After all votes were counted, Chief Returning Officer Costas Constantinou announced that DISY garnered 27.77 percent of the vote, a loss of 2.9 percentage points compared to the 2016 election. The loss was much smaller than predicted by opinion polls.
The party is projected to retain its 18 seats, and possibly increase them by one, in the 56-member legislative chamber.
In second place was the left-wing Progressive Party of Working People (AKEL), with 22.32 percent of the vote, suffering an unexpected loss of 3.3 percentage points compared with the 2016 election.
AKEL Secretary-General Antros Kyprianou, surrounded by gloomy-looking party officials, said in a statement to journalists who gathered at his party's headquarters that the election result was not what the party expected.
"We were not able to convince the voters," he said.
The party had already lost 7 percent in 2016 over the previous election in 2011.
The elections were contested by 15 parties, which together fielded over 650 candidates. Both figures hit record highs.
Under the country's presidential system of administration, the ruling party's lack of an absolute majority in parliament does not affect government stability.
However, the government of President Nicos Anastasiades will have to seek alliances with smaller parties to push through crucial legislation needed to help the economy recover from the coronavirus pandemic.
