Larnaca’s Tourism and Real Estate Boom
Larnaca has emerged as a popular location for European baby boomers, ranking first in a TUI poll based on visitor feedback. The city’s popularity stems from its combination of seaside beauty and cultural activities, such as excursions to the Troodos highlands and the villages of Lefkara and Fikardou. This demographic development is influencing new travel patterns throughout Europe.
In the real estate sector, Larnaca has seen substantial growth, with a 36% rise in property transactions in February 2025 over the previous year. The city’s affordability as comparison to Limassol has attracted international investors, mainly from Israel, resulting in growing property values and rental prices. However, this growth has created concerns about affordability among local residents, particularly young couples. The demand for short-term rentals has increased, sparking debate over the need for affordable housing policies.
Cyprus’ Financial Performance
On the fiscal front, Cyprus has made significant headway toward reducing its budget deficit. In the fourth quarter of 2024, the general government recorded a €6 million deficit, a major improvement from €117.9 million in the same period in 2023. This reduction demonstrates solid budgetary management and bodes well for the country’s economic outlook.
For more detailed information, you can read the full article here: Cyprus Business Now: Larnaca tourism, real estate market, government deficit.