Larnaka Short-Term Rental Market Report – Q1 2026

This quarterly report tracks the performance of Larnaka’s short-term rental market using aggregated market data. It is intended as a reference for property owners, investors, and industry professionals evaluating the Larnaka STR market.

Published by Urbanica Hospitality Management. Data covers the Larnaka district across all major booking platforms.

Q1 2025 Baseline (January-March 2025)

Before looking at current performance, here’s where the market stood in Q1 2025 as a comparison baseline:

Metric January 2025 February 2025 March 2025 Q1 Average
Active Listings ~780 ~870 ~860 ~837
Occupancy 43% 64% 58% 55%
ADR (2BR) EUR 67 EUR 70 EUR 69 EUR 69
Revenue/Listing (2BR) EUR 750 EUR 1,240 EUR 1,100 EUR 1,030
Total Reservations 3,112 4,320 4,850 12,282

Q1 2026 Performance

[This section will be updated with Q1 2026 data as it becomes available. Based on market trajectory, we expect:]

  • Active listings: Moderate growth of 5–10% year-on-year as new supply enters the market
  • Occupancy: Stable or marginally improved, supported by growing digital nomad and relocation demand
  • ADR: Slight upward pressure of 3–5% driven by inflation and improved property quality across the market
  • Revenue per listing: Expected 5–8% increase year-on-year

Key Market Indicators to Watch

Supply Growth

Larnaka’s STR supply grew from approximately 780 winter listings to 1,290 summer listings in 2025. The market is expanding but remains far from oversaturated compared to Limassol or Paphos. New development in Livadia and the marina area will add supply through 2026–2027.

Demand Segments

The Larnaka market benefits from demand diversification that insulates it from pure tourism seasonality:

  • Summer tourism (June–October): The primary revenue driver, accounting for ~60% of annual income
  • Digital nomads (October–April): Growing segment drawn by mild winters, low cost of living, and EU timezone
  • Business travel (year-round): Steady baseline from companies operating in the Larnaka district
  • Relocation tenants (year-round): People relocating to Cyprus who use STR while searching for permanent housing
  • Medical tourism (year-round): Patients visiting Larnaka hospitals, typically staying 1–4 weeks

Regulatory Environment

The Cyprus government is actively developing short-term rental regulations. Property owners should stay informed about CTO registration requirements and any upcoming municipal-level restrictions. The Cyprus Short Term Rental Association (CSTRA) advocates for balanced regulation that protects the industry.

Seasonality Calendar

For planning and pricing purposes, the Larnaka STR year breaks down as follows:

Period Months Revenue Index Pricing Strategy
Peak Jul–Aug 100 (baseline) Maximum rates, 2–3 night minimums
High Jun, Sep–Oct 85–90 Strong rates, moderate minimums
Shoulder Apr–May, Nov 55–65 Competitive rates, flexible stays
Low Dec–Mar 35–55 Value pricing, weekly/monthly discounts

Year-on-Year Trends

Looking at the broader trajectory of the Larnaka STR market:

  • Supply: Steady growth of 8–12% annually in peak-month listing count
  • ADR: Gradual upward trend of 3–5% annually, driven by improved property quality and platform pricing tools
  • Occupancy: Stable at 70–72% annually, suggesting demand is keeping pace with supply
  • RevPAR: Net positive trend, indicating the market is not diluting despite supply growth
  • Guest origin mix: Increasing diversity, with growing shares from Middle East, Scandinavia, and digital nomad markets

Outlook

The Larnaka STR market enters 2026 in a healthy position. Supply growth is measured, demand is diversified, and the marina redevelopment project provides a medium-term catalyst for both tourism and property values. The key risks to monitor are regulatory changes and any acceleration in supply that outpaces demand growth.

We will update this report quarterly with fresh market data. Subscribe at urbanicahospitality.com or contact us for a personalised market briefing.

Methodology

Data in this report is derived from aggregated market statistics covering the Larnaka district across major short-term rental platforms. Revenue figures represent gross booking income before management fees, cleaning costs, and platform commissions. Occupancy reflects booked nights as a percentage of available nights for active listings. ADR is calculated as total revenue divided by total booked nights.

Property type categories (Studio, 1BR, 2BR, 3BR) follow standard classification. Mixed or non-standard configurations are allocated to the nearest category.

Recent Blogs

The Complete Guide to Short-Term Rental Investment in Larnaka, Cyprus

Best Neighborhoods in Larnaka for Short-Term Rental Investment

How Much Can You Earn from Airbnb in Larnaka? (2026 Guide)

Larnaka Short-Term Rental Investment Returns: What the Market Data Shows

How Urbanica Hospitality Uses AI Guest Messaging to Manage Hotels and Short-Term Rentals Across Cyprus and Greece

Why Property Managers Are Switching to AI-Powered Guest Messaging in 2026

Using AI to Upsell in the Hospitality Sector

Automating Guest Communication Using AI Tools

Ready to Simplify Property Management?

Let us take the stress out of managing your property. From rental income optimisation to comprehensive maintenance, Urbanica offers a solution for every need.