"Larnaca represents a solid long-term investment opportunity, particularly given its current stage of development. In comparison to more mature markets, it offers more accessible entry points alongside strong potential for capital appreciation," George Iacovou, CEO, Iacovou Group suggests, pointing out that, "Ongoing infrastructure improvements, along with a gradual shift towards higher-quality developments, support a positive direction for the market."
In a recent interview with GOLD magazine, and as investor interest in the Larnaca real estate sector increases, Iacovou discusses the city’s evolving property market and shares how he envisages it developing in the future.
Among other things, he also talks about what he considers to be the main drivers of property sales in Larnaca and shares his thoughts on how the city's buyer profile has changed.
In addition, the expert also weighs in on what policy changes or improvements could improve the sector’s long-term outlook and shares his assessment of Larnaca in terms of long-term return on investment.
Iacovou also reveals his view of how he anticipates Larnaca’s real estate market evolving over the coming 10 years, stating, "The city has the potential to develop into a modern urban centre that brings together residential, commercial, and lifestyle elements in a more integrated way.
Larnaca recorded 823 residential transactions in the first half of 2025, almost a quarter of them concerning mid- to high-segment properties. How does the city’s real estate and construction market compare to that of other cities and how do you see its further potential?
Larnaca’s real estate market has demonstrated steady and encouraging growth, particularly when compared to more established cities such as Limassol and Nicosia. While historically considered a secondary market, it is now increasingly recognised as a credible and attractive investment destination. The rise in mid- to high-end residential transactions reflects a gradual repositioning of the city. Larnaca is evolving into a market that combines relative affordability with improving quality and strong location advantages.
In the coming years, Larnaca’s potential will largely depend on how effectively key infrastructure projects are delivered, particularly the redevelopment of the port and marina area. At the same time, the presence of a modern international airport already provides a strong advantage in terms of accessibility and connectivity. With the right planning and steady investment, the city has all the ingredients to continue evolving and strengthening its position within Cyprus.
Who are the main drivers of property sales in Larnaca?
Demand in Larnaca is shaped by a combination of local buyers and international investors. The local market remains particularly important, especially in the residential sector, supported by relatively more accessible pricing compared to other cities and with an increasing focus on quality housing.
At the same time, international interest is gradually increasing, supported in part by the presence of Larnaca’s International Airport, which enhances connectivity and accessibility, making the city more attractive for both investors and residents. Cyprus continues to appeal to individuals seeking lifestyle benefits alongside a stable investment environment within the European Union, while there is also emerging demand linked to professional mobility and a corporate presence.
An additional factor contributing to demand is Larnaca’s ability to offer a balanced lifestyle, combining a family-oriented environment with direct access to the seafront. This blend of quality of life and accessibility is becoming increasingly important for both local and international buyers. Residential properties continue to dominate, while interest in commercial and office spaces is growing gradually, reflecting broader economic activity and the continued maturation of the market.
Has Larnaca’s buyer profile changed?
Yes, there has been a clear shift in the buyer profile in recent years. Traditionally, the market was driven largely by value-oriented buyers focused on primary residences or smaller investments. Today, it is attracting a more diverse and discerning audience. Higher-income individuals, international buyers and investors with a longer-term perspective are increasingly active. This is accompanied by stronger demand for higher-quality developments, modern specifications and integrated living environments. This evolution supports the overall upgrading of the city’s real estate offering and contributes to more sustainable growth.
What policy changes or improvements could improve the sector’s long-term outlook?
There are several areas where improvements could strengthen the sector’s overall performance. One of the most important is the need to streamline planning and permitting processes, which would help reduce delays and improve efficiency for both developers and investors. Infrastructure investment will continue to be critical, particularly in improving connectivity and public spaces, as well as how the city functions overall.
Equally important is how development is planned at the city level, which will ultimately shape Larnaca’s future. Additionally, encouraging sustainable construction practices and maintaining a stable regulatory environment will be essential in strengthening investor confidence and aligning the sector with broader economic and environmental priorities.
How would you assess Larnaca in terms of long-term return on investment (ROI)?
Larnaca represents a solid long-term investment opportunity, particularly given its current stage of development. In comparison to more mature markets, it offers more accessible entry points alongside strong potential for capital appreciation. Ongoing infrastructure improvements, along with a gradual shift towards higher-quality developments, support a positive direction for the market.
At the same time, further investment in key areas such as private education and healthcare, including the development of additional private schools and hospitals, will play an important role in enhancing the city’s overall appeal to investors. While returns may be more gradual, they are likely to be stable and sustainable over time. For investors with a medium- to long-term horizon, Larnaca represents a balanced opportunity, combining growth potential with a comparatively moderate risk profile.
How do you see Larnaca’s real estate market evolving over the coming 10 years?
Over the next decade, Larnaca is expected to further strengthen its position as a well-rounded and competitive real estate market. The city has the potential to develop into a modern urban centre that brings together residential, commercial, and lifestyle elements in a more integrated way. We can expect to see continued improvements in both the quality and variety of developments, supported by major infrastructure projects that will play an important role in shaping the city’s future.
Overall, the focus should be on achieving growth that is both sustainable and well planned, preserving the city’s character while continuing to improve its infrastructure and overall quality of life. If this balance is maintained, Larnaca will be well positioned to attract both investment and talent in the years ahead.
This interview first appeared in the April edition of GOLD magazine. Click here to view it.
