Cyprus’ real estate landscape showcased its resilient nature in the third quarter of 2025, as evidenced by the latest RICS Cyprus Property Price Index, produced in collaboration with KPMG Cyprus. The report details a robust growth in the residential sector, contrasted with a more cautious performance in commercial assets.
Residential Strength Versus Commercial Caution
According to KPMG Cyprus, modest price gains across multiple property segments underline the market’s stability amid regional and global economic uncertainties. Limassol led the charge, registering substantial gains in both warehouse facilities and apartment developments. Meanwhile, markets in Nicosia, Paphos, and Famagusta experienced moderate growth, primarily in residential properties, while Larnaca remained largely static except for a minor increase in office values.
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Insights From Industry Leaders
Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group at KPMG Cyprus, emphasized that apartments and houses have been the standout performers in terms of year-on-year price appreciation. However, retail properties have struggled to keep pace, reflecting a broader shift toward residential investment. Simon Rubinsohn, Chief Economist at RICS, reinforced this narrative by noting that solid economic fundamentals—marked by steady economic growth, record-high employment, and subdued inflation—continue to underpin the market dynamics. Furthermore, the booming tourism sector, with its record summer arrivals, remains a critical growth driver.
Sector Performance And Future Trends
The Q3 2025 data reveals that warehouses and apartments not only led the quarterly gains but also have historically remained resilient compared to other asset classes. The declining trend in retail property values underscores the importance of strategic asset selection in today’s market. Additionally, holiday properties, particularly apartments, benefited significantly from the robust tourism sector, making them some of the strongest performers in the region.
Conclusion
In conclusion, the Q3 report paints a clear picture: while Cyprus’ residential sector, especially apartments, continues to drive market growth, commercial real estate is witnessing more tempered expansion. These insights offer valuable guidance for investors and real estate professionals navigating a complex economic landscape. For a comprehensive analysis, readers are encouraged to review the full report on the RICS website.
