The latest RICS Cyprus Property Index with KPMG in Cyprus (Q4 2025) saw mild price fluctuations across all categories of real estate in Cyprus.
While the Office sector outperformed all other categories, Apartments registered the second highest gain, demonstrating a long-term resilience. Retail remained again the weakest performer, showing negligible price movement.
A year-on-year comparison shows that Apartments are still the preferred type of investment, followed at a small distance by Houses, Offices and Warehouses. Retail showed once again the smallest increase and remains the least favourable asset.
Overall, the quarter shows mostly positive price movements across districts, with variations in both property type and location.
By district, the strongest increase is in Paphos’ Offices, followed by Larnaca’s Warehouses then Offices, while the weakest is in Paphos’ Warehouses.
Retail remains stable in most areas; the biggest gain for this asset class, albeit a modest one, is in Limassol.
As far as Apartments and Houses are concerned, Paphos recorded the strongest gain in Apartments while Limassol recorded the strongest gain in Houses.
Residential leads the property market year-on-year
Annual comparisons reinforce the dominance of the residential sector:
- Apartments and houses posted the strongest YoY increases of 5.03% and 4.63% respectively.
- Warehouses and Offices followed with more moderate gains of 4.11% and 4.22% respectively.
- Retail continued its position as the weakest performer, with only a marginal annual growth of 0.62%.
This trend aligns with the long-term track, where residential property, particularly apartments, have shown the greatest resilience over time.
Holiday properties
Holiday homes remain among Cyprus’ strongest year-on-year performers:
- Holiday Apartments led the way at 4.31%, reflecting ongoing strong demand from the tourism sector.
- Holiday Houses posted annual increases of 2.45%, supported by consistent interest in lifestyle-driven investments.
District-level analysis shows that the biggest quarterly increases came from Larnaca’s Apartments and Paphos’ Houses, while Paphos Apartments delivered only marginal gains and Larnaca Houses remained flat.
Rental values: apartments drive growth
Rental values continue to grow, with the largest gain in Apartments, followed by solid increases in Holiday Apartments and Offices. The smallest gain was noted in Retail.
- Apartments – 5.79%
- Holiday Apartments – 3.39%
- Offices – 3.13%
- Warehouses – 2.48%
- Houses – 2.34%
- Holiday Houses – 2.24%
- Retail – 0.43%
Rental yields
Yields generally edged lower over the year across most property categories. The exception was Apartments, which recorded a marginal increase, further underlining their strong market position.
- Apartments 5.45% (+0.04%)
- Holiday Apartments 5.66%. (-0.05%)
- Offices 5.58% (-0.06%)
- Houses 2.96% (-0.07%)
- Holiday houses 2.79% (no change)
- Retail 5.78% (-0.01%)
- Office 5.58% (-0.06%)
- Warehouse 4.19% (-0.07%)
Yields were little changed when looking at the final three months of 2025 as against the same period a year earlier.
Statements by KPMG and RICS
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group, stated:
“During the fourth quarter of 2025, Cyprus’s property market recorded mostly positive movements across districts and asset categories. Paphos led the quarter with a strong increase in Office values, while Larnaca posted solid gains in Warehouses. The only noted decline was observed in Paphos Warehouses, slightly differentiating a positive trend of the category.
“Rental values rose moderately, with Apartments posting the largest annual increases, followed at a distance by Holiday Apartments. Retail remained the weakest performer, showing the smallest yearly change.
“Overall, the quarter reflects a resilient market environment, with residential and office assets maintaining momentum, while Retail continued to demonstrate limited demand.”
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The generally resilient economic picture is reflected in the latest property price data as well as in the sentiment feedback received through the RICS Cyprus Commercial Property Monitor. In particular, the strong trend in tourist arrivals is captured clearly in the RICS Cyprus Property Price Index with KPMG in Cyprus with holiday apartments as well homes showing solid price gains. Strong demand for good quality offices is also very evident in the latest results “.
Read the full RICS Cyprus Property Index with KPMG in Cyprus for Q4 2025
