09.11.2023
According to representatives of the local property sector, property prices in Larnaca have recently risen to levels close to those of Nicosia, largely due to increased interest from Israeli investors.
Israeli enthusiasm for the region continues despite a slowdown in property sales since the conflict with Palestine began, which has shifted toward rental properties, causing rental prices to soar in some areas, putting them unaffordable for locals.
According to Vassos Zakos , director of FOX Real Estate in Larnaca , “interest before the war was akin to heavy rain for Larnaca . Although the number of Israeli investigations has declined since the war, their commitment remains high. They express their intention to leave Israel and look for property in Cyprus, especially in Larnaca .”
Larnaca’s appeal to Israelis stems from its proximity to the airport, growth prospects and significant presence of the Jewish community. “The once cheaper prices in Larnaca now reflect prices in Nicosia, which poses a problem for local Cypriot couples,” added Zakos .
“Prices for new three-bedroom apartments of 80-85 square meters start from €200,000 and rise by area, reaching over €300,000 in areas such as Mackenzie. Larnaca , which used to be much lower than other cities, has reached the level of Nicosia, creating problems for new Cypriot couples. We hope that the affordable housing and rental measures announced by the government will help the local market,” Zakos said .
Growing demand has led to a significant increase in rental prices, which worries experts about the possibility of further price increases, Temis noted Anastasiou from Africanos Properties . “Demand from Israelis for short-term rentals has increased since the war, leading to a constant rise in prices,” he added.
Marinos Kineiro , president of the Cyprus Estate Agents Association, warned that Larnaca could surpass Nicosia in prices. “The current stagnation in sales, coupled with a significant increase in property prices, poses a threat that Larnaca will surpass even Nicosia’s performance.
“After the war, the demand for rentals from Israelis increased. They are looking for housing for a period of three to six months, which leads to a constant increase in prices,” added Anastasiou .
Companies express interest in moving their headquarters to Cyprus
The war prompted some Israeli companies to consider moving their headquarters to Cyprus, especially Larnaca . However, Larnaca currently lacks significant infrastructure for large offices, Vassos noted Zakos . “At this stage they are carrying out exploration activities because they want to continue their activities. They prefer Larnaca because of the airport and connections to the city. However, Larnaca currently lacks the infrastructure for large companies and also lacks apartments for their employees to live in,” he said.
“The issue of the lack of large offices in Larnaca has long been raised by the Larnaca Chamber of Commerce and Industry . Companies wishing to establish themselves in Larnaca currently lack office space. To offer a full package of services, it is necessary to provide housing and private schools for families moving to Larnaca ,” stressed Charalambos Andreu , director of LCCI.
Moreover, Israel’s interest extends beyond real estate to significant investments in hospitality and business. “Major investments, such as the reconstruction of the port and marina, come from Israeli funds,” Andreu emphasized .
