Market Summary
The Q1 2026 RICS–KPMG Cyprus Real Estate Index shows a market characterised by stability, marginal price growth, and continued resilience across most property categories. Residential assets, particularly apartments, remain the strongest performers, while retail continues to lag behind other sectors.
🏡 Residential Property Market
Apartments
- Best‑performing asset class in Q1 2026.
- Year‑on‑year: Apartments outperformed all other sectors.
- Quarter‑on‑quarter: Small increases, with Paphos and Famagusta showing the strongest gains.
- Limassol and Nicosia recorded more modest uplifts.
Houses
- Selective quarterly increases, mainly in Famagusta and Limassol.
- Other districts showed minor or no movement.
- Houses remain a stable but slower‑growing segment compared to apartments.
🏢 Commercial Property Market
Offices
- Slight quarterly increases in some districts.
- Year‑on‑year: Modest positive growth.
- Demand remains focused on quality, central business district stock.
Retail
- Continues to be the weakest performer.
- Values largely flat, with small increases in Limassol and Famagusta and a slight decline in Paphos.
Warehouses / Industrial
- Stable with minor movements in Nicosia and Paphos.
- Year‑on‑year: Warehouses performed better than retail but below residential.
🏖 Holiday Properties
Holiday‑oriented real estate continues to show positive momentum, supported by strong tourism fundamentals.
Holiday Apartments
- Stronger performance than holiday houses.
- Famagusta recorded the highest quarterly increase.
- Paphos saw marginal gains; Larnaca remained flat.
Holiday Houses
- Modest quarterly increases, with Limassol leading.
- Overall trend remains positive but slower than holiday apartments.
📈 Yields (2025 Q1 → 2026 Q1)
Yields remained broadly stable across all asset classes:
| Asset Type | 2025 Q1 | 2026 Q1 |
| Apartments | 5.39% | 5.44% |
| Houses | 2.99% | 2.97% |
| Retail | 5.78% | 5.77% |
| Warehouse | 4.23% | 4.20% |
| Office | 5.59% | 5.60% |
| Holiday Apartments | 5.76% | 5.67% |
| Holiday Houses | 2.79% | 2.80% |
Key takeaway: Yields remain stable and attractive, particularly for apartments, offices, retail, and holiday apartments.
🔍 Overall Market Outlook
The Q1 2026 Index reflects a steady, low‑volatility market with:
- Consistent demand for residential and holiday properties
- Stable yields across all sectors
- Modest but positive price movements
- Retail continuing to underperform
- Strongest momentum in apartments and holiday apartments
The data reinforces Cyprus’ position as a resilient, income‑generating real estate market, particularly for investors targeting residential and tourism‑driven assets.
📄 Read the Full Report
If you would like to read the report in full, you can find it here: https://www.rics.org/content/dam/ricsglobal/documents/market-surveys/RICS-KPMG-Cyprus-Real-Estate-Index-Q1-2026.pdf
Join The Discussion