24.02.2023
Real estate investment in Larnaca is experiencing an all-time high and it is not surprising that investors are showing great interest in this city, given the variety of properties available for investment and massive development projects that promise to modernize the city.
Its Mediterranean climate and stress-free lifestyle, low crime rate and, most importantly, attractive government tax regime, as well as the freehold status program and low start-up costs for business registration are all very attractive incentives for foreign investors to start investing in real estate in Cyprus.
Larnaca is not only a port city, but also home to the island’s largest international airport, and its coastal location provides an opportunity to invest in modern city center apartments, luxurious beachfront villas, as well as well-developed maritime and foreign trade.
That is why more and more investors are choosing to invest in Larnaca.
Valuable Development Projects
As a market that has become favorable to the large Israeli investor community, with lower investment costs and more affordable land compared to larger cities such as Nicosia and Limassol, Larnaca now welcomes numerous high-value development projects and is likely to become the new leader for the sector real estate sales in Cyprus for the coming years.
Major projects, including the already completed Metropolis shopping center and the new municipal market, as well as the steady progress in the reconstruction of the new marina and port in Larnaca, are having a positive impact on the property market.
The modernization of the Larnaca-Dhekelia coastal road and the relocation of oil refineries, freeing up 3 kilometers of the embankment, will significantly improve the image of the city.
Larnaca’s new marina and port renovation
The EUR 1.2 billion renovation of the new Larnaca Marina and Port is the most significant investment project in Cyprus aimed at modernizing Larnaca and developing tourism, creating new jobs and additional investment opportunities.
The wharf expansion will have a different potential for profitability for investors. With international retail outlets, luxury villas and hotels, residential towers, gourmet restaurants and cafes offering first-class cruises and marinas, while being environmentally friendly and sustainable, New Larnaca Marina will be a wonderland for investors.
Some of the upcoming projects that will make Larnaca a focus for investment are:
- tower buildings and luxury hotels, including the QN Kition Tower and the Apollo and Poseidon towers of the NAOC complex;
- the Staston project, consisting of two residential towers and a hotel on Makarios Avenue;
- Radisson Beach Resort Larnaca on Dhekelia Street;
- Commercial project Ion Tower. in Drosia, Larnaca’s new emerging CBD.
Stable growth in the real estate market
The Larnaca real estate market has grown significantly and compared to other areas, apartment sales prices have increased for the fourth consecutive quarter in 2022.
According to the latest data provided by the Department of Lands and Surveys (DLS), the total value of real estate sales in Larnaca in 2022 reached 682 million euros through 4243 transactions.
The rental market has also registered an increase in value, mainly due to an increase in population. The arrival of citizens from Ukraine, Russia, Belarus and other countries, as well as companies that decided to move their activities to Cyprus, increased the demand for housing and caused an increase in prices for the purchase of housing and vacation rentals. Finally, an influx of foreign investors, especially from Israel and Lebanon, has driven up prices for apartments and villas in the Larnaca market.
As the Cyprus economy remains strong, low supply and high demand for housing means housing prices are unlikely to fall any time soon.
Statistically speaking, summing up the results of 2022, there was an increase in real estate transactions in Larnaca by 23.4% compared to the previous year (3437 properties were sold in 2021). These transactions were mainly related to the houses and apartments segments, and their total value also increased by 30.4% compared to 2021 (523 million euros).
The cost of renting apartments increased by 10.9%, houses – by 9.1%. Prices for holiday apartments increased by 8.0% and for holiday homes by 6.7%.
Strong demand from both domestic and foreign buyers is relatively high, and higher construction costs will continue to push home prices higher in the near future.
Larnaca provides many opportunities for real estate investment and passive income generation, whether you are planning to invest in modern apartments in the city center or luxury beachfront villas on the outskirts.
According to real estate experts, given how fast the city is developing, now is the time to invest in the city’s real estate market before prices skyrocket.
