Cyprus’s office property market remained active and well-priced throughout 2025, according to the 2025 property market report published by Danos International Property Consultants & Valuers, with demand expected to remain strong across key cities into 2026.
Limassol established itself as the most sought-after business location, commanding the highest average office rents in Cyprus at approximately €29 per square metre per month. The city continued to attract both domestic and international investors, consolidating its position as the country’s leading commercial hub.
Nicosia recorded the largest number of office transactions, including some of the biggest office sales recently, and offered the widest range of available space. The capital drew significant interest across a broad spectrum of office types and price points.
Paphos and Larnaca recorded stable demand at more moderate price levels, maintaining steady activity without the premium pricing seen in the two larger cities.
Growing interest from EU and Middle East buyers supported higher demand and upward price pressure in key urban and coastal areas. New development in prime locations remained limited, tightening competition and pushing prices higher in the most sought-after areas. A more flexible licensing system, introduced to simplify planning approvals, is expected to potentially accelerate construction projects and ease supply constraints in the period ahead.
The report expects the office sector’s positive momentum to carry into 2026, underpinned by continued interest from international companies and broader economic stability. Prices in prime areas are forecast to rise further, though overall market conditions are projected to remain balanced by year end.
On the warehouse market, national supply remains limited but stable at levels similar to early 2025. Limassol accounts for the largest share of available warehouse space at approximately 47%, followed by Nicosia at around 33% and Larnaca at approximately 20%. The national average warehouse rent stands at around €5 per square metre per month. Limassol commands the highest rents at €7 per square metre, reflecting the persistent demand generated by its role as Cyprus’s main port and its centrality to logistics and distribution operations. Nicosia averages €5 per square metre, while Larnaca remains the most affordable market at €3 per square metre.
In the residential sector, the second half of 2025 saw diverging trends across property types. Overall prices rose approximately 5% year-on-year to the third quarter of 2025, with apartment prices as the primary driver; house price increases were more moderate by comparison. Larnaca recorded the strongest residential price growth among the districts, supported by ongoing development activity and growing buyer interest, with Famagusta district also posting moderate gains.
Limassol and Paphos recorded more restrained improvements, while Nicosia remained the most stable market with only marginal price changes.
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