Cyprus real estate market remains stable despite external risks

The Cypriot real estate market demonstrated resilience and moderate growth in the first quarter of 2026, despite ongoing geopolitical tensions in the region. This is highlighted in a new report by KPMG Cyprus and the RICS Cyprus Property Index.

According to the study's data, the most notable growth was recorded in the apartment segment, particularly in Paphos and Famagusta. Growth also continued in Nicosia and Limassol, albeit at a more moderate pace. The residential real estate sector remains the main market driver.

The house segment showed a limited price increase, mainly in Limassol and Famagusta. The commercial real estate market proved to be more subdued: retail shops in most regions saw virtually no change in price, although a slight increase was noted in Limassol and Famagusta. In Paphos, conversely, a minor decline was recorded.

In the rental market, rates continued to rise, especially for apartments and office spaces. Meanwhile, retail shops remain the weakest segment with limited demand.

Christoforos Anayiotos, Managing Director of KPMG Cyprus, noted that the market remains stable, with residential properties and offices continuing to maintain positive dynamics.

At the same time, experts warn of potential risks. RICS Chief Economist Simon Rubinsohn stated that tensions in the Middle East are causing concern for Cyprus's energy and tourism sectors. According to him, while this has not yet had a direct impact on the property index, a prolonged crisis could affect the market in the future.

Analysts emphasize that the resilience of the Cypriot economy is currently helping to maintain the stability of the sector, despite international uncertainty.