The Cyprus property market sustained its stable growth trajectory in the third quarter of 2025, driven primarily by the residential sector and strong performance in Limassol. According to the latest RICS Cyprus Property Index with KPMG in Cyprus, apartments and houses continue to be the most resilient assets, while the retail sector remains the weakest link.
District Performance: Limassol is the Top Performer
Limassol recorded the strongest quarterly price growth overall, showcasing robust demand across commercial and residential sub-sectors:
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Limassol: Price gains were led by Warehouses (3.75% quarterly increase) and Apartments (2.74% quarterly increase).
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Residential Stability: Nicosia, Paphos, and Famagusta all posted modest residential price increases in houses and apartments.
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Larnaca: Values were largely stable, with a small exception for Office prices, which saw a modest rise.
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Retail Weakness: The retail sector delivered the most subdued results island-wide, including a noticeable fall in retail property values in Nicosia.
Year-on-Year Growth: Residential Dominance Confirmed
Annual data confirms the residential property sector’s role as the market’s backbone, with apartments showing the highest long-term resilience:
| Вид недвижимости | Annual Price Change (YoY) |
| Apartments | +4.50% (Strongest Growth) |
| Houses | +4.11% |
| Warehouses | +3.69% |
| Offices | +3.09% |
| Retail | +0.73% (Weakest Growth) |
Meanwhile, holiday properties—especially Holiday Apartments (+3.43%)—continued to be strong performers, supported by the booming tourism industry.
Rental Market Sees Continued Pressure
Rental values also experienced continuous growth over the year, indicating persistent demand from foreign workers, domestic residents, and the short-term rental market. Apartments recorded the strongest rental increase at 4.78%.
Despite the price and rental increases, rental yields generally edged slightly lower across most property categories year-on-year. Apartments were the notable exception, recording a marginal increase to 5.42% (up by 0.02 percentage points), further solidifying their strong investment position.
Industry Commentary
Christophoros Anayiotos of KPMG Cyprus emphasized the market’s segmented nature, noting “a resilient residential sector, especially in apartments, while commercial assets limited drive, highlighting a careful but steady market environment.”
Simon Rubinsohn, Chief Economist at RICS, attributed the property market’s solid performance to favorable economic conditions, stating that the “steady trajectory of the Cypriot economy supports the Cyprus property market,” backed by strong economic growth, near-record employment, and very low inflation.
Source: Stockwatch.com.cy