Most articles about rental returns in Cyprus rely on listing-price estimates or projections from outside observers. This one is different. The figures below are drawn from Larnaka-wide market performance data for 2025, covering thousands of active listings across the district.
As a property management company operating exclusively in Larnaka, we track this data closely. We’re sharing it because investors deserve real numbers, not sales pitches. If you’re considering buying a property in Larnaka for short-term rental, this is what the market actually delivered.
What Larnaka Properties Earned in 2025 (Annual Revenue Per Listing)
These are market-wide averages across the Larnaka district. Individual property performance varies based on location, quality, and amenities.
| Property Type | Annual Revenue | Avg Monthly | Avg Occupancy | Avg ADR |
| Studio | EUR 13,376 | EUR 1,115 | 71.8% | EUR 55 |
| 1 Bedroom | EUR 15,003 | EUR 1,250 | 71.8% | EUR 62 |
| 2 Bedroom | EUR 20,270 | EUR 1,689 | 70.8% | EUR 84 |
| 3 Bedroom | EUR 26,870 | EUR 2,239 | 70.3% | EUR 115 |
A few things stand out. Occupancy is remarkably consistent across property types, hovering around 70-72% year-round. Larger units don’t necessarily fill more often, but they command significantly higher nightly rates; a 3-bedroom earns roughly double what a studio earns, despite similar occupancy.
Yield Analysis: What This Means for Investors
To translate revenue into yield, you need to know acquisition costs. Based on current Larnaka market pricing (Q1 2026 averages from public sources):
| Property Type | Avg Purchase Price | Gross Revenue | Gross Yield | Est. Net Yield |
| Studio (35-45 sqm) | EUR 85,000-110,000 | EUR 13,376 | 12.2-15.7% | 7.5-10.0% |
| 1 Bedroom (50-65 sqm) | EUR 115,000-155,000 | EUR 15,003 | 9.7-13.0% | 6.0-8.5% |
| 2 Bedroom (75-95 sqm) | EUR 170,000-230,000 | EUR 20,270 | 8.8-11.9% | 5.5-7.5% |
| 3 Bedroom (100-130 sqm) | EUR 230,000-315,000 | EUR 26,870 | 8.5-11.7% | 5.0-7.5% |
Note on net yield: We’ve deducted an estimated 20-25% from gross revenue for management fees, cleaning, utilities, maintenance, platform commissions, and consumables. Actual expenses depend on the management arrangement and property condition. These figures do not include mortgage costs or property taxes.
For context, the Cyprus average long-term rental yield sits at approximately 5.4% gross. Short-term rentals in Larnaka consistently outperform this, but they require active management, which is exactly why professional management matters.
Seasonal Revenue Pattern
Larnaka doesn’t have a single “season.” It has a revenue curve that looks like this (2-bedroom example):
| Month | Avg Revenue (2BR) | Occupancy | ADR |
| January | EUR 750 | 41% | EUR 67 |
| February | EUR 1,240 | 64% | EUR 70 |
| March | EUR 1,100 | 58% | EUR 69 |
| April | EUR 1,420 | 66% | EUR 78 |
| May | EUR 1,450 | 64% | EUR 84 |
| June | EUR 1,850 | 79% | EUR 89 |
| July | EUR 2,400 | 84% | EUR 103 |
| August | EUR 2,710 | 88% | EUR 111 |
| September | EUR 2,410 | 86% | EUR 102 |
| October | EUR 2,260 | 83% | EUR 97 |
| November | EUR 1,410 | 71% | EUR 73 |
| December | EUR 1,270 | 66% | EUR 71 |
The high season (June through October) generates roughly 2.8 times the revenue of winter months. But winter isn’t dead, January is the only month where occupancy dips below 50% for 2-bedroom units. This is one of Larnaka’s key advantages over resort-dependent areas: the city draws year-round business travellers, digital nomads, and relocation tenants, not just summer holidaymakers.
RevPAR: The Metric That Matters
Revenue Per Available Room (RevPAR) combines occupancy and pricing into a single efficiency measure:
| Property Type | Avg RevPAR | Peak RevPAR (Aug) |
| Studio | EUR 40/night | EUR 58/night |
| 1 Bedroom | EUR 46/night | EUR 69/night |
| 2 Bedroom | EUR 62/night | EUR 98/night |
| 3 Bedroom | EUR 82/night | EUR 120/night |
Market Scale
The Larnaka STR market peaked at approximately 1,290 active listings in August 2025, with over 56,000 reservations processed across the year. The market contracted to around 780-870 listings during winter, reflecting seasonal activation patterns, some owners choose to use their properties personally or rent long-term during low season.
What Drives Performance Differences
Within these averages, individual properties can outperform or underperform significantly. Based on our experience managing properties across Larnaka, the factors that matter most:
High performers tend to have: proximity to the seafront or Finikoudes, modern furnishing and professional photography, fast and reliable Wi-Fi (critical for digital nomad segment), outdoor space (balcony or terrace), and dedicated parking.
Underperformers typically suffer from: poor location with no walkability to amenities, dated interiors with no renovation investment, inconsistent guest communication and response times, and pricing that doesn’t adapt to demand.
Professional management bridges many of these gaps through dynamic pricing, listing optimisation, and consistent guest experience, but it can’t fix a fundamentally poor property or location.
The Bottom Line for Investors
Larnaka delivers estimated net yields of 5-10% on short-term rentals, with studios and 1-bedrooms offering the highest percentage returns and 2-3 bedrooms delivering the largest absolute revenue. The market has strong year-round demand, meaningful seasonality but no dead season, and property prices that remain well below Limassol levels.
If you’re evaluating a property for STR investment in Larnaka, we can model the expected returns based on the specific unit type, location, and condition. Contact us at urbanicahospitality.com to discuss your investment.