Apartment Prices Surge in Larnaca
Apartments in Larnaca registered a remarkable quarterly increase of 5.61% in Q1 2025—the highest across Cyprus for this asset class. This trend demonstrates a strong demand for residential units in the city, fueled by both local and international interest. On an annual basis, apartment prices grew by an impressive 11%, further underlining Larnaca’s robust market dynamics and making it one of the hottest segments nationwide.
House and Office Price Growth
The property price uptrend was not limited to apartments. Houses in Larnaca experienced a notable quarterly rise of 4.78%, while office properties also posted gains of 1.72%. In the year-on-year perspective, house prices in Larnaca climbed by 2.00%, and offices saw a 2.84% uptick, reflecting sustained demand across residential and commercial real estate.
Warehouses and Retail: Muted Performance
Warehouses in Larnaca reported marginal gains of 0.82% for the quarter. In contrast, retail property prices declined by 0.90%, indicating a more cautious market sentiment in retail property despite the boom in other categories. This divergence highlights the dynamic nature of Larnaca’s property sector, with residential and some commercial assets significantly outperforming others.
Transaction Volumes and Values
Sales activity data reinforce Larnaca’s exceptional performance. Apartment sales in the district surged by 66.3% year-on-year in Q1 2025, reaching 321 units and totaling €60 million in value. House sales demonstrated even more dramatic growth, soaring by 77.1% to 62 units, and the total value more than doubled compared to the same period in 2024, hitting €24 million—a 118.2% increase. These gains in both volume and value speak to Larnaca’s appeal among both domestic buyers and international investors.
Comparison with Other Districts
While Larnaca led in growth, other districts showed varied trends. Limassol retained the largest share of transaction values, particularly driven by high-value property sales—primarily to foreign buyers—but its price growth lagged behind, with apartments rising by just 0.89% quarterly and houses by 1.55%. Nicosia, with its market more reliant on local buyers, saw much smaller increases (apartments up 0.53%, houses up 0.53% quarterly). Paphos showed mixed results, with modest office growth and a decline in apartment prices. Famagusta’s market displayed divergent trends, with significant drops in apartment sales and value.
Factors Driving Larnaca’s Growth
Several factors contributed to Larnaca’s strong property price performance in Q1 2025:
- High demand for new builds, especially apartments, among both local residents and foreign buyers.
- Increased preference for properties in Larnaca due to ongoing urban development, improved infrastructure, and competitive pricing compared to other coastal cities like Limassol.
- Shifting buyer interest towards lower-priced and mid-market segments, especially as central and coastal areas in Limassol and Paphos become increasingly unaffordable.
Market Outlook
The year-on-year and quarterly data indicate that Larnaca’s property market is set for continued buoyancy, particularly in the residential sector. While commercial retail properties showed weakness, the overall trajectory remains positive, driven by urban expansion and a consistently high demand for both apartments and houses.
In summary, Larnaca has not only outperformed other Cypriot districts in property price growth in Q1 2025 but is also consolidating its position as a prime destination for real estate investment in Cyprus, propelled by strong sales activity and a sustained upward trajectory in both prices and volumes.