Before we get into why to invest in Larnaca in 2023, let’s mention that Larnaca is one of the six cities on the south coast of Cyprus. Larnaca, as the 3rd largest city in Cyprus, has a population of around 60,000 people.
For the past few years, many investors are looking into investing in Larnaca since it growing exceptionally with new opportunities popping up regularly. In this article, we will talk about 17 reasons why to invest in Larnaca in 2023. Here are our picks:
- Bright Investment Future for Larnaca
- Larnaca’s New Marina
- Metropolis Mall
- Lower Costs than Other Cities = Higher ROI
- Rental Opportunities
- The Increasing Demand for Real Estate Properties
- Larnaca’s Airport
- Larnaca is Perfect for Families
- Majority of People in Larnaca Talk English
- Larnaca Has a Good Tropical Weather
- Low Tax Benefits of Cyprus
- Cyprus is a Member of the EU
- Standardized Legal System
- Astounding Job Growth
- An Influx of High-Rise Luxury Developments
- Attractive Prices & Ambitious Infrastructure Projects
- Modern Residential Ecosystem
- Access to High-Quality Healthcare
- Growing Tourism Sector
- Strategic Location for International Business
1. Bright Investment Future for Larnaca
We have noticed that the bigger cities in Cyprus, such as Nicosia, Limassol, and Paphos, have saturated their investment markets for the past five years. However, Larnaca has a bright investment future ahead, and its market is growing every month.
Related: Real Estate Investment in Larnaca
2. Larnaca’s New Marina
In March 2020, a three-year international public tender procurement reached an agreement with Kition Ocean Holdings, consisting of a Cypriot and an Israeli company, to redevelop Larnaca’s current marina and port. This project is the largest infrastructure project of its kind in Cyprus and kickstarts many other opportunities along the way.
Currently, we are experiencing new real estate projects happening within the new marina area. This massive redevelopment project introduces so many investment opportunities for you to invest in Larnaca.
3. Metropolis Mall
Within 2020, we have seen the development of a new mall in Larnaca called the Metropolis Mall, a single-level, climate-controlled shopping, and lifestyle center with a gross lettable area of 39,000 m2. The mall will have 138 stores, including a supermarket, cinema, clothing stores, food court, playgrounds, and 1450 parking spaces. The delivery date of the project was set to be on February 2021. However, due to the pandemic, it has been postponed to November 2021.
Similar to the new marina, there are many real estate projects being developed around the mall area. This development is another push for Larnaca’s growth and introduces new opportunities for your investment in Larnaca.
4. Lower Costs than Other Cities = Higher ROI to Invest in Larnaca
By comparing Larnaca to the other cities in Cyprus, it is noticeable that investing is less costly, resulting in a higher return on your investment. The general population in Larnaca is well-educated and trained in local or international universities all around the globe. Hiring this talented workforce with a well-reasonable wage can boost your production and profitability, which is another reason to invest in Larnaca in 2021.
5. Invest in Larnaca for the Rental Opportunities
Larnaca is gaining popularity since locals and foreigners are relocating to Larnaca to work, study, and live. The increase in the relocations is growing the rental market and opportunities in Larnaca.
Besides, Larnaca is a hot destination for tourists. Many investors have turned the real estate investment properties into holiday rentals and Airbnbs. There are many investment opportunities for you to purchase or development your real estate properties and rent them in the market to return your investment.
6. The Increasing Demand for Real Estate Properties in Larnaca
Throughout 2022, the Cyprus real estate market remained resilient and expanded. On the island, real estate transactions reached a 14-year high. The relocation of many significant companies on the island boosted the demand for commercial properties. Many foreign investors purchased real estate to participate in the permanent residency by investment
scheme. The island’s prime position made it a preferred business hub in the area and a well-liked, multicultural vacation destination. Cyprus combines a high standard of living with a robust business environment and a great way of life wonderfully. In 2023, the real estate market is predicted to expand more. Concerning Larnaca’s growth, the city is
generating a growing area where more people invest daily. As a result, the city will be a considerably more profitable investment location through 2023. Invest in Larnaca without waiting any longer.
7. Larnaca’s Airport
Larnaca is also home to Larnaca International Airport, the island’s main airport. It has excellent access to the rest of the world as a result of this. Larnaca is ideal if you intend to invest in real estate in Cyprus, and international travel is essential to you. Having an airport in Larnaca has been a long reason why investors invest in Larnaca.
8. Larnaca is Perfect for Families
Larnaca is safe and offers so many perks for families living or planning to relocate to the city. The high-quality shopping experience, restaurants, coffee shops, sports centers, etc., are close to everyone around the city. The presence of a unique healthcare system, primary and high schools, universities, etc., makes Larnaca so attractive to families to live.
With having this family-friendly environment, there will be more relocations, which will result in more investment opportunities for you in Larnaca.
9. Majority of People in Larnaca Talk English
Southern Cyprus’ official language is Greek, and English is taught in schools. In Larnaca, Cyprus, almost everyone speaks English. Since there are no language barriers, this can be beneficial to your investment in Larnaca.
10. Larnaca Has a Good Tropical Weather
Larnaca, Cyprus, has one of the nicest climates in the Mediterranean. The average annual temperature ranges from 25°C during the day to 15°C at night. Why not invest and enjoy your profits under a warm Mediterranean sun!
11. Low Tax Benefits of Cyprus
The low corporate tax is one of the most appealing reasons why many people invest in Larnaca, Cyprus. The corporate tax rate is 12.5%, making it one of the lowest in the European Union and completely compliant with EU and OECD regulations. The advantages are not limited to the low tax rate. Your investment can also benefit from several tax exemptions such as Dividend income, disposal of shares, bonds, other financial instruments, profits, Foreign exchange (FX) gains, and Overseas Permanent Establishments (PEs) profits.
Related: Cyprus Tax System: A Detailed Guide
12. Cyprus is a Member of the EU
Cyprus is a member of the European Union and uses the Euro as its currency. The single market and customs union are also open to the island. Larnaca, Cyprus, as a member of the European Union, has the same status as any other nation on the continent.
13. Standardized Legal System
Cyprus was a British colony until 1960 when it gained independence and became a republic. The English legal system remained unchanged throughout this period of transformation and is still in use today. Since it is well-known and practiced, this formal legal structure can be advantageous to your Investment in Larnaca.
14. Astounding Job Growth
Investors looking to invest in a primary residence and relocate to Larnaca can benefit from the island’s enormous job growth potential. The New Marina project is likely to give birth to around 3000 to 4000 jobs directly tied to the infrastructural development. As the project comes to fruition and starts welcoming global recruiters, multinationals, and world-leading retail brands, the expected job growth is astounding.
Well-qualified and skilled professionals residing in Cyprus, the European Union, and elsewhere can benefit from Larnaca’s job growth boom. The New Marina development also offers a facilitative and well-integrated ecosystem for business owners and budding entrepreneurs to expand their companies with direct access to the European Union.
Individuals with families want to relocate to thriving business ecosystems to enjoy quality residential amenities in a facilitative environment where they can secure high-paying jobs to ensure superior living standards. Larnaca offers that and so much more.
This job growth can be another reason why it the time now to invest in Larnaca.
15. An Influx of High-Rise Luxury Developments
Are you looking to invest in a high-rise luxury resort with a picturesque view of Larnaca’s New Marina? Or perhaps, you want to establish a fine dining establishment to serve the European elite and foreign jet-setters yachting across the Cypriot islands? Either way, Larnaca is opening up as a dynamic and promising market for high-rise luxury developments.
For high-profile investors, the mixed-used developments of the New Marina hold endless opportunities for residential, commercial, and corporate investments. Investors can contribute to the hospitality sector by investing in restaurants, cafes, and bars, or they can seize opportunities in the residential sector. The New Marina aims to establish high-rise luxury developments to revive the tourism sector with multiple offerings, including luxury resorts, five-star hotels, fine dining establishments, shopping centers, and lavish villas.
These developments open multiple avenues for investments for high-profile investors who wish to become a part of a robust real estate legacy.
16. Attractive Prices & Ambitious Infrastructure Projects
Developers and real estate experts believe that Larnaca is Cyprus’s most promising and advantageous market. This attractiveness stems from the stability and appeal of the prices and the influx of infrastructural projects the city is set to witness. The ongoing developments aim to revive Larnaca like never before, and investors are flocking to the island to be a part of the ambitious real estate developments. This attractiveness is another reason why investors invest in Larnaca.
An insightful survey conducted by the Danos/BNPRE Group reveals that Larnaca attracts investors by offering “better bargains” for property development. Presently, Larnaca has surpassed the property development potential of Limassol, which was once the center of all real estate activity. Today, Larnaca is making waves in the property development sector with a profitability rate of over 38.9%.
Larnaca beckons investors and developments with affordable land to construct ambitious projects, such as luxury hotels, high-rise apartment buildings, and recreational facilities. Properties in Limassol and Nicosia are considered too expensive compared to the affordability that Larnaca offers.
17. Modern Residential Ecosystem
Larnaca offers investors a vibrant and robust residential ecosystem to support a modern and rewarding lifestyle. The island is a scenic cornucopia of sweeping island views, and the advent of the New Marina comes with the promise of a modern residential ecosystem. Investors looking to secure higher ROIs and benefit from Larnaca’s affordability have much to gain.
The New Marina is home to numerous high-rise residential developments and luxury villas, surrounded by an island of lush green spaces and recreational amenities. The developments also include a thriving education sector with schools and colleges, creating an ecosystem where residents will find everything they need within walking distance.
18. Access to High-Quality Healthcare
The nation actively promotes preventative medicine and places a high priority on health care. Foreign nationals who visit Cyprus for medical treatment also have confidence in the country’s healthcare system. Larnaca’s growing population and significant investments in the city have made it a sought-after location in healthcare. Larnaca is rapidly gaining appeal as a destination for expats, and many of the nation’s medical experts are either expats themselves or natives who have received training in other professions. In the city, there are both public and private hospitals. One of the first issues that comes to mind is the potential language barrier in hospitals. However, given how frequently English is used throughout the city, that is impossible. Acute medical care is easily accessible in the emergency departments of both public and private hospitals throughout the city. The quality of the health system in the city is an added value for people invest in Larnaca.
19. Growing Tourism Sector
The attraction of Larnaca as a travel destination has grown due to its magnificent beaches, rich historical sites, and exciting cultural events. This city’s tourism industry has rapidly expanded, offering profitable investment opportunities. Each year, many tourists visit Larnaca’s stunning beaches for relaxation, sunbathing, and water sports. History lovers go from all over the world to visit historical landmarks, which include churches, castles, and ancient ruins that provide an insight into the region’s intriguing past.
Tourists are further drawn to Larnaca by its vibrant culture, exemplified by traditional festivals, bustling markets, and mouthwatering cuisine. As a result, Larnaca’s tourist industry is prospering, with steady visitor and revenue growth.
20. Strategic Location for International Business
With its advantageous location in the eastern Mediterranean, Larnaca is a desirable place for foreign investment. Larnaca serves as a perfect entry point to three distinct markets: Europe, the Middle East, and North Africa (MENA). This location advantage makes international trade and investment initiatives much simpler, lowering logistical costs and complexity. Larnaca’s well-established infrastructure, which includes a contemporary port, an international airport, and a vast road network, serves to increase its allure. These reliable transportation connections enable the smooth movement of people, goods, and information, enabling organizations to function effectively on a regional and international level.
Since it has privileged access to a sizable consumer base and a network of free trade agreements, Cyprus’s membership in the European Union and attractive business environment are enhanced. This promotes economic growth. In summary, Larnaca’s advantageous location acts as a catalyst for company growth, diversification, and success in a world where markets are becoming more interconnected.
Bonus Reason Why to Invest in Larnaca: Ideal Location for Digital Nomads and Expats
Larnaca has emerged as the leading foreign destination for digital nomads by providing a robust infrastructure and a centralized location to explore lucrative opportunities across the European Union. Digital nomads desire accessibility, ease of travel, favorable taxation regimes, a breathtaking landscape, and state-of-the-art connectivity infrastructure – Larnaca offers all that and much more with its promising residential market.
Digital nomads can explore Larnaca’s residential market to relocate and reside in one of Cyprus’ most vibrant neighborhoods or establish a passive income stream through vacation and long-term rentals. The government’s tax regime, the non-dom status program, and Larnaca’s modern oasis of natural beauty make it the ideal destination for digital nomads looking to transform their lifestyles and generate wealth.
Larnaca can well standout among your locational options start an investment. The benefits mentioned above are not the only ones. The above points are just the highlights of what we believe can make Larnaca, Cyprus, so attractive to make investments in.
Related: Complete Guide on Cyprus Investment