Cyprus Property News
August 27, 2025
By Nigel Howarth
The latest RICS Cyprus Property Price Index with KPMG shows a stabilising real estate market in Q2 2025, with moderate gains in housing, rentals, and leisure properties, while shops continue to lag behind.
According to the price index, most property categories recorded moderate growth during the second quarter, with apartments and houses leading the way.
District highlights
- Larnaca: Strongest overall price growth, especially in houses and warehouses.
- Nicosia: Stable upward trend in the residential sector, with increases in the price of both houses and apartments.
- Limassol: Almost no change, with some negative shifts, particularly in warehouses and shops.
- Paphos: Largest decline in warehouses, though apartments saw a slight rise.
- Famagusta: Offices recorded the highest increase among all cities.
Long-term price trends and comparisons
Compared with Q2 2024:
- Strongest growth: Apartments and houses.
- Moderate growth: Offices and warehouses.
- Weakest performance: Shops, continuing to show limited investment appeal.
Over the longer term, the Index confirms steady improvements following the fluctuations of the past decade. Residential property (both houses and apartments) has seen significant price growth, while commercial properties, especially shops, remain less dynamic.
Leisure properties: tourism boosts demand
Leisure real estate remains particularly strong.
- Tourist apartments: Top performer with notable increases.
- Holiday homes: Continued upward trend.
Tourism demand keeps these categories high on the list for both buyers and investors. On a city level, Larnaca recorded the strongest quarterly growth for holiday homes and apartments, while Paphos saw the weakest.
Rental prices
Rental values continue to climb compared with the previous year:
- Highest increases: Apartments, followed by warehouses.
- Smaller increases: Most other categories.
- Decline: Shops, extending the negative trend of recent quarters.
This contributes to the sense of stabilization, with limited fluctuations across the market.
Property yields
Property yields showed only minor changes versus 2024:
- Apartments: 5.41% (vs 5.43%)
- Houses: 2.97% (vs 3.00%)
- Shops: 5.75% (vs 5.80%)
- Warehouses: 4.24% (vs 4.25%)
- Offices: Stable at 5.61%
- Tourist apartments: 5.75% (vs 5.77%)
- Holiday homes: 2.79% (vs 2.78%)
The only noticeable decline came from the retail sector.
RICS/KPMG Commentary
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“Economic news flow generally remains solid helping to underpin the real estate market. This is visible in the latest results from the RICS Cyprus Property Price Index with KPMG in Cyprus and also the Q2 RICS Commercial Property Monitor which captures sentiment on the island. Significantly, the latter is suggesting that the trend in investor enquiries remains on a positive trajectory”.
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group, stated:
“The second quarter of 2025 shows modest increases across all sectors, but most notably in Apartments and Houses. Larnaca recorded the highest overall increases, particularly in Houses and Warehouses, while Limassol showed almost flat and/or negative changes. Retail appears to be the least favourable asset, recording minor movements, albeit a strong increase in Larnaca.
“Rental values once again showed modest increases, led by Apartments, while Retail recorded a minor decrease, continuing the trend of previous quarters. Overall, the Index shows a tendency towards stabilisation, exhibiting minor increases in both sale and rental values, and this is further strengthened by minor and/or flat movements in property yields”
RICS/KPMG: Cyprus property market stabilising – Cyprus Property News