The Cypriot real estate market continues its resilience and momentum, with apartments remaining the strongest performing category and Larnaca leading the market.
As shown by the results of the RICS Cyprus Property Price Index with KPMG in Cyprus for the second quarter of 2026, prices recorded an increase in most property categories, although there were specific sectors with greater strength.
Strong returns for apartments
Apartments were the ones that stood out during the second quarter, as reflected in the prices of holiday apartments, while commercial properties, for the time being, have limited momentum compared to the other categories.
On an annual basis, the rise in apartment values exceeds 5%, followed by warehouses (4.22%) and then residential properties (4.04%). In contrast, commercial properties continue to show a mild increase (0.66%).
Apartments recorded the strongest overall performance in Larnaca in the second quarter of 2026, with a positive sign also noted in the other provinces, while stabilization was recorded in Nicosia.
Housing prices on the rise
Residential property prices showed broad growth, with Larnaca and Paphos leading the market. Limassol recorded a moderate increase, freehold Famagusta recorded a marginal increase, while values in the capital remained unchanged.
Offices also recorded the largest increase in Larnaca, followed by moderate increases in Limassol and Paphos. Nicosia recorded a marginal rise in office values, while there was no change in freehold Famagusta.
Warehouses also showed strong growth, particularly in Larnaca, followed by Paphos.
Commercial properties (stores) were the lowest-performing category, with moderate growth in Paphos and a small decline in free Famagusta.
The momentum of holiday properties continues
Based on the results of the 'RICS Cyprus Property Price Index with KPMG in Cyprus,' holiday properties maintain a positive image in the second quarter of 2026, as both holiday apartments and holiday homes recorded price increases, highlighting the continued momentum of the tourism market.
It is noted that on an annual basis, holiday apartments (5.18% increase) outperform holiday homes (3.01% increase). The generally stable trend demonstrates the continued strong demand for holiday properties.
Larnaca recorded the strongest quarterly price increase in holiday apartments (3.85%) and holiday homes (3.10%) in the second quarter of 2026. Free Famagusta experienced the lowest increase for holiday apartments (0.63%) and Limassol for holiday homes (0.36%).
The values of the rentals
Rental values continued to rise in the second quarter, with apartments recording the largest annual increases, followed by holiday properties and houses.
Specifically, rental values increased annually by 7.36% for apartments, by 6.43% for holiday apartments, by 5.30% for residences, by 5.19% for holiday homes, by 4% for offices, by 1.96% for warehouses, while 1.22% was the annual increase in rents for commercial properties.
Regarding the returns of each property category on an annual basis, the greatest potential is shown by holiday apartments (5.82%), followed by commercial properties (5.78%), offices (5.63%), apartments (5.51%), warehouses (4.15%), residences (3.01%) and holiday homes (2.85%).
(Source: InBusinessNews)
