Investment in Larnaca: Frequently Asked Questions

Investment in Larnaca

There has been a recent influx of investment in Larnaca. The residential real estate market has boomed along with large investment projects such as the redevelopment of the city’s port and marina and a new mall now under construction. Larnaca is now the investment hub of Cyprus but why? What makes Larnaca the ideal location for investment?

We have created a list of the most frequently asked questions on the subject of the city’s investment landscape. The topics range from location right through to real estate investments we have been part of.

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Recent Developments

What recent investments have been made and why do they impact the city?

The biggest investment so far has been the redevelopment of the port and marina. This is set to change the city’s future. Not only is it creating 4,000 jobs but it will also generate an extreme amount for the economy. The new Metropolis Mall of Larnaca is set to be completed by the end of 2020 and this most definitely adds value to the city. Both these projects impact the attractiveness of Larnaca as they create more jobs, imports and tourism.

What are your recent developments?

We have several real estate projects in Larnaca. Our most recent being our Gaia project. With sparked interest in investment in Larnaca due to the new port it only made sense that our project was located right next to the development.
We also have investment projects within the center of Larnaca. Our Kitiou residence is just minutes away from the sea front of Finikoudes yet is centrally located in the city center. This is what makes the landscape of Larnaca so ideal for investment, nothing is ever far away.

Can you provide statistics regarding investments in Larnaca and Cyprus?

Of course. We understand that numbers speak volumes so here are a few of the more recent statistics regarding investment. 395 construction permits were granted for 696 new homes at the start of 2020, an increase of 2.9% in comparative to last year. With the new Metropolis Mall in Larnaca and Neo Plaza in Nicosia, 450,000 square meters of retail space is being constructed.

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Real Estate Investment

Is Real estate a popular investment in Cyprus?

Absolutely! For the past, several years it has been gaining a lot of attention, especially from foreign investors. Complexes with 40+ units are the prime choice for investors.

Why should I choose real estate investment in Larnaca?

A recent report suggests that 40% of people think Larnaca is set to be the most developed city on the island. If that is not enough to sway you then you should know that 92% of people say real estate in Limassol is way overpriced while 44% said costal Larnaca is an absolute bargain!
An added extra is the new developments previously mentioned, such as the port.

I am not sure whether to invest in real estate or industrial property.

No one can decide for you but here are some statistics on different investment types. Within Cyprus most investors are interested in real estate, 70% to be exact. While 12% are interested in land, another 12% interested in others, 4% for office and 1% for industrial property.

Location and Why It Matters

Where is Larnaca situated?

The city sits on the southern coast of Cyprus. Its location allows ease of travel between the cities with only 52 km to the island’s capital, Nicosia, 68 km to Limassol and 134 km to Paphos.
The overall location of Cyprus is ideal for investment as well. Its in the northeastern Mediterranean allowing easy access from all continents.  

Does Larnaca have an airport?

Yes, the city is home to the island’s primary airport, Larnaca International Airport. The airport connects all the major tourist centers across the world, including Dubai, London and Moscow.

If Larnaca is a coastal city, does it have a port?

Yes, the city does have a port. It is located 2km from the town center, 6km from Larnaca International Airport and covers 445,000 square meters. To the north side there is petroleum facilities with the marina situated to the southern side of the port.

What beaches surround Larnaca?

There are 2 main beaches in Larnaca, Finikoudes and Mackenzie beach. There are also smaller beaches around the city including CTO, Mazotos and Faros beach. Both tourist and locals visit these beaches regularly. This is why many investors looking for major tourist cities are attracted to Larnaca.

Why does the location make investment in Larnaca so good?

To start, the location of the city is ideal for travel. You have the option to travel between the island’s cities or from abroad without hassle. You also have investment opportunities within the landscape, the beaches provide quality tourism throughout the year and the port has many possibilities for investment in Larnaca as well.

The Economy

What Are the advantages within the Cypriot economy?

There are plenty of advantages. Cyprus’ economy is supported by positive forecast of sustainable growth as well as having one of the lowest corporate tax rates across the EU at 12.5%

What are the main sectors regarding investment in Larnaca and Cyprus?

Real estate, tourism, maritime transportation, AIFs, startups and the film and entertainment industry.

Is Cyprus part of the EU?

Yes. This is why there are many advantages to investing in Larnaca, Cyprus. These include trading and tax systems, amongst others.

Does Larnaca have a lot of tourism?

Yes. As Larnaca is always reinventing itself, tourists visit throughout the year and often come back year after year. Although Paphos has been known as the destination for British tourists many experts believe Larnaca will soon become just as popular. You can visit the Larnaca Tourism Board to see what kind of experiences tourists can expect

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