Cyprus property prices continued to rise in the second quarter of 2026, with Larnaca emerging as the strongest-performing district across several parts of the market. The latest RICS Cyprus Property Index with KPMG in Cyprus shows broad gains in residential and commercial property, although retail remained the weakest asset class.
Apartments were the standout performer during the quarter. Across Cyprus, apartment values rose by more than 5% year on year, ahead of warehouses and houses. The report also highlights continued strength in holiday apartments, reflecting firm demand linked to the tourism sector.
Larnaca leads the Cyprus property market
Larnaca recorded the strongest overall performance for apartments, while also leading growth in houses, offices and warehouses. Paphos was another strong market, particularly for houses and warehouses. Limassol posted more moderate gains, while Nicosia was largely flat in residential property and recorded only a small rise in offices.
The figures suggest that the recovery is not spread evenly across Cyprus. Larnaca stands out for the breadth of its gains, while Nicosia has seen less movement. Famagusta also lagged in several categories, with retail values recording a minor decline.
Apartments remain the Cyprus property market leader
Residential property continues to provide much of the momentum in the Cyprus market. Apartments recorded a 5.42% year-on-year increase, compared with 4.04% for houses, according to the index. Retail was much weaker, with growth of just 0.66%, while warehouses rose 4.22% and offices increased 3.69%.
Rental values are also moving higher. Apartments recorded the largest rental increase, followed by holiday apartments and houses. Retail posted the smallest gain, reinforcing its position as the weakest-performing major property sector in the latest index.
Holiday property demand stays firm
Holiday property remains a bright spot for Cyprus. Both holiday apartments and holiday houses recorded price increases in the second quarter, with the report linking the trend to the continuing strength of the tourism sector.
Larnaca recorded the strongest quarterly price increase for both holiday apartments and holiday houses. Famagusta showed the smallest movement for holiday apartments, while Limassol recorded the lowest movement for holiday houses. On a year-on-year basis, holiday apartments continued to outperform holiday houses.
Market yields remain broadly stable
Investment yields changed little over the year to the second quarter of 2026. Apartment yields rose from 5.41% to 5.51%, while house yields increased from 2.97% to 3.01%. Retail yields moved from 5.75% to 5.78%, and office yields rose slightly from 5.61% to 5.63%.
Holiday apartments also saw a modest rise in yield, from 5.75% to 5.82%. Holiday house yields increased from 2.79% to 2.85%. Warehouse yields were the exception, edging down from 4.24% to 4.15%.
A market still moving upwards
The second-quarter index points to a Cyprus property market that remains broadly positive, but with clear differences between locations and asset types. Apartments are leading the market, while holiday property continues to benefit from strong tourism demand. Larnaca is the district to watch, given its strong performance across several sectors.
Retail remains the main weak spot. With gains limited in most areas and a decline recorded in Famagusta, investors may continue to favour residential and selected commercial assets. Overall, the latest RICS and KPMG data suggests that Cyprus property prices are still edging higher rather than entering a broad-based downturn.
RICS/KPMG Commentary
On behalf of KPMG in Cyprus, Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group, stated:
“During the second quarter of 2026, the Cyprus’ property market continued to demonstrate resilience, with positive price movements recorded across most districts and asset categories. Apartments remained the strongest-performing asset class, showing growth across all major districts, with Larnaca leading the market. Housing values also recorded positive gains, particularly in Larnaca and Paphos, reflecting continued demand in the residential sector.
“Offices registered moderate increases, with the strongest growth observed in Larnaca, while Warehouses continued their positive course, supported by notable gains in Larnaca and Paphos. Retail properties remained the weakest-performing asset class, recording only modest growth in most districts and a slight decline in Famagusta, indicating that demand in this segment continues to lag behind other sectors.
“Rental values maintained their upward trend, with Apartments posting the strongest annual increases, followed by Holiday assets and Houses. The holiday property sector continued to perform positively, with Holiday Apartments outperforming Holiday Houses, highlighting the ongoing strength of Cyprus’ tourism market.
“Overall, the second quarter reflects a stable and healthy market environment, underpinned by sustained demand for residential and holiday assets, while commercial properties continue to show selective growth, albeit Retail which remains the least favoured asset class”.
On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:
“The Cypriot economy continues to demonstrate considerable resilience in the face of the ongoing geopolitical challenges. The latest results from the RICS Cyprus Property Price Index with KPMG in Cyprus demonstrate this clearly with concerns about the impact on the tourist industry in particular failing to be realised as holiday related assets continue to move upwards in pricing.
“Another indication that the commercial real estate sector is holding up is provided by the RICS Cyprus Commercial Property Monitor which shows a modest improvement in sentiment in recent months and overseas investment enquiries picking up after a softer first quarter”.
