Rent Increases in Cyprus Accelerate: What the Third Quarter of 2025 Reveals

Lately it feels like rental prices in Cyprus just keep climbing… and the numbers for the third quarter of 2025 only reinforce what many have been sensing for months. Despite government measures and attempts to strengthen the country’s housing stock, the trend continues upward - and quite confidently too.

Fresh data came from KPMG Cyprus, which released the latest RICS Cyprus Property Price Index. According to Christophoros Anayiotos, Head of Real Estate and Land Development, rental prices rose across almost all categories, with apartments leading the increase.

Apartment rents were up 4,78%, houses followed with 2,22%, while commercial properties showed a marginal rise of 0,54%. But looking deeper, another shift becomes obvious: warehouse and office values recorded some of the strongest increases. On an annual basis, apartment prices rose by 4,50%, house prices by 4,11%, warehouses by 3,69%, and offices by 3,09%.

One region stood out: Limassol, where both warehouse and apartment values saw a notable jump. Nicosia, Paphos, and Famagusta remained relatively steady, showing small increases in the residential sector. Larnaca was stable as well, aside from a slight rise in office values. Apartments and houses continued to drive growth overall, while retail properties showed a negative trend. Residential real estate remains resilient, while the commercial sector appears more cautious but stable.

Meanwhile, the President of the Republic noted that the government is moving ahead with reforms aimed at strengthening the Cyprus real estate market, speeding up procedures, and improving services for investors. A key priority is reducing licensing delays and reinforcing oversight mechanisms. One of the major steps is the operation of the Business Service Centre, which brings multiple government services under one roof to better assist both local and foreign investors.

The President also emphasized that large development applications continue to be processed under a fast-track system that does not exceed 12 months. And in 2026, a new control and enforcement unit will be created within the Town Planning Department to ensure transparency, legality, and construction quality.

At the General Assembly, the President of the Association of Large Investment Projects, Andreas Demetriades, stressed the importance of alignment between the public and private sectors. He highlighted the role of economic diplomacy, the potential benefits of Cyprus joining the Schengen zone, and the significance of creating the National Mechanism for the Control of Foreign Direct Investments. He also underlined the urgent need to address infrastructure shortages, the lack of affordable housing, and the necessity of a long-term energy strategy, given the high cost of electricity for households and businesses.

The market keeps moving forward — sometimes quickly, sometimes with caution — but the overall direction remains clear: Cyprus real estate, especially in Limassol, continues to show resilience and remains an attractive destination for investors and home buyers.