The development of the city of Larnaca continues unabated, as evidenced by the numbers and statistics, which are published at regular intervals. (a) The infrastructure and development projects that are being implemented, (b) the increased interest - both investment and purchasing - in the real estate sector, (c) the strengthening of the tourist flow, (d) the promoted development for the port and the marina of the city and (e) the effort to strengthen new sectors such as Education, are some of the reasons that highlight Larnaca as the new hot spot, of the country.
Yesterday, the property value index issued quarterly by RICS and KPMG Cyprus (RICS Cyprus Property Price Index with KPMG in Cyprus) was published with a reference time of the second quarter of 2026. The data of the index strengthen the picture in relation to the development of the city. Analysing the data on behalf of KPMG Cyprus, Christoforos Anagiotos, Managing Director and Head of the Real Estate and Land Development Sector, noted, among other things, that in the second quarter of 2026, the real estate market in Cyprus continued to show resilience, with positive changes in values recorded in most provinces and property categories.
At the top
The individual elements are what bring Larnaca to the top of the industry's development, as almost all real estate categories show the city leading in numbers. It is noted that apartments remained the category with the strongest performance, showing growth in all provinces, with Larnaca leading the market. Additionally, housing also recorded positive increases, particularly in Larnaca and Paphos, reflecting continued demand in the residential sector. Offices recorded modest increases, with the largest increase observed in Larnaca, while warehouses continued their positive course, with increases in Larnaca and Paphos. Shops remained the category with the least demand.
In addition to the above, the RICS / KPMG Cyprus index shows that rental values maintained their upward trend, with apartments recording the largest annual increases, followed by holiday properties and residences. The holiday real estate sector continued to show a positive picture, with holiday apartments outperforming holiday homes, highlighting the ongoing momentum of the tourism market. Overall, it is pointed out, the second quarter reflects a stable and healthy market, which is supported by the continued demand for residential and holiday properties, while commercial real estate continues to show limited but steady growth, with the exception of shops, which remain the category of real estate with the least investment preference.
Vote of confidence in tourism
In the meantime, another important element, which emerges from the results of the value index, is the support and vote of confidence provided by the real estate sector to tourism. As is well known, the tourism industry suffered a blow due to the geopolitical turmoil in the region, however, after about a quarter, it seems to be returning to normality, showing remarkable resilience. In his statements, Simon Rubinsohn, RICS Chief Economist, underlines that the Cypriot economy continues to demonstrate significant resilience in the face of ongoing geopolitical challenges. The latest results of the RICS Cyprus Property Price Index in collaboration with KPMG in Cyprus clearly prove this, as concerns about the impact, especially on tourism, have not been verified, with tourist properties continuing their upward trend, he notes. After all, as Mr. Anagiotos has mentioned above, the holiday real estate sector continued to show a positive picture, highlighting the ongoing dynamics of the tourism market.
