Rental prices for “standard apartments” in Cyprus saw mostly upward movement between August 1, 2025, and October 1, 2025, according to a recent study conducted by consulting firm Perprice.
The research focused on one, two, and three-bedroom standard apartments across the country’s four largest cities: Limassol, Nicosia, Paphos, and Larnaca.
For the purposes of the study, “standard apartments” refer to residential units under 200 square metres that are not penthouses, are not located in luxury high-rise developments, do not have sea frontage, and do not include swimming pools. These types of properties represent up to 40 percent of the housing market nationwide, making them a key indicator of broader rental trends.
The findings revealed that average rental prices increased across most cities, mirroring price patterns seen across the wider residential rental market. The only exceptions were three-bedroom units in both Limassol and Larnaca, where declines were recorded.
Paphos saw the most significant rise in average rental prices, increasing by 4.8 percent during the two-month period, from an average of €1,178 to €1,234.
Nicosia recorded a moderate increase of 1.4 percent, with prices rising from €1,008 to €1,022.
Larnaca experienced a marginal change, moving from €1,125 to €1,126.
Limassol was the only city to register an overall decline, with average prices falling by 1.9 percent, from €1,969 to €1,931.
City-by-city rental prices breakdown
Nicosia – All apartment types recorded slight increases. One-bedroom units rose to €687, two-bedroom units to €1,001, and three-bedroom units to €1,336. The supply of available rentals slightly decreased from 1,705 to 1,693.
Limassol – The city saw mixed results. One-bedroom apartments rose to €1,409 and two-bedroom units climbed to €1,981. However, rent for three-bedroom apartments fell sharply by 7.7 percent to €2,197. The number of listings remained nearly stable, rising to 2,524.
Paphos – Two and three-bedroom apartments recorded notable increases, rising to €1,207 and €1,511 respectively. One-bedroom units saw a slight decrease, falling to €882. Rental availability declined, dropping from 335 to 298 units.
Larnaca – One and two-bedroom apartments saw minor increases, rising to €882 and €1,163 respectively. Meanwhile, three-bedroom units dropped to €1,256. The total number of apartments for rent increased from 491 to 542.
The report notes that the fluctuations may be seasonal and do not necessarily indicate long-term trends in the country’s rental market.
Impact of increasing prices
The sharp rise apartment rental prices worsens the shortage of affordable housing. Demand is exceeding supply, making it increasingly difficult for residents to secure suitable accommodation. At a land development conference in March 2025, Interior Minister Constantinos Ioannou noted that geopolitical tensions, inflation, higher construction costs, rising interest rates and strong demand from foreign workers have further restricted housing availability for locals.
To address the issue, the government has proposed removing apartment quota limits in tourist zones and reducing minimum apartment sizes to create more units. A new housing scheme to encourage mixed-use developments in commercial areas has also been introduced to support workers and ease pressure in urban centres. However, these measures are expected to take time to show results.
In the meantime, affordable rentals remain limited, competition for vacancies is intense, and landlords have become more selective; sometimes increasing rents and scrutinising potential tenants more closely, including their income and family situation.
I don’t doubt the veracity of the data obtained then. However, now and forward to the whole of 2026 season, one only has to scan Air B&B, Booking.com and other sites to see a totally different picture. For example, I have rented a 1-bed apt with a sea view in a popular location in Oroklini (with pool) for the past two years (late season mid-Sept mid-Oct) for Eur 850 for 4 weeks. This price fits affirms the Perprice survey findings. Suddenly, the same apt is now on the booking websites for Eur 2,000 for 4 wks (now and whole of 2026, take-it-or-leave-it). That’s a 135% increase!! A similar picture emerges across all apts on offer in Oroklini and the Larnaca region. Not much different either in other places and in the Turkish northern sector.
The recent extra demand for long-term rental accommodation from a large influx of Israelis appears to be continuing and may increase, as many appear to want to stay in Cyprus permanently and the Gaza ceasefire may not hold thus attracting a new additional surge of escaping Israelis.
The net consequence is the likelihood (dead cert?) that tourists from traditional northern Europe (especially UK) sources will start to boycott Cyprus unless and until the current hyper-inflated rental prices for holiday apts are corrected. It is unsustainable long-term.