Limassol maintains its status as a key hub for premium residential real estate in Cyprus, combining a wide selection of properties with high average prices. According to Landbank Analytics, Limassol offers the largest number of apartments and houses for rent on the island, while average rental rates remain the highest in the country.
In July 2025, there were 1,013 apartments available for rent in Limassol, making it the district with the highest supply. Average rents in Limassol are the highest in Cyprus and increase with the number of bedrooms: one-bedroom apartments – €1,651, two-bedroom apartments – €2,574, three-bedroom apartments – €3,812, four-bedroom apartments – €7,224, and five-bedroom apartments – €7,750 .
An analysis of the house rental market reveals a similar trend: the greatest demand is for four- and five-bedroom homes, with average rents reaching €5,933 and €8,431, respectively. Two-bedroom homes are the least available, with an average rent of € 2,119. However, the supply of three-bedroom apartments is increasing, with an average monthly rent of € 3,286. Six-bedroom homes are also available, with rents starting at around €9,955 per month, confirming price increases depending on property size.
Construction does not compensate for the deficit
Although construction activity is noticeable throughout the city, only a small fraction of new projects enter the long-term rental market. A significant number of properties are sold to investors during the construction phase or converted to short-term rentals and mixed-use developments.
Even taking into account seasonal adjustments, which have shown a slight decline of 1.9% in recent months, the pressure on the market remains systemic. This points to a structural imbalance rather than temporary fluctuations.
As a result, Limassol continues to lead in rental prices across virtually all segments, widening the gap with other areas of the country.
Support measures and development of affordable rentals
To stabilize the market, a number of programs are being implemented to increase the supply of affordable residential real estate. One key mechanism is the introduction of a reduced-rental scheme, which allows developers to obtain additional building density in exchange for providing properties at below-market prices.
Joint municipal partnership projects and the Cyprus Land Development Organization ( KOAG ) have also been intensified. Construction of new residential complexes aimed at long-term residences continues in Limassol and Nicosia.
Within the framework of these programs, around 600 facilities are planned to be built in the Agios districts of Limassol alone. Nikolaos and Agios Ioannis: Rental rates in these projects will be 25-30% below the market average, which will allow the new space to be used directly to support residents rather than attract investment demand.
Government programs and public demand
Interest in government initiatives remains high. By August, 525 applications had been submitted by young families, of which 152 were approved for funding totaling €5.4 million.
The Build-to-Rent programme also demonstrated strong demand: out of 43 applications, 28 were approved, providing €727,000 in subsidies.
Koag plans to open more than 135 properties for sale and 36 for rent in 2025, and 96 for sale and 156 for rent in 2026. Additional phases are under consideration.
Additional incentives, including a bonus for building density ranging from 25 to 45%, are aimed at ensuring that new construction does not become solely an investment product, but rather supports the market for long-term residential properties.
