The Cyprus branch of the Royal Institution of Chartered Surveyors (RICS) has published its latest report on changes in the Cyprus Property Price Index.
The latest figures from the agency show that prices for most types of housing in the island nation went up in the first three months of 2025. But property prices in Cyprus are still lower than they were in the last quarter of 2009, when they hit record highs.
In particular, in the first quarter of 2025, apartments went up by 3.88%, houses by 2%, warehouses by 1.04%, and offices by 2.84%. The only thing that went down in price a bit was retail space, by 0.05%. Holiday apartments went up by 1.4% over the year, and holiday homes by 0.35%.
So, looking at rental rates, prices for apartments in Cyprus went up by 2.87% in the first quarter of 2025, houses by 2.51%, warehouses by 1.27%, offices by 4.39%, holiday apartments by 1.56%, holiday homes by 2.26%, and retail space, on the contrary, decreased by 0.92%.
If you look at office rents in Cyprus by city, you'll see that in the first quarter of 2025, the highest increases were in Larnaca (+5.61%), followed by Famagusta (+1.72%), Paphos (+1.27%), Limassol (+0.52%) and Nicosia (+0.22%).
House rental prices also went up in all cities in Cyprus: in Larnaca by 4.78%, in the free areas of Famagusta by 1.55%, in Limassol by 0.53%, in Nicosia by 0.4% and in Paphos by 0.34%.
Prices of apartments went up in Larnaca (+4.18%), the free areas of Famagusta (+1.13%), Nicosia (+0.89%), Paphos (+0.82%) and Limassol (+0.53%) in the first quarter of 2025.
Rental rates for warehouses went up in Larnaca (+2.33%), Paphos (+0.67%) and Limassol (+0.56%). In the free areas of Famagusta and Nicosia, they stayed the same.
Finally, rental values for retail space went up in the free areas of Famagusta (+0.78%) and Limassol (+0.8%), but went down in Paphos (-0.9%) and Larnaca (-0.76%). In the free areas of Famagusta, the numbers didn't change.
The annual return on real estate in Cyprus in Q1 was:
- 5.39% for apartments;
- 2.99% for houses;
- 5.78% for shops;
- 4.23% for warehouses;
- 5.59% for offices;
- 5.76% for holiday apartments;
- 2.79% for holiday homes.
RICS Chief Economist Simon Rubinsohn said that even though property prices in Cyprus have become more stable recently, the overall economic situation is still good. It looks like the economy is going to grow more than we thought it would at the start of the year. Also, inflation is a bit higher than we'd hoped, but it should get back to around 2% over time. If we invest more and the population is growing, then the economy might do better in the long run.
Just to remind you, the Cyprus House Price Index is a quarterly index that measures changes in average residential property prices. It covers all types of residential properties, both new and second-hand. The data used to compile the indices comes from the Department of Lands and Surveys of the Ministry of Interior. The data covers all areas that the Government of the Republic of Cyprus controls.