Rising demand and prices
While Limassol has held and continues to hold the lead in terms of foreign investment in recent years, current investors are also turning their attention to other cities on the island. Increased interest has been recorded in Larnaca.
Larnaca has started to develop both in terms of tourist infrastructure and housing. The high demand for houses and land in the region has caused their value to increase. The Chairman of the Real Estate Valuers Association, Polis Kourousidis, said that over the past three years, Larnaca has shown the highest percentage increase in prices compared to all other cities in the country – 50%. These results are mainly due to the interest from Israelis who are looking for a backup option for life and business.
Both housing and land are becoming more expensive
In Larnaca, property prices remained relatively low for many years. A one-bedroom apartment could cost around 100,000 euros three years ago, now it is 140,000. A three-bedroom apartment, which cost around 150,000 three years ago, has now risen in price to 210,000. There has also been an increase in the prices of land plots. Three years ago a square meter cost 100 euros, and today it is 150-170 euros.
Investors prefer the eastern part of the city: Livadia, Oroklini, Pyla. There is interest in the villages to the west of Larnaca (Pervolia, Kiti, Mazotos), but it is much lower.
Hotels as a driver of progress
The General Secretary of the Association of Large Construction Projects, Christos Petsiridis, noted that tourist accommodation is developing in the city: new boutique hotels and large hotels are opening, and the existing infrastructure is expanding. This gives a new dynamic to the city and the region as a whole.
“The development of new spaces within the city limits, the creation of new squares and pedestrian streets gives the city a new dimension, improving the safety of movement for pedestrians, cyclists and people with disabilities. The implementation of the mixed-use development project Larnaca Land of Tomorrow will give a significant boost to the economy of the city and Cyprus as a whole,” Petsiridis believes.
Larnaca vs. other regions
The annual report on the Cyprus real estate market, presented by PwC Cyprus, states that the volume of transactions in the Larnaca region increased by 22%, and in the Paphos region – by 4% year-on-year. The growth observed in these two regions compensated for the decline in trading activity in the Limassol region.
