Larnaca property prices have risen sharply, with no clear indication of where they will peak. Strong demand from Cypriot and overseas buyers has pushed sale prices up by 20% to 30% in just two years, according to estate agents. Apartment rents have also climbed to levels comparable with Nicosia.
The trend is raising concerns that housing could become a social problem in Larnaca, as it has in Limassol. Many couples can no longer afford to buy or rent in the city and are looking further afield, where prices have also increased in some areas.
Larnaca rents approach Nicosia levels
According to the Real Estate Agents Registration Council, monthly rents range from €600 to €700 for a studio, €700 to €800 for a two-bedroom flat and €900 to €1,000 for a three-bedroom flat.
“Property prices in Larnaca city have risen significantly and are approaching Nicosia’s levels,” said Marinos Kineyirou, president of the council. He said there were signs that prices in the city were beginning to stabilise.
The picture is different in the suburbs, where prices continue to rise. Values are increasing in areas including Tersefanou, Alethriko, Pervolia and Kiti.
Kineyirou also pointed to the unprecedented development in Livadia, which he attributed largely to the removal of the oil storage tanks from the wider area. In some cases, he said, property values there have tripled in recent years.
He does not expect apartment rents to rise further across the board. However, rents on older agreements due to expire are likely to increase when renewed, bringing them closer to current market levels.
Mackenzie leads, but the former refinery coast could overtake it
Mackenzie remains Larnaca’s most expensive area for flats, although its position may not last. New properties within Larnaca municipality cost an average of about €4,000 per square metre, while prices in Mackenzie can reach €6,000, said estate agent Vassos Zakos, director of Fox’s Larnaca office.
Limited availability helps keep Mackenzie at the top of the market. Prices are also high in the area around Saint Lazarus and across the city centre.
The next major change could come along the coast near the former refineries, where investments worth hundreds of millions of euros are planned. Zakos said there was no settled price level for the area, particularly for seafront plots. Indicative prices supplied for some developments start at €10,000 per square metre, he added, predicting it would become Larnaca’s most expensive area.
Zakos said sale prices across Larnaca had risen by 20% to 30% over the past two years. He is concerned that buying in the city has become almost impossible for many couples.
Some buyers are now looking beyond Larnaca, particularly in Alethriko. Kiti and Pervolia were once more affordable alternatives, but Larnaca property prices there have also risen and are approaching those in the city.
Growing demand from European buyers
Israeli and Lebanese buyers make up a significant part of Larnaca’s property market. But Zakos said demand from Europeans had also increased, including buyers from France, Italy, Poland and Germany.
Some are choosing Larnaca as a European base from which to work and live. Among them are digital nomads, he said, attracted in part by the standard of services in Cyprus.
Building permits rise by 53%
Figures from the Larnaca District Local Government Organisation point to rising demand and a construction boom. In the first eight months of 2026, building permits rose by 53% and planning permits by 42% compared with the same period last year.
From 1 January to August 2026, 3,957 building permits and 2,502 planning permits were issued. During the equivalent period in 2025, the totals were 2,586 building permits and 1,759 planning permits.
Local authorities seek affordable housing
Local officials acknowledge the pressure created by rising property prices and say they are looking at ways to provide homes at more affordable rates.
Larnaca mayor Andreas Vyras said the issue was a concern, but added that a municipality could not solve it alone. The municipality is preparing projects to support people facing serious housing difficulties, including affordable homes and student accommodation.
The municipality plans to exchange land with the Kition Metropolis near the new GSZ stadium to develop homes with affordable rents. It has also asked a team from the Cyprus Scientific and Technical Chamber (ETEK) to prepare the terms for an architectural competition. The aim is to secure funding from a dedicated EU affordable housing fund in the next programming period.
Vyras said the municipality also needed state support. One proposal submitted through the Union of Cyprus Municipalities is for the state to make land available for housing. He said the government had told municipalities it could not lease land for that purpose, a position with which he disagreed.
The president of the Larnaca District Local Government Organisation, Angelos Hadjicharalambous, called for incentives from central government. He said Larnaca district residents have the lowest incomes in Cyprus.
The organisation has recently met with the Cyprus Land Development Corporation (KOAG) to support projects already under way. Hadjicharalambous said a recent Interior Ministry decree on contributions from developments in Larnaca city and district would provide significant funds to KOAG.
The corporation is planning projects in Larnaca, with details expected to be announced at a joint press conference in November. The partners aim to make affordable homes available to residents to buy or rent.
By Natasa Christoforou
Translated and adapted from an article published by philenews
