Cyprus’s real estate market closed the third quarter of 2025 with steady growth. According to the RICS Cyprus Property Index with KPMG Cyprus, demand continued to rise across all major cities, although price growth varied depending on region and property type. The market remains resilient, supported by stable economic conditions, low inflation, and high employment.
Limassol continues to dominate
In Q3 2025, Limassol once again proved to be the most dynamic region of the island. The strongest growth came from:
- Warehouses — prices increased by 3.75%
- Apartments — up 2.74%
Limassol property continues to attract robust demand due to the expansion of international business in the city, the inflow of companies, and improving logistics infrastructure.
Nicosia, Paphos, and the free areas of Famagusta also showed moderate price increases, especially in apartments and houses. Larnaca, on the other hand, remained mostly stable, except for a slight rise in office property prices.
Commercial real estate shows mixed results
Retail property was the weakest segment in Q3, with a particularly noticeable decline in Nicosia. This reflects shifting consumer behaviour, the ongoing move to online shopping, and the slow recovery of traditional retail.
Meanwhile, warehouses and office spaces maintained positive momentum thanks to the arrival of foreign companies, relocation of professionals, and the strengthening of Cyprus’s professional services sector.
Year-on-year trends: residential real estate leads the market
On an annual basis, the residential sector continues to drive market growth:
- Apartments: +4.5%
- Houses: +4.11%
- Warehouses: +3.69%
- Offices: +3.09%
- Retail: +0.73%
This confirms a long-term trend: residential properties—especially apartments—remain the most resilient and investment-attractive segment in Cyprus.
Resort real estate remains in high demand
Holiday properties again performed strongly year-on-year:
- Resort apartments: +3.43%
- Resort houses: +2.11%
This was supported by a record tourism season and high demand for short-term rentals.
Larnaca recorded the highest quarterly rise in apartment prices, while Paphos saw the strongest performance in house prices. However, apartment prices in Paphos rose only slightly, and house prices in Larnaca remained unchanged.
Rental prices continue to rise: apartments lead again
Rental costs increased in most segments:
- Apartments: +4.78%
- Resort apartments: +2.87%
- Offices: +2.53%
- Houses: +2.22%
- Resort houses: +1.98%
- Warehouses: +1.79%
- Retail spaces: +0.54%
The rise is driven by the influx of foreign professionals, strong domestic demand, and increased activity in short-term rentals.
Property yields: slight declines overall
Rental yields for most property types fell modestly year-on-year. The only exception was apartments:
- Apartments: 5.42% (+0.02%)
- Houses: 2.97%
- Retail: 5.76%
- Warehouses: 4.19%
- Offices: 5.59%
- Resort apartments: 5.68%
- Resort houses: 2.79%
Expert insights and economic impact
KPMG Cyprus representative Christoforos Anayiotos noted that the market shows significant regional variation. Limassol continues to record the strongest and most consistent growth, while Nicosia, Paphos, and the free areas of Famagusta are developing at more moderate rates. Larnaca remains stable, offering one of the most predictable market dynamics.
Simon Robinson of RICS Cyprus emphasised that Cyprus’s stable economic performance supports ongoing market resilience. High employment, low inflation, and record tourism levels continue to drive demand across all segments. Tourism remains one of the fastest-growing sectors, influencing rental demand and investment in resort properties.