Limassol drives third quarter property gains

Cyprus’ real estate market exhibited a resilient but mixed performance during the third quarter of 2025, according to the RICS Cyprus Property Price Index, compiled and published in collaboration with KPMG Cyprus.

The latest edition of the index showed that the island’s real estate market combined strong residential growth with weaker commercial trends, with the latter slightly offsetting the former’s positive momentum.

According to KPMG Cyprus, the quarter saw modest price increases across most property categories, confirming the sector’s continued stability despite regional and global economic uncertainties.

Christophoros Anayiotos, board member and head of the real estate industry group at KPMG Cyprus, said that Limassol led market activity, posting the highest gains in warehouses and apartments.

At the same, Anayiotos continued, Nicosia, Paphos, and Famagusta recorded more moderate growth, mostly in houses and apartments.

He further stated that Larnaca remained largely unchanged, with the exception of a slight rise in office values, adding that apartments and houses continued to record the strongest year-on-year price increases, whereas retail properties underperformed.

“Rental values rose modestly, with apartments leading and houses following,” said Anayiotos.

“Other sectors, including retail, warehouses, and offices, showed minimal changes,” he added.

Moreover, he said that the results reflected “a resilient residential sector, especially in apartments, while commercial assets limited drive, highlighting a careful but steady market environment”.

From RICS’s perspective, Simon Rubinsohn, chief economist at RICS, said that “the generally solid performance from the Cypriot economy is continuing to underpin the real estate market as highlighted by the Q3 RICS Cyprus Property Price Index with KPMG in Cyprus”.

“Economic growth remains solid, employment is hitting record levels and inflation remains very subdued,” he added.

“Critically, tourism continues to be one of the fastest-growing parts of the economy with arrivals hitting historical highs over the summer months,” he explained.

The Q3 2025 report showed that, compared with the previous quarter, warehouses recorded the strongest gains, followed closely by apartments, which remain the most resilient asset category over time.

At the other end, retail properties showed marginal losses in value, continuing the negative trend seen in earlier quarters.

On a year-on-year basis, apartments and houses saw the largest price increases, followed by warehouses and offices, while retail once again trailed as the least favourable investment asset.

At a district level, the report highlighted that Limassol posted the highest overall growth, with notable gains in warehouses and apartments.

Nicosia, Paphos, and Famagusta experienced more modest gains, largely in residential assets, while Larnaca’s market remained flat except for a small increase in offices.

The most pronounced movements of the quarter were a sharp rise in warehouse prices in Limassol and a decline in retail values in Nicosia.

The report also found that holiday properties remained among the strongest performers, with holiday apartments leading the way, supported by the robust tourism sector.

Over the past year, both holiday apartments and houses continued to register price increases, with apartments again showing the larger gains.

At the district level, the largest quarterly increases were recorded in Larnaca for apartments and Paphos for houses, while the smallest gains were observed in Paphos apartments and Larnaca houses, where prices remained unchanged.

The report also mentioned that rental values continued to rise compared with a year earlier, with the strongest increases in apartments and holiday apartments, while retail recorded the smallest gains.

It added that yields have edged slightly lower overall, although apartments bucked the trend, registering a small increase.

The full publication of the RICS Cyprus Property Price Index with KPMG in Cyprus for Q3 2025 is available on the RICS website.