Buying or renting: what is the best option in Larnaca?

Larnaca is one of the four main cities in Cyprus and is a great place to live and invest. The city attracts foreigners with its mild climate, developed infrastructure, proximity to the international airport and beautiful beaches. It is also one of the oldest places on the island with iconic landmarks.

Larnaca is a comfortable place to live and work, to do business both temporarily and permanently, but in both cases you need to choose the right property. The choice between renting or buying depends on many factors including financial capacity, purpose of purchase and length of stay.

Property in Larnaca is a good investment as the market is stable and growing. In recent years, the city has developed rapidly, which has led to an increase in prices, especially in the coastal areas.

For those just starting to explore the market, it is important to consider not only the current prices, but also the prospects for growth in the value of the properties, possible tax liabilities and the cost of maintaining the property. This issue is particularly relevant for those considering Larnaca as a potential investment location. A balanced approach will help you avoid unnecessary expenses and choose the best option for your property.

An overview of house prices in Larnaca in different areas

Larnaca offers a wide range of properties, but the variation in price is very high and this is mainly due to the location of the property being considered. Each area of Larnaca has its own characteristics which affect both the cost of renting or buying and the pace of life in the area.

City centre: Finikoudes Promenade, Marina and Old Town

The city centre and Finikoudes Promenade is the heart of Larnaca, where the main shopping streets, restaurants, office buildings and cultural facilities are concentrated. It is the most convenient place to live for those who appreciate an active urban life. The centre is dominated by apartment blocks, both old and new, with modern architecture. The high demand for housing results in high prices - perhaps the highest compared to any other district.

1. Rent: from 700 euros to 1.500 euros per month for a one- or two-bedroom apartment.
2. Purchase: from 2,000 to 4,000 euros per 1 m2.

The lowest rental price at the beginning of 2025 is 650 euros for a one-bedroom apartment.

The lowest price per square metre to buy is around 2000 euros, a one-bedroom apartment at this price will cost 145 000 euros.

Note: The most expensive luxury properties are in the New Marina area of Larnaca.

It is almost impossible to find private houses and villas in the central areas. If a more private property is required, it is worth looking at other areas of the city.

Mackenzie area

The popular Mackenzie Beach area is one of the most sought after areas for tourists and investors. It has only recently begun to develop, but is already well built up and beautified. Apartment complexes form the basis of the area, but there are virtually no private homes.

This place is ideal for holidays, short and long term rentals. There are numerous cafes, bars, nightclubs as well as economy and luxury apartment complexes with panoramic sea views. Due to its proximity to the airport and the beach, as well as active development, property in this area is rapidly becoming more expensive.

1. Rent: from 900 euros to 2 thousand euros per month for a one or two bedroom apartment.
2. Purchase: from 2 thousand euros to 5 thousand euros for 1 m2.

The lowest rental price at the beginning of 2025 will be 850 euros for a one-bedroom apartment.

The lowest price per square metre for buying an apartment is around 2,000 euros; a one-bedroom apartment at this price will cost 110,000 euros.

Elite properties cost around 5 thousand euros per 1 m2. Two and three bedroom apartments will cost around 850 000 euros.

Mackenzie is good for investment and an active lifestyle. Those who choose this area will get the proximity to the infrastructure of the city centre (it can be reached by car in 5 minutes), the space for beach recreation and water sports, as well as a convenient location for travelling. The fact that in 10 minutes by car is the largest international airport of Cyprus.

Tip: Prices for buying and renting in Mackenzie are not low and are a worthy competitor to the central areas.

Dekelia and Oroklini

These areas are popular with locals, but in recent years the demand for property in these areas has increased significantly among foreigners. This is because both areas are good for families and retirees. They offer a quieter atmosphere and are predominantly built up with villas and townhouses. There are also well-known hotels and holiday resorts, making Dekelia and Oroklini attractive for longer stays.

One of the great advantages of the north-eastern suburbs of Larnaca is the ease of access to the city centre. It takes only 10 minutes to get to the city centre, which is important for those who work in the city but want to live in a quieter and more private environment.

Property in Dekelia is considered quite prestigious, but prices are still lower than in the tourist areas.

1. Rent: from 6 thousand euros to 3 thousand euros per month for a house or spacious apartment.
2. Purchase: from 1,500 to 4,000 euros for 1 m2.

The lowest rent at the beginning of 2025 is 1 thousand euros for a one-room apartment. One-bedroom apartments in Dekelia and Oroklini will cost around 600-700 euros per month.

The lowest price for 1 m2 when buying is about 1.400 euros, a two-bedroom apartment at this price will cost 260 000 euros, a house - in the region of 400 000 euros.

The lowest price for renting a house in early 2025 is 1.200 euros in Dekelia.

Livadia

Livadia is one of the most promising areas, actively developing new residential complexes. There are schools, shopping centres and convenient transport links. This area is suitable for families with children and for those who want to live in a new house at a reasonable price.

1. Rent: from 800 euros to 1.500 euros per month per apartment.
2. Purchase: from 2,000 euros to 3,800 euros per 1 m2.

The lowest rental price at the beginning of 2025 will be 800 euros for a one-bedroom apartment.

A good house can be rented from 2,000 euros per month.

Хороший дом можно арендовать от 2 тысяч евро в месяц.

The lowest price for 1 m2 when buying an apartment is about 2 thousand euros, one-room apartments at this price will cost 130 thousand euros, a house - in 270-300 000 euros.

Элитная недвижимость стоит в районе 3 тысяч евро за один 1 м2. Очень просторная вилла в таком случае обойдется примерно в 1,5-2 млн евро.

Livadia is attractive because of the variety of housing types and classes. The area is mainly suitable for permanent and long-term residence, but investors are also interested in the location.

Housing types and prices: comparative table

For a more organised information, it is best to draw up a table of average prices.

How to choose the right fit: some tips

The following recommendations can be used for common life situations. However, you should make your final decision based on your own needs and preferences.

For students and single professionals

Studios and studio apartments in central locations allow you to get around the city easily without having to own a car. Renting is suitable for those coming for temporary study or work, while buying a small apartment can be a good investment for renting out later.

For families with children

Two- and three-bedroom houses in areas with developed infrastructure, such as Livadia, Oroklini or Dekelia, offer comfortable accommodation. When buying, consider the proximity of schools, parks and shops. Renting is convenient for families who are just planning to move and want to explore the area first.

For investors

The best option will be apartments and villas in tourist areas (Mackenzie, Finicudes Promenade). They are in demand for short-term rentals, which gives you a stable income. The closer the property is to the beach and tourist areas, the more profitable it will be.

For wealthy buyers

For those who want to live in maximum comfort, villas and country houses are suitable. Buying such a home is not only a convenience, but also a great way to invest capital, as luxury property in Cyprus is in high demand among foreigners. The most suitable areas are Dekelia and Livadia.

The advantages of renting: flexibility and minimal investment

Renting a property in Larnaca allows you to avoid large upfront costs such as a deposit for an apartment or house, taxes, registration fees and additional maintenance costs. This option is particularly suitable for expats, students, freelancers and those just starting to settle in a new city. Renting is also suitable for those who are unsure of the long-term viability of their stay in Cyprus and do not wish to burden themselves with a mortgage or property maintenance obligations.

Renting also provides the opportunity to 'test drive' different areas of the city before making a final purchase decision. For example, the touristy Mackenzie area offers easy access to beaches and restaurants, while the city centre offers easier access to jobs and entertainment. By renting, you can get a feel for the area's convenience, transport links, noise levels and infrastructure without having to make an expensive purchase.

Advantages of renting:

1. No large initial investment - no need to pay tens of thousands of pounds to buy.
2. Flexibility in where you live - it is easy to change neighbourhoods or move to another city.
3. No need for long-term commitment - you can terminate the contract if your circumstances change.
4. Minimal legal formalities - no need to register with the Land Registry, mortgage and other documents.
5. No repair and maintenance costs - most leases assume that the owner is responsible for repairs.

Disadvantages of renting:

1. Rising rents - the cost of renting may increase as the property market develops.
2. Lack of capital accumulation - all payments go to the landlord rather than to your own assets.
3. Dependence on the landlord - the landlord may sell the property or terminate the agreement for his own reasons.
4. Limited ability to change the interior of the property - you cannot carry out any refurbishment or change the finish.

Advantages of buying: long term benefits and investment potential

Buying property in Larnaca is seen as a safe investment that can bring tangible benefits over time. The value of property in Cyprus is gradually increasing and there are lucrative schemes for permanent residency through the purchase of residential property. The owner of the property can not only live in the purchased apartment or house, but can also rent it out, providing a stable income. Many investors prefer to buy houses in tourist areas to make additional profit from short term rentals.

Buying a property also provides financial stability. Unlike renting, where monthly payments do not build capital, buying allows you to consolidate your financial position and dispose of the property as you see fit. However, it is important to recognise that there are significant upfront and ongoing costs associated with buying.

Advantages of buying:

1. Capital formation - money is invested in an asset that may increase in value over time;
2. The ability to let - the owner can generate a passive income;
3. Financial stability and independence - no rent payments and the ability to dispose of the property as you wish;
4. Permanent residency programmes - buying a property from €300,000 gives the opportunity to obtain permanent residency;
5. Security of ownership - buying a property in Cyprus gives legal protection to the owner.

Disadvantages of buying:

1. High initial costs - it is necessary to pay a deposit or the full cost of the property;
2. The need to pay taxes and fees - annual property maintenance costs;
3. Downside risks - property may become cheaper in the event of an economic crisis, although there is no such prospect for Cyprus at present;
4. Low flexibility - more difficult to move to another city or country;
5. Maintenance responsibility - repairs, utilities and taxes are the responsibility of the owner.

Final comparison between renting and buying a home in Larnaca

The choice between renting and buying depends on your goals, finances and life plans. If flexibility and minimal costs are important, then renting is the best solution. If your aim is to invest or live permanently, then buying a property will provide more benefits in the long run. Either way, it is important to thoroughly analyse the market, evaluate your options and consult with Larnaca property experts before making a decision.

Tip: DOM Real Estate agency offers a range of services in the selection of properties, assistance in the preparation and execution of the transaction and all related issues.

Commercial Property: Renting and buying in Larnaca

The choice between renting or buying commercial property in Larnaca depends on a number of factors, including the purpose of the business, financial capacity and the duration of the proposed operation.

Renting a commercial property in Larnaca is a great option for start-ups, temporary projects or companies that do not want to commit to a long term lease. Renting allows for flexibility in choosing and adapting the space to suit the needs of the business, as well as avoiding large upfront costs. It is ideal for those planning a short term market presence or wanting to assess the business environment before investing in property.

Buying a commercial property is a good long-term investment. It is suitable for those who intend to work permanently in Larnaca, as well as those who wish to generate rental income. Investing in commercial property can generate stable returns for decades, especially if the property is located in high traffic areas or in developing business areas. Buying commercial property can also be a good strategy for those who expect property prices to rise in the future.

In any case, buying property in Larnaca or other cities in Cyprus is a good investment that can appeal to people of all professions, ideas and lifestyles. In addition, there is a lucrative Permanent Residence scheme for foreign investors, under which purchasers of properties worth €300,000 or more are granted permanent residency:

1. The right to permanent residence in Cyprus with automatic renewal;
2. The ability to conduct business on the island;
3. Permission for permanent residence for close family members;
4. A reliable investment;
5. A quality property for temporary or permanent residence on a warm island that is part of the EU.

The specialists at DOM Real Estate Agency will answer all your questions and help you to rent or buy property in any part of the Republic of Cyprus.

Read also:

1. Alternative payment options in Cyprus in 2025
2. TOP 5 most popular universities in Cyprus: their advantages and disadvantages
3. 10 Most Promising Residential Projects in Larnaca
4. Flat rental for students in Larnaca: our options and tips
5. Mortgage in Cyprus: How do I apply and what will the costs be?