Deal Breakdown: A Two-Bedroom Apartment in Larnaca — Calculating the Real Returns

July 12, 2026·1 min read

One of the most frequent questions we hear: “What can you actually earn?” Let’s break down a concrete case — a two-bedroom apartment in Larnaca, long-term rental, three-year horizon.

Deal Parameters

Property: two-bedroom apartment, 75 sq m, Larnaca, Mackenzie area / city centre
Purchase price: €185 000
Fit-out and furniture: €10 000
Total investment: €195 000

Rental Income

Demand for long-term rentals in Larnaca is steady: IT companies, shipping offices, expats, digital nomads. The average rate for a furnished two-bedroom apartment is €850–950/month.

Rent: €900/month → €10 800/year
Expenses (management, maintenance, taxes): ~€1 500/year

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Net income: €9 300/year
Cash yield: 4,8%

Capital Growth

Larnaca is posting outsized growth in transactions (+160% vs 2019) with prices 20–30% below Limassol. Annual apartment price growth in the area runs at 10–14%, according to market data.

Appreciation at a conservative +12%: €22 200/year
Total for the first year: €9 300 + €22 200 = €31 500
Combined return: 16,2% per year

3-Year Horizon

If current dynamics hold: - Rental income over 3 years: €27 900 net - Asset value growth: €185K → ~€260K (+€75K) - Bottom line: you invest €195 000, and in 3 years the asset is worth ~€260 000, plus €27 900 collected in rent

Why Larnaca

The entry ticket is €100 000 below Limassol, an infrastructure transformation is in full swing (a €415 million port + the €110 million Palm Beach Resort), and the rental market is stable with corporate demand. That combination is a rarity across EU markets in 2026.