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