Housing and rental prices are rising in Cyprus
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Real estate prices in Cyprus continue to show steady growth. According to a new report by the Cyprus branch of RICS and KPMG, in the first quarter of 2025, the prices of most categories of residential and commercial properties increased, along with rental rates across the country.
General trends: property is becoming more expensive
Year-on-year, the price growth across key real estate categories is as follows:
- Apartments: +3.88%
- Houses: +2%
- Offices: +2.8%
- Holiday apartments: +1.4%
- Warehouses: +1.04%
- Holiday homes: +0.35%
- Retail spaces: -0.05% (slight decrease)
Price dynamics of apartments by region
In the first quarter of 2025, apartment prices increased in all major regions of the island. Larnaca led the way with a 4.18% increase, reflecting strong demand.
It was followed by the free areas of Famagusta with a 1.13% rise, Nicosia +0.89%, Paphos +0.82%, and Limassol with a 0.53% increase.
Despite differences in growth rates, the overall trend across the country remains upward, particularly in regions with active construction and infrastructure development.
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Rental rates: offices and housing in focus
Alongside rising property prices, rental rates are also increasing. This is particularly relevant for those considering Cyprus as an investment destination:
- Offices: +4.3%
- Apartments: +2.8%
- Houses: +2.5%
- Holiday homes: +2.2%
- Holiday apartments: +1.5%
- Warehouses: +1.2%
- Retail spaces: -0.92%
Returns: where is it more profitable to invest
Average yields by property type in the first quarter of 2025:
| Property Type | Return |
| Apartments | 5.39% |
| Houses | 2.99% |
| Offices | 5.59% |
| Warehouses | 4.23% |
| Shops | 5.78% |
| Holiday apartments | 5.76% |
| Holiday homes | 2.79% |
As seen, commercial premises, offices, and holiday apartments remain the most attractive in terms of profitability.
Thus, the Cypriot real estate market in Q1 2025 demonstrates confident growth in both prices and rental rates.
Larnaca stands out in particular — a region that combines dynamic development, investment appeal, and high demand from foreign buyers.
Whether you are considering a purchase for personal residence, obtaining residency, or as an investment tool — now is a favorable time to act.
The Feod Group team is ready to be your legal partner every step of the way!
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