The Larnaca real estate market is seeing a significant rise in prices. According to industry representatives, property values have increased by 20–30% over the past two years. The main reasons are strong demand from local residents and foreign buyers, along with active development in new residential areas.
Marinos Kineyirou, President of the Cyprus Real Estate Agents Registration Council, noted that housing prices in Larnaca itself have approached levels seen in Nicosia. At the same time, some parts of the city are showing signs of stabilization, while property prices in the suburbs continue to rise.
Prices are rising particularly quickly in Tersefanou, Alethriko, Pervolia, and Kiti. Major changes are also taking place in Livadia, where development accelerated after the removal of oil storage facilities from nearby areas. According to Kineyirou, in some cases property values in Livadia have tripled in recent years. Rising prices are making it increasingly difficult for young families to buy a home. For many couples, purchasing their own property in the city has become almost impossible. More buyers are now considering Alethriko and other communities outside Larnaca, although prices are rising there as well.
How much does it cost to rent or buy an apartment in Larnaca?
According to the Cyprus Real Estate Agents Registration Council, monthly apartment rents in Larnaca are:
- One-bedroom apartment: €600–700.
- Two-bedroom apartment: €700–800.
- Three-bedroom apartment: €900–1,000.
Kineyirou does not expect rental rates to keep rising across the board. However, tenants whose older lease agreements are expiring will likely have to pay more when they renew, as new terms are brought in line with current market prices.
Purchase prices also vary significantly depending on the area. The average price of new properties within Larnaca Municipality is around €4,000 per m2. In Mackenzie, the figure reaches €6,000 per m2. It is one of the city’s most expensive areas, where limited property supply supports higher prices. Housing is also expensive around Agios Lazaros and in central Larnaca.
An even more expensive market is emerging along the coastline on the site of the former oil refinery complex. Projects worth hundreds of millions of euros are planned there. According to preliminary information, prices in some new developments start from €10,000 per m2. In the future, this area could become the most expensive part of Larnaca.
Construction boom: number of permits rises by 53%
Growing demand for property is being accompanied by increased construction activity. According to the Larnaca District Local Government Organization (EOAL), the number of building permits issued during the first eight months of 2026 increased by 53%, while the number of planning permits rose by 42% compared with the same period of 2025.
However, the increase in construction volume has not yet solved the housing affordability problem. The market is being influenced not only by local buyers but also by foreigners. In addition to buyers from Israel and Lebanon, interest has increased noticeably among buyers from France, Italy, Poland, and Germany. Some foreign buyers see Larnaca as a place to work and live permanently. They also include digital nomads attracted by living conditions and the quality of services in Cyprus.
Affordable housing: what solutions are authorities proposing?
Rising prices are causing concern among municipal authorities, who acknowledge that housing is becoming unaffordable for a growing number of residents. Larnaca Mayor Andreas Vyras said the municipality is developing projects aimed at supporting people who are struggling to buy or rent a home. Possible solutions include the construction of affordable housing and student residences. One project involves a land swap between Larnaca Municipality and the Bishopric of Kition near the new GSZ stadium. This would allow the municipality to build housing with affordable rents.
The municipality has also asked specialists from the Cyprus Scientific and Technical Chamber (ETEK) to prepare the terms of an architectural competition. The goal is to secure funding under a special EU affordable-housing program in the next programming period. According to the mayor, initiatives of this kind require support from the central government. Municipalities are proposing, among other measures, that state-owned land be made available for residential construction.
Angelos Hadjicharalambous, President of EOAL, has also called on the government to introduce additional measures. He noted that residents of the Larnaca district have the lowest wages in Cyprus, making rising housing costs especially difficult for household budgets.
EOA has already held talks with the Cyprus Land Development Corporation (KOAG) on support for existing housing projects. Additional funding for such initiatives is expected to reach the organization through a decree by the Minister of the Interior providing for financial contributions from develop