The Cyprus property market continued its steady upward trajectory in the third quarter of 2025, with most asset classes recording modest price increases and demand remaining strongest for apartments and industrial space. The latest RICS Cyprus Property Index with KPMG in Cyprus shows a market characterised by resilience in residential sectors and growing divergence between districts and property types.

According to the report, apartments and houses posted the largest year-on-year increases, with warehouses and offices following. Retail continues to lag behind, once again appearing as the least favourable investment asset due to marginal gains or declines across several districts.

Limassol recorded the strongest performance in Q3, driven mainly by sharp price increases in warehouses and solid growth in apartments. This continues the district’s trend of outperforming the rest of the island across multiple sectors.

Nicosia, Paphos and Famagusta registered more moderate increases, primarily in houses and apartments. In contrast, Larnaca’s prices remained broadly unchanged, apart from a small uplift in office values. The most notable price drop islandwide was in Nicosia retail, continuing retail’s ongoing downward pressure.

Quarter-on-quarter, warehouses recorded the strongest gain, followed closely by apartments — which the index describes as “the most resilient category over time”. Retail values saw slight declines, extending a trend seen in previous quarters.

On a yearly basis, apartments once again led the market, strengthening their position as the top performer in Cyprus’s urban property landscape.

Cyprus’s tourism-driven demand continues to buoy the holiday-property segment. Holiday apartments remain among the strongest performers, with both holiday apartments and holiday houses posting further annual increases. Larnaca recorded the largest quarterly rise in holiday apartments, while Paphos led in holiday houses.

Rental values increased across nearly all asset types compared to a year earlier. The strongest rental growth came from apartments, followed by holiday apartments. Retail again posted the smallest rental increase, mirroring its weak price performance.

Property yields generally declined slightly year-on-year, reflecting rising prices and strong investor demand.

• Apartment yields inched up from 5.40% to 5.42%, the only asset class to record a rise.

• Yields for houses, retail, warehouses, offices, and holiday properties fell marginally.

The long-term Cyprus Property Index continues its upward movement, with all sectors experiencing incremental gains since the post-pandemic recovery. Apartments and warehouses show the most consistent long-term strength, while retail continues to underperform.