Larnaca leads Cyprus property market growth in second quarter of 2026

Larnaca, Cyprus. 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.

Demand for residential and holiday properties remained firm, according to the latest RICS and KPMG in Cyprus index.

Larnaca records strongest quarterly gains

Apartment values in Larnaca increased by 5.59 per cent from the previous quarter, the largest rise among the property categories and districts covered by the index.

House prices rose by 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 ahead of other districts and reflected the wider strength of Cyprus’ residential market.

Island-wide annual performance

Across Cyprus, apartment values increased by 5.42 per cent year on year, making them the strongest-performing property category.

Warehouse values rose by 4.22 per cent annually, followed by houses at 4.04 per cent and offices at 3.69 per cent.

Retail property remained the weakest segment, with values increasing by 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”. He said gains in house values, particularly in Larnaca and Paphos, reflected continued residential demand.

Residential market comparisons

Outside Larnaca, apartment values increased by 2.04 per cent in Limassol, 1.94 per cent in Paphos and 0.79 per cent in Famagusta. Apartment values in Nicosia remained unchanged.

For houses, Paphos recorded the second-largest quarterly increase at 2.22 per cent, followed by Limassol at 1.78 per cent and Famagusta at 0.41 per cent. House values in Nicosia were unchanged.

Commercial property trends

Commercial property performance was more mixed, although Larnaca remained the leading district.

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.

Warehouse prices rose by 2.38 per cent in Paphos, 1.44 per cent in Limassol and 0.89 per cent in Nicosia. Warehouse values remained unchanged in Famagusta.