Larnaca continues to strengthen its position in the real estate market, registering the highest increases in property values during the first quarter of 2025, according to the latest RICS Cyprus Property Price Index with KPMG in Cyprus.

Christophoros Anayiotos, managing director and head of real estate and land development at KPMG Cyprus, said that Larnaca stood out once again, with the largest increase recorded in offices, followed by residential properties such as apartments and houses.

He added that “the first quarter of 2025 shows an overall increase in property values in Larnaca, while other districts record moderate increases.”

At the same time, warehouses recorded only small gains, while commercial properties, particularly shops, posted a decline, “continuing the trend of previous quarters,” he said.

In quarterly terms, apartments saw the most significant gains, especially in Larnaca, which outperformed all other regions.

By contrast, Nicosia recorded the smallest increases, while Limassol and Paphos followed with only modest rises. Famagusta showed a more balanced profile, with moderate growth across most categories.

Offices, houses and apartments in Larnaca were in particularly high demand during the period under review.

However, retail properties showed almost no movement and, overall, commercial property continued to underperform. Warehouses posted very marginal quarterly increases.

The Index, as cited in Philenews, also shows that holiday properties recorded small increases over the previous quarter.

Both apartments and houses in this category posted year-on-year gains, with apartments leading the trend. Once again, the strongest annual increase was recorded in Larnaca, followed by smaller movements in Famagusta. Elsewhere, the remaining districts either stagnated or saw slight declines in prices.

On the rental side, prices continued their upward trajectory compared to the same period last year, with the sharpest increases seen in office spaces, followed by apartments and houses.

Rents for holiday properties also rose slightly, while retail rents declined further, reflecting the pattern observed in sale prices.

As for yields, these remained broadly stable, with only office properties showing any notable change.

According to Simon Rubinsohn, chief economist at RICS, the property market in Cyprus remains relatively stable despite the ongoing uncertainty in the global economy.

He commented that “the Cypriot economy has so far remained relatively resilient in the face of rising geopolitical tensions.”

Nevertheless, he warned that “the increased level of global macroeconomic uncertainty inevitably suggests a more challenging policy environment.”

Even so, “the property market remains stable, with prices generally increasing.”