The Cyprus property market maintained a steady growth trajectory in the first quarter of 2025, with apartments driving the strongest gains both quarterly and annually, according to the latest RICS Cyprus Property Index published in collaboration with KPMG in Cyprus.

The 60th edition of the quarterly index reveals that property values rose across nearly all asset classes, albeit at varying degrees. Apartments posted the most significant increases, registering a 3.88% year-on-year rise in market value. Offices (2.84%) and houses (2.00%) followed, while warehouses recorded marginal growth (1.04%). Retail properties, however, remained flat with a slight 0.05% annual decrease.

At the district level, Larnaca emerged as the standout performer with the most pronounced quarterly growth, driven by strong demand for offices, houses, and apartments. Famagusta also saw modest gains, while Limassol and Paphos registered only minor increases. Nicosia posted the lowest growth figures.

The report highlights a continued trend of urban demand across key segments, with limited supply in some areas likely contributing to price pressures. Holiday properties — both apartments and houses — recorded small increases, indicating sustained, if subdued, interest in leisure-focused assets.

Rental values also continued their upward trend, with office rentals showing the highest year-on-year increase, followed by apartments and houses. Conversely, the retail sector experienced a decline in rental values, reflecting ongoing structural challenges in the commercial high-street segment.

Holiday rentals saw moderate growth, reinforcing the sector’s seasonal stability.

Overall property yields remained relatively stable compared to the same period last year. Office yields were the only category to post a notable increase, rising from 5.51% to 5.59%. Apartments and retail yields experienced minor declines, now standing at 5.39% and 5.78% respectively.

The long-term index trend, tracking data since 2009, shows the Cyprus property market continuing its post-crisis recovery path. With growing demand concentrated in residential and office assets, particularly in secondary cities like Larnaca, market momentum appears to be holding steady despite broader economic uncertainties.

The index, which is compiled using methodology developed by the University of Reading, tracks prices and rents in Nicosia, Limassol, Larnaca, Paphos, and Famagusta. It is based on data from accredited RICS professionals and covers all major urban asset classes, including residential, retail, office, industrial, and holiday properties.