35% More Deals in August: Why Larnaca Is Becoming One of Cyprus's Hottest Real Estate Markets

For years, when Israelis talked about real estate in Cyprus, much of the conversation focused on Limassol and Paphos. But the latest figures are putting another city firmly on the map: Larnaca.

 

In August 2026, 299 property sale contracts were recorded in the Larnaca district, compared with 221 in August last year. That represents an increase of approximately 35%, the strongest year-on-year rise recorded among Cyprus's districts that month.

 

And this is happening within a property market that is already expanding.

 

Across Cyprus, 13,288 sale contracts were recorded between January and the end of August 2026, approximately 13.7% more than during the same period in 2025. According to analysis based on figures from the Cyprus Department of Lands and Surveys, this was the strongest first eight months of a year on record.

 

Larnaca itself recorded approximately 2,898 sale contracts during the first eight months of the year, around 13% higher than the previous year.

 

The numbers do need some perspective. Paphos is still leading cumulative growth for the year, while Limassol remains the country's largest property market in terms of overall activity. But in August, it was Larnaca that recorded the sharpest jump.

 

Transaction volumes are only one side of the story. Property prices are also moving.

The RICS Cyprus Property Price Index, produced in partnership with KPMG, showed that Larnaca led price increases across several categories during the second quarter of 2026.

 

Apartment prices in the district increased by 5.59% in a single quarter, while house prices rose by 4.48%. Office and warehouse prices also moved higher. KPMG noted that continued demand for residential and holiday properties remained supportive of the market.

 

So what is drawing more buyers to Larnaca?

 

One obvious difference compared with Limassol is the entry price. Limassol has developed over the years into a highly international and increasingly expensive market. Larnaca, by comparison, still offers lower price points in many areas while combining an international airport, coastline, tourism and substantial new urban development.

 

That mix makes the city relevant to several different types of buyers, including investors seeking rental property, people looking for a second home and buyers considering personal use.

 

Foreign purchasers are already playing a significant role.

Between January and July 2026, non-Cypriot buyers accounted for approximately 41% of all property sale contracts across the country. In Larnaca, foreign buyers represented around 46% of transactions, highlighting how much of the city's demand now comes from outside the domestic market.

 

There is, of course, another side to that trend.

 

As a city becomes more popular with investors, prices can begin closing the gap with more expensive markets. A quarterly increase of 5.59% in apartment prices is impressive, but it also serves as a reminder that investors should not look only at how fast a market is growing.

 

The price at which they enter matters just as much.

 

That is why August's 35% increase is interesting beyond a single month's statistics. It fits into a broader story of higher transaction volumes, rising prices and strengthening international demand.

Larnaca is still not Limassol in terms of overall transaction value, and it does not lead Paphos across every measure.

 

But it is increasingly difficult to describe it simply as "the cheaper option near the airport."

Larnaca is developing into a real estate market with an identity of its own.

 

For investors, the question now is whether the current momentum represents an unusually strong period, or the beginning of a longer-term shift in Cyprus's real estate map.

 

Source: Cyprus Department of Lands and Surveys data, as reported by Cyprus Mail on September 8, 2026, and the RICS Cyprus Property Price Index with KPMG in Cyprus for Q2 2026.