Larnaca led Cyprus’ property market during the second quarter of 2026, recording the strongest growth in apartments and offices, while also posting gains in houses and warehouses.

The latest index from RICS and KPMG showed that prices moved higher across most districts and property categories.

“During the second quarter of 2026, the Cyprus’ property market continued to demonstrate resilience, with positive price movements recorded across most districts and asset categories,” said Christophoros Anayiotos, KPMG board member and head of the real estate industry group.

“Apartments remained the strongest-performing asset class, showing growth across all major districts, with Larnaca leading the market,” Anayiotos added, turning to residential property.

“Housing values also recorded positive gains, particularly in Larnaca and Paphos, reflecting continued demand in the residential sector,” he said at the same time.

Commercial properties also moved higher, although growth remained more restrained.

“Offices registered moderate increases, with the strongest growth observed in Larnaca, while warehouses continued their positive course, supported by notable gains in Larnaca and Paphos,” Anayiotos said.

However, retail continued to trail the rest of the market.

“Retail properties remained the weakest-performing asset class, recording only modest growth in most districts and a slight decline in Famagusta, indicating that demand in this segment continues to lag behind other sectors,” Anayiotos said.

“Rental values maintained their upward trend, with apartments posting the strongest annual increases, followed by holiday assets and houses,” he said, moving to the rental market.

Moreover, tourism-related properties continued to perform positively.

“The holiday property sector continued to present a positive picture, with holiday apartments outperforming holiday houses, emphasising the ongoing strength of Cyprus’ tourism market,” Anayiotos added.

“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, albeit Retail which remains the least favoured asset class,” Anayiotos said overall.

“The Cypriot economy continues to demonstrate considerable resilience in the face of the ongoing geopolitical challenges,” RICS chief economist Simon Rubinsohn said for his part.

“The latest results from the RICS Cyprus Property Price Index with KPMG in Cyprus demonstrate this clearly with concerns about the impact on the tourist industry in particular failing to be realised as holiday related assets continue to move upwards in pricing,” Rubinsohn added.

In addition, the commercial property market showed signs of improvement following a weaker start to the year.

“Another indication that the commercial real estate sector is holding up is provided by the RICS Cyprus Commercial Property Monitor which shows a modest improvement in sentiment in recent months and overseas investment enquiries picking up after a softer first quarter,” Rubinsohn said.