Larnaca Property Investment
Why Invest in Larnaca
There are many reasons why investors find Cyprus and Larnaca an incredibly lucrative investment. Some of these reasons are:
· Positive forecast of sustainable growth
· Low corporation tax (12.5%) and double tax treaty
· Geostrategic location
· A low starting cost for business registration
· Member of the EU
There are many perks in regard to Larnaca property investment. To start with, it is easy to rent out contemporary apartments in the city centers and luxury villas on the outskirts of the city, especially during the summer seasons. This is because Larnaca is a tourist destination, and tourists are likely to rent lavish properties during their stay. Cyprus also has the advantage of longer tourist seasons than most other European countries. If you plan is to invest in order to rent and gain a passive income then Larnaca is the ideal location. Furthermore, Larnaca is seeing an influx of foreign businesses setting up quarters in the city with employees that need housing. This means there is a high demand for housing in Larnaca.
The city also has an exceptionally low crime rate, meaning that any property you decide to invest in will be one of the safest in the world. In fact, Cyprus is the 5th safest country in the world. Therefore, Larnaca property investment is a safe investment.
Larnaca Property Investment: Projects
If you are looking to buy from real estate projects in Larnaca, then below are our projects built with the highest quality and at the most strategic locations in Larnaca:
- Larnaca – City Centre
- Internal Area Up to 97m2
- 2-3 Bedrooms
- Sea View: Yes
- Larnaca – New Marina
- Internal Area Up to 131m2
- 2-3 Bedrooms
- Sea View: Yes
Real Estate Market Growth in Larnaca
The rise in market growth within Larnaca has been prominent in 2022 alone. Unlike the other districts across the island, Larnaca has stood out as having the largest increase in sale value for the fourth quarter in a row (3.1% in quarter 2, 2022).
Larnaca continues to build a large portfolio for property investment. As for holiday apartments and houses, rental values increased by 5.7% and 3.7%, respectively.
Larnaca is the third largest city in Cyprus and the country’s central transport hub. As the Larnaca Marina and port reconstruction continue to develop, we’ll see a further rise rapidly within the real estate market and Larnaca Property Investment.
Larnaca Property Investment: The Location
Larnaca is one of the coastal cities in Cyprus, meaning it provides city life as well as a relaxed and luxurious scenic life. Therefore, you already have many options when it comes to Larnaca property investment, depending on your requirements. If you are looking to invest in contemporary apartments in the city center you do not need to give up a sea view as downtown Larnaca is on the seafront. This gives Larnaca a great advantage when it comes to what properties it can offer. Further on in this article, we will discuss our developments that offer just this.
But for now, let’s talk more about the location. With Larnaca being approximately 52km from Nicosia, 68km from Limassol, and 134km from Paphos, nothing is too far away. Larnaca has accessible highway links to all the major cities therefore if you are traveling for an extended amount of time, Larnaca is a good place to invest in a property. The city is also home to Cyprus’ main airport, Larnaca International Airport. This airport sees over 8 million passengers travel through it each year and connects to other major airports including Heathrow and Dubai International Airport. Finally, the city also holds a port that is located 2km from the city center. It covers 445,000 square meters and offers excellent investment opportunities in the shipping sector. You can find out more regarding the thriving sector of the Cypriot economy here.
If you are looking to invest in contemporary apartments in the city center you do not need to give up a sea view as downtown Larnaca is on the seafront.
Weather in Larnaca
Larnaca, Cyprus, hosts one of the best Mediterranean climates.
The yearly temperature averages 25°C during the day and 15°C at night.
For your next Larnaca property investment, you are not only enjoying the investment and location perks of Larnaca, but also the warm Mediterranean sun.
Related: Climate and Seasons of Cyprus
Larnaca Property Investment: Property Types
As we have mentioned, the landscape of Larnaca allows a multitude of various property types. These include the following:
Apartments
Larnaca sees more and more apartment complexes under construction. There is a high demand for apartments from both locals and foreigners who want to rent and buy a property. We have several projects both completed and under construction. One of these is our Gaia project. Gaia is situated a short walk from Finikoudes, the beachfront in Larnaca. This allows the apartment complex to combine the element of luxury apartments with sea views and the contemporary feel of living in the midst of the city. As this was one of our aims with Gaia, we created apartments with spacious balconies overlooking the Mediterranean Sea and designed the space to allow maximum natural light to flow through the living areas and bedrooms.
We also have another project called NOX. This project is our latest real estate development project in Larnaca. NOX is a mid-rise complex that has been designed to coincide with the contemporary landscape of Larnaca. This project is strategically located to overlook the new port and marina in the city, and much like Gaia, it is just minutes away from the waterfront. NOX has been designed to be comfy, spacious and tranquil. You can find out more about our projects here.
Villas
Villas are very popular in terms of Larnaca property investment due to the fact they have such a high return on investment. Locals look for long-term rentals and tourists want short-term villas rentals. This means that if you are looking for a passion income from investment, purchasing a villa in Larnaca is ideal. Most villas are situated on the outskirts of the district which means less pollution from the city, privacy, and security.
Why Invest in Larnaca’s Residential Market?
The advent of high-profile European developers and highly anticipated real estate developments have revived investors’ trust in Larnaca, allowing the residential market to grow undisturbed. The renovation and upgrades to the Larnaca Marina and Port have transformed the local economy, serving as a powerful catalyst for growth.
The most impressive aspect of Larnaca’s residential real estate sector is the sustainability of the ecosystem, supported by green spaces, climate-friendly installations, and scores of commercial developments to help small and medium-scale businesses. Since 2019, Larnaca’s residential sector has grown steadily, with prices rising steadily.
Figures reported in 2022 indicate a 2.5% increase in the prices for apartments, while the market rate for resort apartments in Larnaca has increased by 0.7%. Larnaca’s vacation homes and short-term luxury rentals have enjoyed astounding growth, with rental rates rising by 6.3%. Foreigners and locals are increasingly investing in vacation rentals to leverage the income-generating potential from Larnaca’s booming tourism sector.
Foreign investors are increasingly interested in investing in the Cypriot real estate market to generate passive wealth. The demand for Cypriot real estate has grown enormously in 2022, with over 5000 properties sold in Cyprus, of which 896 were located in Larnaca, increasing residential investments in the city by a whopping 58% compared to 2021.
Larnaca Property Investment: The New Marina
The New Marina is undoubtedly Larnaca’s most ambitious real estate development, all set to breathe new life into the city. This development plan is aligned with the ongoing boom of high-rise luxury developments set to transform Larnaca into a lavish, cosmopolitan hub. However, the New Marina is a one-of-its-kind mixed-use development that offers far more profitability potential than other ongoing and existing developments.
What elements make the New Marina so attractive for investors? The developments include residential, commercial, and recreational developments, allowing investors multiple avenues to be a part of Larnaca’s real estate boom. The development plans include luxury resorts, villas, hotels, restaurants, cafes, and high-rise apartments, creating a thriving landscape of mixed-used properties.
The New Marina will also witness the advent of global retailers and European brands, transforming Larnaca into a retail hub with multiple shopping centers. When you examine these profitable developments through the prism of land affordability, Larnaca is ripe with opportunity for those who seek. These developments have an enormous potential to bolster economic growth and support limitless job creation.
As Larnaca’s real estate sector continues to innovate and advance, investors can explore various avenues to secure higher ROIs with calculated investments. The expansion of the Larnaca port will transform the marina into a hustling and bustling strip deckled with global retailers, European brands, luxury hotels, fine dining establishments, and high-rise residential projects.
Land Affordability for Property Development
The last few years have witnessed a burgeoning foreign interest in Larnaca, fueled by investments from foreign investors anxious to buy land in Larnaca.
However, if you dig deeper, you notice that the Larnaca property investment trend trend is fueled by Larnaca’s land affordability, which surpasses the attractiveness of real estate hubs like Nicosia and Limassol. Larnaca offers investors cheap land to investors looking to collaborate on high-rise developments in the residential, commercial and corporate sectors. The last two years have witnessed the advent of high-rises, transforming the local ecosystem into a luxury-focused market.
Investors can benefit from Larnaca’s cost advantages to secure a luxury villa in the New Marina or invest in one of the city’s sprawling high-rise apartment ecosystems. Larnaca stands unparalleled in inexpensive cost per square meter and affordable living costs. The island is sprawling with many residential properties, including villas, cottages, apartments, townhomes, etc.
Entertainment in Larnaca: What Can You Do to Have Fun in Larnaca?
Larnaca is a fantastic choice as well for fun and enjoyment! Consider a location where you
may unwind a little after visiting historical sites and eating delicious food. To take a break
and go on an adventure here is not at all problematic. It’s also important to remember the
nightlife. Your breath will be taken away by the impressive Agios Lazaros stone church,
one of Cyprus’ most outstanding examples of Byzantine architecture. The beaches at
Mackenzie and Finikoudes are lovely places to soak up the sun and admire the gorgeous
sea.
Larnaca will impress you with its beautiful wineries and Oroklini lake if you want a
peaceful vacation outside the city. It’s important to remember the art enthusiasts as well. In Larnaca, you can learn about art and have a good experience by visiting museums and galleries. You have a tremendous opportunity to explore and enjoy these beautiful experiences by your next Larnaca property investment.
Conclusion
Larnaca property investment will provide many opportunities for both your family and self. There are prospects for gaining a passive income or adding to your portfolio by investing in contemporary apartments in the city center and waterfront and luxury villas on the outskirts of Larnaca. Investors have taken a particular interest in Larnaca because of the various property types and other benefits including tax and positive forecast in sustainability. With a 24.4% increase in contracts for property sales and rental prices increasing by 3.4% in 2019, it really is an investors market.
If you have any questions regarding Larnaca property investment and development in Cyprus, don’t hesitate to contact us at info@sunshadowinvest.com, call us at +357 24 816246, or Book a 20-Minutes Online Meeting.
