Residential Demand Remains A Key Support
Residential property values continued to rise, with Larnaca and Paphos recording some of the strongest gains. Holiday properties also remained positive, with apartments outperforming holiday houses as demand for tourism-linked real estate continued.
“Housing values also recorded positive gains, particularly in Larnaca and Paphos, reflecting continued demand in the residential sector,” Anayiotos said.
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Commercial Property Shows Mixed Performance
Commercial real estate recorded more moderate gains during the quarter. Office values increased most strongly in Larnaca, while warehouse prices also rose, supported by gains in Larnaca and Paphos.
Retail remained the weakest-performing segment. Growth was modest across most districts, while Famagusta recorded a slight decline.
Rents Continue To Rise
Rental values increased during the quarter, led by apartments, followed by holiday properties and houses. The gains point to continued demand for rental housing as supply remains constrained in some parts of the market.
“The second quarter reflects a stable and healthy market environment, underpinned by sustained demand for residential and holiday assets, while commercial properties continue to show selective growth,” Anayiotos said.
Geopolitical Risks Have Not Weakened Property Demand
RICS chief economist Simon Rubinsohn said Cyprus’ property market has remained resilient despite geopolitical uncertainty. He added that concerns about the potential impact on tourism have not translated into weaker prices for holiday-related properties.
“The Cypriot economy continues to demonstrate considerable resilience in the face of the ongoing geopolitical challenges,” Rubinsohn said.
Commercial property sentiment has also improved after a weaker start to the year, according to Rubinsohn. Overseas investment enquiries have begun to recover, while the RICS Cyprus Commercial Property Monitor recorded a modest improvement in sentiment in recent months.







