November 25, 2025
Larnaca Real Estate Market 2025: A Comprehensive Year-in-Review
The year 2025 was a milestone for the Larnaca real estate market, marking one of the strongest periods of growth in recent years. With rising demand for both residential and commercial properties, expanding infrastructure, and increased investor interest, Larnaca continued its transformation into one of Cyprus’ most attractive property destinations.
This year-in-review explores the key trends that shaped Larnaca’s real estate landscape in 2025—and what buyers, investors, and developers can expect moving into 2026.
Overview of Cyprus’ Property Market in 2025
While property markets across Cyprus experienced positive movement in 2025, Larnaca emerged as one of the top-performing districts, surpassing national averages in both sales activity and property value growth.
Major national trends included:
- Increased demand for new residential developments, especially modern apartment buildings and villas.
- Strong interest among foreign investors, particularly those seeking long-term rental income or relocation opportunities.
- Continued investment into infrastructure and coastal improvement projects, benefitting coastal cities like Larnaca.
Larnaca Property Price Trends in 2025
Residential Property Growth
Larnaca saw robust upward movement across residential property types, with demand outpacing supply in several high-interest neighborhoods.
Apartments
- Apartment prices recorded notable quarterly growth, driven by strong demand from both local and international buyers.
- Modern units close to the seafront, airport, and city center performed especially well.
Houses & Villas
- Detached and semi-detached homes experienced steady price appreciation.
- Newly built homes saw double-digit increases in average asking prices, reflecting the rising cost of construction and high buyer demand.
Commercial Real Estate Performance
The commercial segment, particularly office spaces, performed strongly:
- Demand for high-quality, energy-efficient office space rose as more companies expanded their presence in Larnaca.
- Retail properties saw mixed results, with prime locations maintaining value while secondary areas showed slower movement.
Rising Rental Demand in Larnaca
Larnaca’s rental market strengthened significantly in 2025, supported by:
- Ongoing relocation of professionals, students, and remote workers
- Increased tourism activity extending into shoulder seasons
- Limited supply of modern, high-quality rental units
Apartments recorded some of the fastest rental increases, especially in areas with easy access to the city center, Finikoudes seafront, and the airport.
What Drove Larnaca’s Strong Real Estate Performance?
Strategic Location & Infrastructure
Larnaca’s location—home to Cyprus’ primary international airport—continues to make it a top choice for investors and homeowners. Large-scale infrastructure and urban development projects have further strengthened its appeal.
Growing Foreign Investor Interest
Compared to other coastal cities in Cyprus, Larnaca still offers competitive property prices, making it highly attractive to investors seeking value, rental income, or long-term residency.
Surge in New Developments
Modern apartment buildings, coastal villas, and mixed-use developments contributed to market momentum. Buyers increasingly favored new, energy-efficient homes offering modern layouts and amenities.
Lifestyle Appeal
Larnaca’s blend of coastal living, cultural heritage, safety, and evolving urban environment make it an appealing destination for European families and retirees.
Challenges & Market Considerations in 2025
Despite the positive trajectory, the Larnaca market faced a few challenges:
- Higher construction costs influenced new-build prices.
- Growing demand vs. limited supply led to faster-than-usual price increases in key areas.
- Retail property softness, with some segments experiencing lower demand compared to residential and office space.
These factors highlight the importance of working with trusted developers and advisors to navigate the market effectively.
What to Expect in 2026: Market Outlook
Looking ahead, several indicators suggest that Larnaca’s real estate market will remain strong in 2026:
- Continued infrastructure and coastal development
- Growing interest from international buyers
- Limited supply of high-quality new homes
- Rising rental demand from relocations and tourism
Larnaca is expected to stay one of the most dynamic markets in Cyprus, with opportunities across residential, commercial, and rental sectors.