Larnaca, Cyprus’s third‑largest city, is emerging to become the island’s new real estate hotspot.
As per Sotheby’s Insight Report, the first half of 2025 alone, the city recorded 823 residential transactions, and nearly a quarter of those properties were mid‑to‑high segment properties. Properties in this bracket showed a price increase of approximately 10.2 % between early 2024 and early 2025, yet homes here still cost less than comparable properties in other island cities.
The take‑away? Investors are getting in at an attractive price point, with room to grow.
Record-breaking sales and a surge of global buyers
March 2025 lit up the Cypriot property market like no other month in the past 17 years. Sales surged 19 % year‑on‑year, the strongest March performance since 2008. Larnaca didn’t just keep pace, it leapt ahead, recording a 21 % increase in transactions. The momentum is being fuelled by overseas appetite: international sales into Larnaca are up 22 %, and EU buyers in particular have more than doubled their presence, boosting purchases by 65 %. It’s a clear signal that global interest is shifting eastward. Driving much of this buzz is Cyprus’s Golden Visa, which grants permanent residency to non‑EU investors who acquire property worth at least €300,000, a powerful incentive that continues to draw buyers from across the continent.
Tourism: Fuel for rental yields
What keeps yields in Larnaca so robust? Tourism. The city welcomed around 350,000 visitors in the first quarter of 2025, a 12 % year‑on‑year increase. That influx feeds strong demand for short‑term rentals. The numbers reflect this: Cyprus’s average gross rental yield was 5.44 % for apartments and 2.97 % for houses in the first quarter of 2024. However, Larnaca’s rental index is above average with a gross ROI of 7.6 % for apartments and 5.3 % for houses, outpacing all but one other district.
In other words, investors can count on reliable income even as values appreciate.
Hotspots and Growth Areas
Where should investors look? Livadia is emerging as one of the city’s most promising growth areas, with new developments steadily reshaping the neighbourhood. Facilities and amenities are quickly being developed in this city's suburbs to meet the demand from the area residents. Larnaca’s city centre (port and marina area), is the other hotspot at which real estate investors and developers are showing a high interest to develop. The upcoming port and seafront redevelopment is set to transform the heart of Larnaca into a lifestyle and investment hub.
Why investors should act now
With transaction volumes surging, prices climbing steadily and rental yields supported by a booming tourism sector, Larnaca offers a rare blend of affordability and upside. Major infrastructure projects and new university facilities lay down a foundation for long‑term growth. Meanwhile, the Golden Visa fuels foreign appetite, reinforcing liquidity. In short, Larnaca isn’t just the next destination to watch, it’s already proving itself a smart, data‑driven choice for investors seeking both income and capital gains.
Want to learn more about Marinakis or schedule a private viewing? Reach out to us at (+357) 24629000 or email sales@marinakisproperty.com. Explore our website marinakisproperty.com for the finest real estate opportunities.
