Cyprus Property Market Sees Continued Growth in Q3 2025 with Limassol at the Forefront

The Cyprus real estate market maintained its positive momentum in the third quarter of 2025, showcasing steady price increases across various districts and property categories. According to the recent RICS Cyprus Property Index with KPMG Cyprus, growth remains consistent yet regionally diverse.

Limassol Leads the Market Performance

Limassol continued to outperform other districts, posting the highest quarterly price growth on the island. This surge was notably driven by a robust demand for warehouses (+3.75%) and apartments (+2.74%). This affirms Limassol’s growing appeal, particularly among investors and businesses seeking commercial and residential assets.

Moderate Gains in Nicosia, Paphos, and Famagusta

Other key districts such as Nicosia, Paphos, and Famagusta saw modest increases, mainly in houses and apartments. These areas reflect steady but less aggressive market activity compared to coastal hotspots.

Stable Market in Larnaca, Except Offices

Larnaca’s property values remained largely stable during Q3, except for a slight uptick in office prices. The commercial sector there appears cautious but shows localized growth potential.

Retail Sector Faces Challenges

The retail property segment was the weakest performer in the quarter, with a notable decline in retail values within Nicosia. This suggests evolving consumer patterns and cautious investor sentiment in the retail landscape.

Residential Properties Dominate Annual Growth

Over the past year, residential real estate continues to lead growth in Cyprus:

• Apartments increased by 4.50%
• Houses rose by 4.11%
• Warehouses and offices saw moderate rises of 3.69% and 3.09%, respectively
• Retail growth remains marginal at 0.73%

This trend underscores the resilience of residential assets, especially apartments, which consistently attract demand.

Holiday Properties Remain Popular

Holiday homes continue to be strong performers, benefiting from Cyprus’ robust tourism sector:

• Holiday apartments grew by 3.43%
• Holiday houses increased by 2.11%

District-level data highlights strong quarterly gains for Larnaca’s apartments and Paphos’ houses, while apartments in Paphos and houses in Larnaca showed little to no growth.

Rising Rental Values Bolster Market Confidence

Rental prices have risen year-on-year, led by apartments, reflecting sustained rental demand from locals, expatriates, and short-term tenants:

• Apartments: +4.78%
• Holiday apartments: +2.87%
• Offices: +2.53%
• Houses: +2.22%
• Holiday houses: +1.98%
• Warehouses: +1.79%
• Retail properties: +0.54%

The growth in rental values, especially for residential properties, demonstrates persistent market demand.

Rental Yields Show Slight Variations

While rental yields generally dipped slightly over the year, apartments were the notable exception, experiencing a modest increase. Current yields stand as follows:

• Apartments: 5.42% (+0.02%)
• Houses: 2.97% (-0.05%)
• Retail: 5.76% (-0.01%)
• Warehouses: 4.19% (-0.08%)
• Offices: 5.59% (-0.03%)
• Holiday apartments: 5.68% (-0.03%)
• Holiday houses: 2.79% (unchanged)

Insights from Industry Experts

Christophoros Anayiotos, representing KPMG Cyprus, emphasized the market’s district- and category-specific dynamics. He noted Limassol’s significant growth compared to more stable districts such as Larnaca and the moderate activity in Nicosia, Paphos, and Famagusta. He also highlighted rises in rental prices for flats and houses, with commercial sectors remaining subdued.

Simon Rubinsohn from RICS Cyprus pointed to the island’s steady economic growth supported by record employment and low inflation, supporting property market confidence. The tourism sector, in particular, experienced record visitor numbers, fueling demand for holiday properties.

Looking Ahead

For buyers and investors eyeing Cyprus, the ongoing strength of the residential market, especially in Limassol and key tourist hubs like Paphos and Larnaca, represents compelling opportunities. Whether you’re searching for affordable houses and villas or investing in commercial assets, staying informed with market trends is crucial as values evolve.

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