Property prices and rental rates in Cyprus rose again in Q1 2025, according to the latest “RICS Cyprus Property Price Index with KPMG in Cyprus.” The data points to strong growth in both sales and rents, especially in Larnaca and across commercial real estate sectors.
Sales Prices: Up Across Most Property Types
Compared to Q1 2024, most property categories saw price increases:
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Apartments: +3.88%
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Offices: +2.84%
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Houses: +2.00%
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Warehouses: +1.04%
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Shops/Stores: Slight dip of -0.05%
Apartments saw the biggest jump, but it was commercial properties—particularly offices in Larnaca, that led the charge in specific regional gains.
Rental Market: Offices Lead the Way
The rental market followed similar upward momentum, with office spaces seeing the most significant growth:
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Offices: +4.39%
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Apartments: +2.87%
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Houses: +2.51%
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Holiday Homes: +2.26%
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Holiday Apartments: +1.56%
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Warehouses: +1.27%
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Stores: Only category with a drop, at -0.92%
According to KPMG Cyprus’ Christoforos Anagiotos, the data reflects a consistent trend: moderate to strong growth in most areas, with storefront properties lagging behind, a continuation of past quarters.
Larnaca in the Spotlight
Anagiotos highlighted Larnaca as a standout performer, noting “an overall increase in property values in the city,” especially among offices and residential units. Other districts also posted gains, but at a more moderate pace. Warehouses had smaller increases, while shops continued their slight decline.
Rents tell a similar story, rising for most property types, but stagnant or falling for retail spaces, suggesting ongoing investor caution in the commercial storefront sector.
Resilience Amid Global Challenges
Simon Rubinsohn, Chief Economist at RICS, pointed out that despite global economic instability and geopolitical pressures, Cyprus’ real estate market remains stable and resilient.
He added, “Price trends remain generally positive, and while the macroeconomic environment is uncertain, Cyprus’ economy has held up well so far.”
The quarterly RICS Cyprus Property Price Index is considered a key tool for understanding shifts in the market and is closely watched by investors, developers, and policymakers alike.
Source: Stockwatch.com.cy