Rising rents show no sign of stopping in Cyprus. Despite government actions and announced measures aimed at strengthening the housing stock, the trend for the third quarter of 2025 continued upward.
Simultaneously, the President of the Republic noted that the government is continuing reforms to further develop the real estate market and the wider economy, as well as to attract investors. Particular emphasis is being placed on reducing time-consuming procedures, especially in licensing, and strengthening control mechanisms.
Rents jump nearly 5%
KPMG Cyprus published the results of the “RICS Cyprus Property Price Index with KPMG in Cyprus” for the third quarter of 2025 yesterday.
Analysing the results on behalf of KPMG Cyprus, Christophoros Anayiotos, Board Member and Head of Real Estate and Land Development, stated that rental prices increased slightly, with apartments leading and houses following.
Specifically, the KPMG Cyprus data showed that apartment rents rose by 4.78% in the third quarter of 2025 compared to the corresponding period last year. Houses were in second place, with the increase in rents standing at 2.22%. The smallest increase was recorded in commercial properties at 0.54%.
Warehouse and office values rise sharply
Beyond rental prices, the report noted a significant increase in the values of warehouses and offices. Specifically, during the third quarter of 2025, apartment values recorded a 4.50% increase compared to the same period last year, and house values rose by 4.11%.
Warehouse values recorded a 3.69% increase, followed by offices, whose value increase reached 3.09%.
In conclusion, Christophoros Anayiotos said that “during the third quarter of 2025, the Cypriot real estate market showed variations in values by category and district.”
Limassol stood out with a significant increase in the value of warehouses and apartments, while Nicosia, Paphos, and Famagusta showed stable trends with small increases in the values of residential properties.
Properties in Larnaca did not show changes, with the exception of a small rise in office values. On an annual basis, apartments and houses recorded the largest increases, while retail properties (shops) showed negative interest. Overall, the third quarter presents a resilient picture for the residential sector, while commercial properties show a more restrained picture, suggesting a cautious but stable course for the market.
President details reform agenda
Meanwhile, the President of the Republic, speaking yesterday at the annual General Assembly of the Association of Large Investment Projects, pointed out that “in recent years, we have been promoting a series of targeted infrastructure projects and reforms, with the ultimate goal of further strengthening the competitiveness and resilience of our country’s economy and business environment.”
The President added that their goal is to provide modernised services that both facilitate the work of entrepreneurs and strengthen the country’s competitiveness and business activity. This includes the operation of the Business Service Centre, which opened a few months ago.
He stated that by concentrating the expertise of the competent state services under one roof, they achieve a more effective, coordinated, and immediate service for Cypriot and foreign investors, based on their business needs. He added that, within the framework of the major licensing reform, the practice of examining applications for large and strategic developments through fast-track procedures, which do not exceed 12 months, is continuing. Simultaneously, to ensure quality, legality, and transparency in the execution of projects, they are proceeding with the establishment of a control and enforcement unit within the Town Planning Department in 2026.
At the General Assembly, Association President Andreas Demetriades stressed that the alignment of the public and private sectors is crucial. He mentioned the role of economic diplomacy, the benefits of Cyprus joining the Schengen zone, and expressed the Association’s satisfaction with the passing of the bill to create the National Mechanism for the Control of Foreign Direct Investments.
Demetriades also highlighted the need to effectively address the lack of infrastructure and affordable housing in Cyprus, as well as the importance of adopting a cohesive and long-term energy strategy due to the high cost of electricity for households and businesses.
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