Larnaca recorded Cyprus’ strongest quarterly property gains in the second quarter of 2026, leading across apartments, houses, offices and warehouses as residential and holiday-home demand remained resilient.

Larnaca Leads Across Major Property Segments

Apartment values in Larnaca rose 5.59% from the previous quarter, according to the latest RICS and KPMG in Cyprus index. House values increased 4.48%, while offices and warehouses gained 3.63% and 3.39%, respectively.

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Across Cyprus, apartment values rose 5.42% year on year, making them the strongest-performing asset class. Warehouses gained 4.22%, houses 4.04% and offices 3.69%, while retail values increased just 0.66%.

Christophoros Anayiotos, a board member at KPMG Cyprus and head of its real estate industry group, described apartments as “the strongest-performing asset class.” He said gains in house values, particularly in Larnaca and Paphos, reflected continued residential demand.

Larnaca Outpaces Other Districts

Apartment values rose 2.04% in Limassol, 1.94% in Paphos and 0.79% in Famagusta, while Nicosia was unchanged. Paphos posted the second-largest quarterly increase in house values at 2.22%, followed by Limassol at 1.78% and Famagusta at 0.41%, with Nicosia again unchanged.

Larnaca also led commercial property. Office values rose 1.50% in Limassol, 0.71% in Paphos and 0.63% in Nicosia, while Famagusta was unchanged. Warehouse values increased 2.38% in Paphos, 1.44% in Limassol and 0.89% in Nicosia, with no change in Famagusta.

Retail remained the weakest category. Paphos led with a 1.08% quarterly increase, followed by Limassol at 0.84% and Larnaca at 0.30%. Nicosia was unchanged, and Famagusta declined 0.12%.

Anayiotos said offices had recorded moderate gains led by Larnaca, while warehouse values benefited from increases in Larnaca and Paphos. Retail remained “the weakest-performing asset class,” he said.

Holiday Homes Continue To Gain

Holiday properties also benefited from demand linked to Cyprus’ tourism sector. Nationally, holiday apartment prices rose 5.18% year on year, compared with 3.01% for holiday houses. Larnaca recorded the strongest quarterly gains, with holiday apartment prices rising 3.85% and holiday house values increasing 3.1%. Paphos followed for holiday apartments at 2.52%, ahead of Limassol at 1.73% and Famagusta at 0.63%.

For holiday houses, Famagusta recorded the second-largest increase at 1.39%, followed by Paphos at 1.11% and Limassol at 0.36%.

RICS chief economist Simon Rubinsohn said concerns that geopolitical developments would hurt Cyprus’ tourism industry had not materialized, with holiday property prices continuing to rise. He also pointed to “a modest improvement in sentiment in recent months” in commercial real estate and stronger overseas investment enquiries after a weaker first quarter.

Rents Rise While Yields Hold Steady

Apartment rents increased 7.36% year on year, while holiday apartment rents rose 6.43%. House and holiday house rents increased 5.3% and 5.19%, respectively, while office, warehouse and retail rents gained 4%, 1.96% and 1.22%.

Despite higher rents, yields remained broadly unchanged from a year earlier. Holiday apartments offered the highest yield at 5.82%, followed by retail at 5.78% and offices at 5.63%.

Apartment yields stood at 5.51%, warehouses at 4.15%, houses at 3.01% and holiday houses at 2.85%.