Games like Loftia
Games like Loftia include Stardew Valley, Palia, Luma Island, My Time at Portia, and Sun Haven. We matched them by the tags players give Loftia on Steam (Life Sim, Cozy, Farming Sim, Massively Multiplayer, and Character Customization): closest matches first, and among equally close ones the better-known games.

Stardew Valley
Shared: Farming Sim · Life Sim · Multiplayer

Palia
Shared: Life Sim · Cozy · Farming Sim

Luma Island
Shared: Cozy · Farming Sim · Crafting

My Time at Portia
Shared: Life Sim · Farming Sim · Crafting

Sun Haven
Shared: Farming Sim · Life Sim · Character Customization

Hello Kitty Island Adventure
Shared: Cozy · Life Sim · Open World

Coral Island
Shared: Life Sim · Farming Sim · Character Customization

My Time at Sandrock
Shared: Life Sim · Farming Sim · Crafting

Disney Dreamlight Valley
Shared: Life Sim · Character Customization · Exploration

Infinity Nikki
Shared: Life Sim · Open World · Casual

FINAL FANTASY XIV Online
Shared: Massively Multiplayer · Character Customization · Open World

Paralives
Shared: Life Sim · Character Customization · Open World

Teddy's Haven
Shared: Cozy · Life Sim · Farming Sim

Echoes of the Plum Grove
Shared: Cozy · Farming Sim · Life Sim

Dinkum
Shared: Life Sim · Farming Sim · Crafting

The Elder Scrolls Online - Standard Edition
Shared: Open World · Massively Multiplayer · Exploration

Enshrouded
Shared: Open World · Crafting · Online Co-Op

Tales of the Shire: A The Lord of The Rings™ Game
Shared: Life Sim · Cozy · Farming Sim

Roots of Pacha
Shared: Farming Sim · Life Sim · Crafting

Where Winds Meet
Shared: Open World · Character Customization · Multiplayer

Outbound
Shared: Cozy · Exploration · Decorating

Spirit City: Lofi Sessions
Shared: Cozy · Decorating · Character Customization

No Place Like Home
Shared: Farming Sim · Life Sim · Crafting

Starsand Island
Shared: Life Sim · Farming Sim · Crafting