Ascending to New Heights: The Unstoppable Surge in Larnaca’s Rental Prices
Larnaca’s property rental market stands as a prime example of a high-return investment opportunity. With a thriving tourism industry, growing expatriate population, steady real estate appreciation, encouraging government incentives, and diverse property options, this city offers a golden opportunity for investors looking to maximize their ROI.
Larnaca is experiencing a transformation that’s attracting both expats and tourists. The well-connected international airport and a bustling seaport, contribute to its appeal, as a hub for both leisure and business travelers.
The growing demand for Larnaca as a prime destination has led to a remarkable real estate boom. Investors have been quick to capitalize on this trend, leading to the development of luxurious seafront apartments, stylish city-center residences, and elegant villas. Its real estate market now caters to a diverse range of tastes and budgets.
One of the most significant aspects of this transformation is the surge in rental prices, both short-term and long-term, with more than 900 apartments listed as vacation rentals and a countless number of listings for a longer term. As more people flock to Larnaca to enjoy its offerings, competition for housing has driven rental rates upwards.
This phenomenon is particularly evident in popular areas such as Makenzie where the average rental rate for a 1 bedroom has exceeds 100 euros for night with an average yearly occupancy rate of 80%, the city center, and the residential districts surrounding it, like the New Marina area and the upcoming Livadia have witnessed a rapid increase where monthly rent has doubled in a 2-years period reaching an average of 900 euros per month for a fully furnished 1-bedroom apartment.
The steady growth in property prices combined with an unstoppable rise in rental prices translates into a lucrative return on investment. With Rental yields ranging between 5% to 9%, depending on the type and location of the property, Larnaca has become a very competitive option for real estate investors.
At a regional level, Larnaca saw the largest increase in both holiday apartments and holiday homes, while prices in Limassol and Paphos remained stable.