Dorita Yiannakou
A new skyline is rising in Larnaca, complete with modern high-rises and upscale mixed-use developments. What was once a modest stretch near the former oil refinery area is now poised to become a booming hub, thanks to major investments already in the pipeline from both local and international players, ranging from hotel chains to commercial enterprises.
This shift didn’t happen overnight. It’s largely the result of investors, particularly from Israel, Russia, the Arab world, and the U.S., growing increasingly frustrated with the sky-high property prices in Limassol. That frustration is showing in the numbers: Limassol is now losing its grip on high-value property sales.
According to an analysis by Landbank Analytics, the sale of new homes in Limassol dropped by 33.2% in 2024, falling to just 241 units. That slump dragged down total transaction value by over 30%, to €134.2 million. Most apartment sales were in the sub-€500,000 range, while sales of apartments priced between €501,000 and €1 million fell by more than 50%.
Larnaca, meanwhile, has flipped the script. Once seen as quiet and unassuming, it’s now recording impressive growth. In 2024, 1,394 new apartments were sold for a total of €273 million, along with 204 houses worth €69.3 million. Apartment sales alone surged by 40%, while house sales saw a modest 2.5% uptick. In value terms, apartments climbed nearly 40%, while houses dipped slightly by 6.5%.
The sweet spot? Apartments priced up to €300,000, 1,295 of them were sold in this range, marking a 42.1% jump over 2023.
Behind this boom is a chorus of discontent from foreign investors over Limassol’s inflated prices, which has shifted focus toward Larnaca’s more competitive market. And it’s not just about real estate: the city’s tourism industry has also taken off, with over 100,000 more visitors in recent years, 15 new hotels opening, and dozens more in the approval pipeline.
At the same time, demand for residential units and office space is rising, driven by companies choosing Larnaca as their new base.
Because while wealthy foreign investors may not pinch pennies, they certainly don’t want to feel like they’re being taken for a ride, especially when the same type of property is far cheaper just a few cities over.
This frustration with Limassol's pricing has been voiced repeatedly to local authorities, who are now under pressure to act. And as the saying goes, when the king is watered, so is the flowerpot, meaning even Limassol locals might benefit from this shift.
After all, soaring property prices in Limassol have made housing increasingly unaffordable for middle- and low-income residents. The persistent rise in prices is widening the social and economic divide, limiting access to homeownership for permanent residents and adding to local inequality.
Experts say that demand remains high, which makes price drops unlikely anytime soon. That holds true not just for Limassol, but for all districts across Cyprus.
*This article was translated from its Greek original.
