Larnaca emerged as Cyprus’ strongest property market in the second quarter of 2026, according to the RICS Cyprus Property Index with KPMG in Cyprus. The district led growth across several key sectors, including apartments, houses and offices. It also recorded the biggest quarterly gains for both holiday apartments and holiday houses.
Paphos was the other clear performer, with broad-based growth across residential and commercial property. House prices were among the strongest in the country, while offices, warehouses and retail also recorded gains. Limassol delivered more moderate growth, led by houses and offices.
Famagusta was mixed, with marginal house growth, flat office values and a small retail decline. Nicosia was broadly flat, with apartment and house prices unchanged and only marginal office growth.
Apartments remain the market leader
Apartments were the strongest mainstream property class on an annual basis, with values rising by more than 5% year on year. Warehouses and houses followed, while retail remained the weakest sector.
The figures point to a market that is still growing, but at different speeds. Larnaca and Paphos stood out for warehouse and house performance, while retail struggled to gain momentum.
Property yields changed little from Q2 2025. Apartment yields rose to 5.51% from 5.41%, while house yields increased to 3.01%. Retail stood at 5.78%, offices at 5.63% and warehouses at 4.15%, down from 4.24%.
Leisure property stays strong
Tourist property remained a bright spot. Holiday apartments continued to outperform holiday houses on a year-on-year basis, while both recorded price gains during the quarter.
Larnaca again led the market, posting the largest quarterly increase for both types of holiday property. Holiday apartment yields rose to 5.82%, while holiday house yields reached 2.85%.
Rental values also continued to rise. Apartments recorded the strongest rental growth, followed by holiday apartments and houses. Retail saw the smallest increase, with no major property sector recording a rental fall in the report.
Overall, the Q2 2026 data show a steady but uneven Cyprus property market. Larnaca is setting the pace, while apartments and leisure homes remain key drivers of growth.
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”.
