In situ, high-resolution, gamma-ray spectrometry of a total number of 70 outdoor and 20 indoor representative measurements were performed in preselected, common locations of the main urban areas of Cyprus. Specific activities and gamma absorbed dose rates in air due to the naturally occurring radionuclides of 232Th and 238U series, and 40K are determined and discussed. Effective dose rate to the Cyprus population due to terrestrial gamma radiation is derived directly from this work. The results obtained outdoors match very well with those derived previously by high-resolution gamma spectrometry of soil samples, which were collected from the main island bedrock surface. This implies that the construction and building materials in urban areas do not affect the external gamma dose rate; thus they are mostly of local origin. Finally, the indoor/outdoor gamma dose ratio was found to be 1.4 ± 0.5.