The Cyprus real estate market closed Q4 2025 with subtle price shifts across all property categories, as detailed by the latest RICS Cyprus Property Index with KPMG in Cyprus. While office spaces led the growth curve, apartments maintained strong momentum, reinforcing their status as a resilient investment option. Retail properties, consistently, showed minimal price movement, highlighting ongoing challenges in demand.
A year-on-year analysis confirms residential properties as the market frontrunners. Apartments posted the highest annual increase of 5.03%, followed closely by houses at 4.63%. Warehouses and offices experienced moderate growth of 4.11% and 4.22%, respectively. Retail property remains the least dynamic sector, with just a modest 0.62% rise.
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Regionally, Paphos recorded the most substantial office price increase, while warehouses and offices in Larnaca also showed noticeable gains. Interestingly, Paphos warehouses were the only segment with a slight decrease, an outlier in an otherwise positive performance. Residential properties also showed district variances: Paphos led apartment price growth, whereas Limassol saw the strongest rise in house prices. Retail assets remained steady across most areas, with the largest albeit modest gain in Limassol.
Holiday homes continue to be attractive investments, with holiday apartments achieving a solid 4.31% annual price increase, boosted by Cyprus’s flourishing tourism sector. Holiday houses also witnessed healthy gains at 2.45%, reflecting ongoing lifestyle-driven buyer interest. Notably, Larnaca’s apartments and Paphos houses saw the largest quarterly increases, while Paphos apartments and Larnaca houses showed minimal to no change.
Rental values climbed across the board, led prominently by apartments with a 5.79% increase. Holiday apartments and office rentals also posted respectable rises, while retail rentals lagged behind with only a 0.43% growth.
While rental yields have generally declined marginally across sectors during the year, apartments bucked this trend with a small uptick to 5.45%. Other notable yields include holiday apartments at 5.66%, retail at 5.78%, and offices at 5.58%, underscoring the consistent appeal of these property types for investors.
Christophoros Anayiotos, Board Member and Head of Real Estate Industry Group at KPMG Cyprus, noted:
“Q4 2025 showed predominantly positive price developments across different districts and asset classes. Paphos led with strong office value growth, while Larnaca’s warehouses posted solid gains. Rental values also rose moderately, particularly for apartments and holiday apartments, whereas retail remained subdued.”
Simon Rubinsohn, Chief Economist at RICS, added:
“The robust economic backdrop in Cyprus is reflected clearly in property prices and market sentiment. The surge in tourist arrivals supports the strong price growth in holiday apartments and residences, while demand for quality office spaces remains high.”
The Q4 2025 market data confirms Cyprus real estate’s sustained resilience, especially within the residential and office sectors. Retail properties continue to face demand challenges, but overall the landscape remains positive for buyers and investors alike. This balanced view encourages anyone interested in Cyprus property to remain attentive to sector-specific trends and local district nuances.
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