The latest edition of the RICS Cyprus Property Index with KPMG in Cyprus provides updated insight into property price and rental movements across the main property sectors and districts of Cyprus, based on data for the fourth quarter of 2025.

Key Findings

• Apartments recorded the strongest annual price gain across all residential sectors, rising 5.03% year-on-year. On a quarterly basis, Paphos led all districts in apartment price growth, with solid gains also recorded in Nicosia and Limassol. Long-term trend data confirms apartments remain the preferred investment asset class in Cyprus.
• Houses posted a robust annual increase of 4.63%, the second strongest gain overall. Limassol led all districts in quarterly price appreciation for houses, continuing its position as the dominant residential market for this property type.
• Warehouses delivered an annual price increase of 4.11%. On a quarterly basis, Larnaca posted the second strongest district gain of the quarter, with warehouse performance in the district particularly notable. Paphos Warehouse was the weakest performer across all sectors and districts during the quarter.
• Offices grew 4.22% year-on-year, with the sector outperforming all other categories on a quarterly basis. Paphos Office recorded the strongest quarterly increase of the entire index, followed closely by Larnaca's Office market, reflecting growing demand for quality commercial space outside Nicosia and Limassol.
• Retail remained the weakest sector, with a modest annual gain of 0.62%. Price movement was negligible across most districts on both a quarterly and annual basis. Limassol recorded the largest gain for this asset class, though the increase remained small.
• Rental Values continued to grow across all sectors. Apartments recorded the strongest rental increase at 5.79% year-on-year, followed by Holiday Apartments (3.39%) and Offices (3.13%). Retail again registered the smallest rental gain at 0.43%, consistent with its weak capital value performance.

Holiday Assets continued their positive trajectory. Holiday Apartments rose 4.31% year-on-year, outperforming Holiday Houses which grew 2.45%. On a quarterly basis, Limassol led gains for both holiday property types, with Paphos also posting a notable increase in Holiday Apartments. Larnaca and Famagusta recorded more modest quarterly movements across both categories.

Yields – Cyprus (Q4 2025)

• Apartments: 5.45%
• Houses: 2.96%
• Retail: 5.78%
• Warehouses: 4.19%
• Offices: 5.58%
• Holiday Apartments: 5.66%
• Holiday Houses: 2.79%

Yields were broadly stable compared to the same quarter of the previous year, with marginal movements across all asset types.

Property Type Definitions

• Apartments: Standard two-bedroom urban flats (85 sqm, medium quality).
• Houses: Three-bedroom semi-detached houses with garden (250 sqm, medium quality).
• Retail: High-street ground-floor units (100 sqm) and mezzanine spaces (50 sqm).
• Offices: Grade A, city centre spaces (200 sqm).
• Warehouses: Light industrial units (2,000 sqm) with office space (200 sqm).
• Holiday Properties: Apartments and houses in coastal or tourist areas, used for seasonal or leisure purposes.

This index is compiled by RICS-certified property professionals using a methodology developed by the University of Reading (UK), ensuring consistent and reliable insights for investors, banks, and policy makers monitoring the Cyprus property market.

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