Larnaca strengthened its position as Cyprus’ fastest-growing property market in the second quarter of 2026, leading quarterly gains in apartments, houses, offices and warehouses as demand for residential and holiday properties remained firm. 

The clearest increase was recorded in apartments, whose values in the district climbed by 5.59 per cent from the previous quarter, according to the latest index from RICS and KPMG in Cyprus. House prices followed with a rise of 4.48 per cent, while office and warehouse values increased by 3.63 per cent and 3.39 per cent respectively. 

The figures placed Larnaca well ahead of the other districts and reflected the wider strength of Cyprus’ residential market. 

Across the island, apartment values increased by 5.42 per cent year on year, making them the strongest-performing property category. Warehouses followed with an annual rise of 4.22 per cent, ahead of houses at 4.04 per cent and offices at 3.69 per cent. 

Retail remained the weakest part of the market, with values increasing by just 0.66 per cent from a year earlier. 

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

However, the difference between Larnaca and the rest of the island was considerable. Apartment values rose by 2.04 per cent in Limassol, 1.94 per cent in Paphos and 0.79 per cent in Famagusta, while remaining unchanged in Nicosia. 

A similar pattern emerged for houses. Paphos recorded the second-strongest quarterly increase at 2.22 per cent, followed by Limassol at 1.78 per cent and Famagusta at 0.41 per cent. Once again, values in Nicosia were unchanged. 

Commercial property recorded a more mixed performance, although Larnaca continued to lead. Office values increased by 1.50 per cent in Limassol, 0.71 per cent in Paphos and 0.63 per cent in Nicosia, while Famagusta recorded no change. 

Meanwhile, warehouse prices rose by 2.38 per cent in Paphos, 1.44 per cent in Limassol and 0.89 per cent in Nicosia. They remained unchanged in Famagusta. 

Retail continued to lag behind the other categories. Paphos recorded the strongest quarterly increase at 1.08 per cent, followed by Limassol at 0.84 per cent and Larnaca at 0.30 per cent. Values were unchanged in Nicosia and declined by 0.12 per cent in Famagusta. 

Anayiotos said offices had registered moderate increases, led by Larnaca, while warehouse values had been supported by gains in Larnaca and Paphos. Retail, however, remained “the weakest-performing asset class”, with demand continuing to trail the rest of the market. 

Larnaca’s strength also extended to holiday properties, which continued to benefit from demand linked to Cyprus’ tourism market. 

Nationally, holiday apartment prices rose by 5.18 per cent year on year, outperforming holiday houses, where the corresponding increase stood at 3.01 per cent. 

On a quarterly basis, Larnaca again led by a wide margin. Holiday apartment prices increased by 3.85 per cent, while holiday house values rose by 3.1 per cent. 

Paphos followed with a 2.52 per cent increase in holiday apartment prices, ahead of Limassol at 1.73 per cent and Famagusta at 0.63 per cent. 

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

RICS chief economist Simon Rubinsohn said concerns that geopolitical developments would hurt Cyprus’ tourism industry had not materialised, with holiday property prices continuing to rise. 

He also pointed to signs of improvement in commercial property, saying the RICS Cyprus Commercial Property Monitor had shown “a modest improvement in sentiment in recent months”, together with stronger overseas investment enquiries after a weaker first quarter. 

The increase in property prices was accompanied by further growth in rents, particularly for apartments, where rental values climbed by 7.36 per cent year on year. 

Holiday apartment rents rose by 6.43 per cent, while rents for houses and holiday houses increased by 5.3 per cent and 5.19 per cent respectively. Office rents were up by 4 per cent, followed by warehouses at 1.96 per cent and retail properties at 1.22 per cent. 

Despite the rise in rents, yields remained broadly unchanged from a year earlier. Holiday apartments offered the highest yield at 5.82 per cent, narrowly ahead of retail properties at 5.78 per cent and offices at 5.63 per cent. 

Finally, apartment yields stood at 5.51 per cent, while warehouses generated 4.15 per cent. Houses and holiday houses remained at the lower end of the market, with yields of 3.01 per cent and 2.85 per cent respectively.