Cyprus Rental Market in 2026: Trends and Forecasts

## Introduction
After dynamic growth in 2022-2023, Cyprus's rental market in 2026 shows stabilization and gradual balancing between supply and demand.
## Rental Rate Dynamics
**Average Annual Rates (2026):**
- Limassol: Studio €900/month, 1BR €1,200, 2BR €1,600, 3BR €2,200
- Nicosia: Studio €600/month, 1BR €800, 2BR €1,100, 3BR €1,500
- Paphos: Studio €500/month, 1BR €700, 2BR €950, 3BR €1,400
- Larnaca: Studio €550/month, 1BR €750, 2BR €1,000, 3BR €1,350
**Annual Growth 2025-2026:** Limassol +2.5%, Other cities +1-2%
## Market Trends
**Supply:** 2,400 new rental apartments in 2025-2026, with 60% in Limassol/Larnaca
**Demand:** Foreign professionals, students, temporary residents (pre-purchase)
**Contract Duration:** 1-year standard, 2-year for families
## Investor Outlook
**Rental Yield:** Limassol 5-6%, Nicosia/Paphos 6-7%, Larnaca 6.5-7.5%
**Best Options:** 1-2BR near business centers, universities, coast
**Occupancy:** 90-95% year-round in major cities
Stable market ideal for passive income.