Rising Rents — With a Few Surprises

According to a recent report by the Cyprus Mail, rental prices for standard apartments increased in most major Cypriot cities between 1 August and 1 October 2025.

We believe this data signals that the rental sector continues to show resilience, though with some caveats.

Here are the headline figures:

• Across the island’s four major cities, average rent for a “standard” apartment rose — the biggest gain being in Paphos, up 4.8% (from €1,178 to €1,234).
• In Nicosia the increase was more modest at 1.4% (from €1,008 to €1,022).
• In Limassol the overall average actually declined by 1.9% (from €1,969 to €1,931).
• In Larnaca there was a trivial rise of 0.1% (from €1,125 to €1,126). 

So, while the broad picture is upward, the range of outcomes suggests a more nuanced story. In our opinion, investors and landlords should treat these numbers as indicative of a stabilising market rather than a boom.

Apartment-Type Breakdown

More detailed data show that performance varied by apartment size and city:

In Nicosia:

• 1-bedroom units: €683 → €687 (+0.6%)
• 2-bed: €997 → €1,001 (+0.4%)
• 3-bed: €1,335 → €1,336 (+0.1%)

The slight decrease in available units from 1,705 to 1,693 suggests supply is tightening modestly.

In Limassol:

• 1-bed: €1,400 → €1,409 (+0.6%)
• 2-bed: €1,943 → €1,981 (+2.0%)
• 3-bed: €2,380 → €2,197 (-7.7%)

The drop in 3-bedroom rents is notable and we think may reflect shifting demand (perhaps fewer large families or more supply in that segment).

In Paphos:

• 1-bed: €887 → €882 (-0.6%)
• 2-bed: €1,126 → €1,207 (+7.2%)
• 3-bed: €1,468 → €1,511 (+2.9%)

In Larnaca:

• 1-bed: €878 → €882 (+0.5%)
• 2-bed: €1,136 → €1,163 (+2.4%)
• 3-bed: €1,313 → €1,256 (-4.3%)

We believe the size-based variances point to changing tenant preferences and possibly the impact of new supply in larger units — something landlords and agents should keep a close eye on.

What’s Driving These Trends?

In our professional view, several factors are likely influencing these results:

• Tourism & relocation demand: Cities with strong tourism appeal (like Paphos) appear to see stronger rental growth, likely reflecting influx of short-term or mid-term tenants driving up demand for 2- and 3-bed units.
• Supply dynamics: In Limassol, the drop in 3-bed rents could suggest an oversupply or decreasing ‘premium’ for larger units. The overall decrease in average rent there supports the notion of supply catching up to demand.
• Seasonality vs. trend: The reporting company noted that “current price changes may be seasonal in nature and may not reflect long-term market trends.” We therefore think it’s wise to treat these figures as early indicators rather than definitive forecasts.
• Market segmentation: The weaker growth (or even decline) in some cities and unit types suggests that market strength is uneven — location, unit size, furnishing, and tenant profile all matter more than ever.

Implications for Stakeholders

• For landlords: If you own a 2-bed unit in Paphos, you’re likely in a strong position now. If you have a large (3-bed) unit in Limassol, you might need to rethink pricing or positioning to stay competitive.
• For investors: We believe that rental yields remain attractive in certain segments, especially where demand is robust and supply constrained. However, one should be cautious in markets where rents are flattening or declining. For example, the slight average decline in Limassol hints that yield margins may be shrinking.
• For tenants: There remain opportunities for negotiation — especially in larger properties in cities where rents are declining. Tenants should shop around, compare recent trends, and consider longer-term leasing to lock in favourable rates.
• For agents & property managers: Market messaging must be granular. Blanket statements about “rentals rising everywhere” are no longer accurate. Distinguish by unit size, location, and city. Use the latest data to advise clients accurately.

The Cyprus rental market is not a monolith — yes, we see an overall uptrend in many places, but significant variation persists. We believe that one of the most important take-aways is the importance of fine-tuned local intelligence: city by city, unit by unit, the story can differ.

For the team at RealtyHub, this reinforces the value of having up-to-date listings, clear supply/demand analytics, and expert commentary for buyers, sellers, tenants, and agents alike.