Rental prices are continuing their upward trajector while yields in the majority of property categories remain elevated.
According to the RICS Cyprus Property Price Index with KPMG in Cyprus for the second quarter of 2026, apartments dominate, recording an annual increase in rental prices of 7.36%, with holiday apartments following at 6.43%.
Rental prices for residential properties (houses) increased annually by 5.30%, for holiday homes by 5.19%, while office rental prices increased by 4%. Smaller annual increases were recorded for warehouse rents (1.96%) and commercial properties (1.22%).
How much do real estate properties yield?
Based on the results of the 'RICS Cyprus Property Price Index with KPMG in Cyprus' for the second quarter of 2026, the highest annual return is recorded by holiday apartments (5.82%), up from 5.75% in the second quarter of 2025.
This is followed by commercial properties (stores) with a return of 5.78% compared to 5.75% and offices, with a return of 5.63% compared to 5.61%.
Returns on apartments are also strong, and they continue to be a profitable investment option. Specifically, the return on apartments in the second quarter of 2026 was 5.51% compared to 5.41% in the corresponding quarter of last year.
The return on warehouses amounted to 4.15%, marginally down from 4.24%, while the increase in the return on residential properties (3.01% from 2.97%) and holiday homes (2.85% from 2.79%) was negligible.
(Source: InBusinessNews)
