a more moderate pace than in previous periods. Over the year, the value of tourist properties increased by:
- tourist apartments — +3.66%;
- tourist houses — +2.42%.
Demand for these properties is supported by the resilience of Cyprus’s tourism sector and continued interest in real estate in popular resort areas. In the first quarter of 2026, the free areas of Famagusta recorded the strongest increase in tourist apartment prices, at +1.28%. Tourist houses in the area increased in value by 0.39%. In Paphos, growth was minimal:
- tourist apartments — +0.24%;
- tourist houses — +0.30%.
In Larnaca, the value of both types of tourist property remained unchanged. In Limassol, prices for tourist apartments were also stable, while tourist houses increased by 0.51%. At the same time, rental rates continued to rise. The highest annual growth was again recorded for apartments:
- apartments — +5.1%;
- offices — +3.03%;
- houses — +2.79%;
- warehouses — +2.58%;
- retail properties — +0.66%.
In the tourist segment, rents increased by 2.05% for tourist apartments and by 2.75% for tourist houses. This is particularly important for investors: rising rental rates continue to support the attractiveness of residential property even in an environment of moderate price growth.
Property yields in Cyprus remain stable
Property yields remained almost unchanged compared with the first quarter of 2025.
The changes were as follows:
- apartments — from 5.39% to 5.44%;
- offices — from 5.59% to 5.6%;
- houses — from 2.99% to 2.97%;
- retail properties — from 5.78% to 5.77%;
- warehouses — from 4.23% to 4.2%;
- tourist apartments — from 5.76% to 5.67%;
- tourist houses — from 2.79% to 2.8%.
The Cyprus property market at the beginning of 2026 was therefore characterised not by a sharp rise in prices, but by moderate and steady growth. Apartments remain the main driver of the market: they recorded the highest annual increase in value at 4.09%, while rental rates rose even faster, by 5.1%. For investors, this makes residential property one of the most attractive segments.
Commercial property is developing more slowly, particularly retail properties, whose value increased by only 0.72% over the year. RICS tracks property values and rental rates on a quarterly basis in Nicosia, Limassol, Larnaca, Paphos and the free areas of Famagusta. The study covers apartments, houses, offices, retail properties and warehouses, as well as tourist real estate. The estimates are based on data from certified RICS professionals working in the relevant Cyprus property markets.
Overall, the beginning of 2026 confirms the continued resilience of the Cyprus property market. Demand for apartments remains high, rents continue to rise, and prices are increasing without sharp fluctuations. For buyers, this means a more stable market, while investors can focus primarily on areas with strong rental demand and potential for further price growth.