Holiday Properties in Cyprus: Why They’re Outperforming Traditional Segments in 2025

By Jose Longo


The Rise of Holiday Properties in Cyprus

Cyprus has always attracted international buyers — but the 2025 RICS–KPMG Property Index confirms something much bigger:

Holiday properties are outperforming the entire market.

Across Q1, Q2, and Q3 of 2025, holiday homes — both apartments and houses — consistently recorded stronger year-on-year price growth than traditional residential properties. While other segments showed volatility, holiday assets demonstrated resilience, demand, and superior rental performance.

For investors, this makes holiday properties one of the most compelling real estate opportunities on the island today.


📊 1. Holiday Properties Show Stronger and More Consistent Price Growth

Across all three quarterly reports, holiday apartments and holiday houses delivered steady year-on-year increases, with no negative quarters.


Holiday Apartments (Q1–Q3 2025):

  • Q1: Positive YoY growth
  • Q2: Continued price increases
  • Q3: Strong YoY appreciation
  • Holiday apartments were the most consistently growing sub-category in the entire residential market.


Holiday Houses (Q1–Q3 2025):

  • Also recorded stable YoY gains every quarter
  • Outperformed traditional houses in most regions
  • Showed lower volatility and stronger demand resilience

In contrast, some traditional residential categories — especially houses — posted weaker or inconsistent growth.

Investors are shifting capital toward holiday units because they deliver both price appreciation and rental income upside.


🌅 2. Tourism Recovery Continues to Fuel Demand

Cyprus tourism surged in 2024 and continued into 2025. This directly drives demand for holiday homes.

Key demand drivers:

  • Record international arrivals
  • Longer tourist stays
  • Increase in repeat visitors
  • Higher off-season occupancy
  • Remote workers choosing Cyprus as a long-term base

More tourism → more demand for holiday rentals → more pressure on sale prices.

This effect is visible in all three quarterly indexes.


💶 3. Higher Rental Yields Make Holiday Properties More Attractive

Holiday properties typically deliver higher short-term rental yields than traditional residential units.

Why?

  • Daily rates can be 3–5× higher than long-term rents
  • Coastal demand remains strong
  • Off-season digital nomad demand boosts occupancy
  • Limited supply in prime resort areas pushes prices up

In Q2 and Q3, rental values for holiday homes increased faster than many traditional categories — signaling strong investor interest and tenant demand.


📍 4. Best-Performing Regions for Holiday Properties (2025 Data)

The reports highlight several standout locations:


Paphos

  • One of the strongest holiday home markets
  • Stable YoY growth across all categories
  • High tourist inflows + foreign buyer interest


Famagusta

  • Strong rental yields
  • Consistent Q1–Q3 price growth
  • Popular for beachfront holiday apartments


Larnaca

 (The Rising Star)

  • Recorded some of the highest growth rates across multiple quarters
  • Rapid infrastructure improvement
  • Increasing international buyer demand
  • Becoming a new hotspot for holiday investments


Together, these regions provide a mix of appreciation potential and reliable rental income.


🏢 5. Why Holiday Properties Outperform Traditional Residential Units

Holiday homes benefit from macroeconomic and lifestyle shifts:


✔ Strong tourism demand

Year-round arrivals and off-season visitors boost occupancy.


✔ Supply shortage in prime coastal areas

Zoning + limited land keep supply tight.


✔ Appeal to foreign investors

Many international buyers prefer coastal holiday units over inland homes.


✔ Diversified income potential

Short-term, mid-term, and long-term rental options.


✔ Price resilience even during market slowdowns

Holiday units had zero negative YoY quarters in Q1–Q3 2025 — a standout metric.


These factors create a market segment that performs more like a premium asset than a traditional residential one.


🧭 6. Investor Takeaway: Holiday Properties Are the Standout Opportunity of 2025

Across all three RICS–KPMG quarterly reports, one trend is unmistakable:

Holiday properties are the most consistent and resilient performers in the Cyprus real estate market.

They offer:

  • Strong year-on-year price growth
  • High rental demand
  • Superior yields
  • Broad international appeal
  • Lower volatility
  • Attractive long-term potential


For investors seeking stable performance and reliable returns, holiday properties stand out as the top opportunity in Cyprus for 2025.


👉 Ready to Explore Holiday Investment Opportunities in Cyprus?

We help investors identify high-growth locations, analyze rental yield potential, and source the best off-market and new-development opportunities.

Contact us today to receive a curated list of holiday properties in Cyprus.