Real Estate Investment
Real estate investment in Larnaca has begun to dominate the ecosystem of Cyprus. Redevelopment of the city’s marina, a new mall under construction, and other large real estate projects being built has impacted how investment is seen in Larnaca. The district has attracted strong interest from foreign investors, who have been the driving force for the housing market in recent years.
This article will look at statistics regarding the housing market and why real estate investment in Larnaca is becoming more and more popular.
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Real Estate in Larnaca: Strategic Location
Cyprus is known for its strategic location due to it being at the crossroads of Europe, Africa, and the Middle East. And, Larnaca has the same geographical merit. The district sits on the southern coast of Cyprus, situated just 52km from the island’s capital, Nicosia, and 68km from Limassol, Cyprus’s cosmopolitan hub.
Larnaca is also home to the island’s primary airport, Larnaca International Airport. This means that it offers excellent connectivity to the rest of the world. If you plan to invest in real estate in Cyprus and international travel is essential to you, Larnaca is ideal.
The city also holds a port which is located 2km from the town center and just 6km for the international airport. Larnaca port is 445,000 square meters and has petroleum facilities as well as the redeveloping marina. The energy and renewables sector of Cyprus is another segment that powers the island’s economy, along with real estate. This sector is seeing expansion due to the 2019 discovery of natural gas, which sparked huge excitement, and now real estate investment coincides with investment within the energy sector.
As Larnaca is a coastal city, it has plenty of beaches such as Finikoudes, Makenzy, and Faros. During the summer seasons, these are filled with tourists. We will discuss why this is a positive for real estate investment in Larnaca further on in this article.
Property Types in Larnaca
There are various types of property and opportunities for real estate investment in Larnaca. The city is known for being extremely versatile with residential and commercial investment prospects. These include apartment complexes, villas, houses, and commercial property such as office buildings. This section will discuss these property types and why you should consider making an investment in Larnaca.
Investing in a villa in Larnaca is also becoming increasingly popular. Villas are usually located further away from the city center of Larnaca, in areas close to the beaches. This property type is bound to give a high-quality of life as well as privacy and peace, something apartments in the city might not manage to match. As Larnaca is a coastal city with a strategic location, as mentioned above, the city is growing as a tourist destination. This has led to a higher demand in holiday villas. Therefore, if you are considering investing in a villa or complex to use it as a holiday villa and renting it out in the summer seasons, then real estate investment in Larnaca should definitely be considered.
Whether you want to invest in a complex or singular apartment, it is a great way to start your real estate investment in Larnaca. Luxury apartment complexes are in high demand, especially in the city center and marina area. As Larnaca is seeing major redevelopment, investors are keen to act now to reap the benefits later. Furthermore, as Larnaca is a tourist area during the summer months, it is not just residents and citizens that want to purchase or rent apartments. The tourist market also powers real estate in Larnaca. There is a high demand for short-term rental apartments close to the waterfront in downtown Larnaca. The city has also seen an increase in demand for long-term rentals in this area. This is partly due to more international companies moving offices to Larnaca, which has led to a surge in employment housing.
Commercial investment in Larnaca such as office space, apartment complexes, and retail parks, has seen huge growth in the past 5 years. Investor interested has sparked due to global corporate companies expanding operations in Larnaca. With this being said, it is clear that Larnaca is becoming the corporate hub of Cyprus, and now, outdated office buildings require some redevelopment to make them modern.
Office space was estimated to be at 260,000 square meters in Cyprus by the end of 2020, and although the pandemic did affect this, it is clear commercial investment is growing in demand. Therefore, it is understandable why investors are interested in commercial real estate investment in Larnaca.
During the beginning of 2020 (January), Cyprus saw an increase in permits for construction, with 395 being granted for the construction of 696 new homes. This was an increase of 2.9% when compared to January 2019. However, with the rise of the pandemic, much like the rest of the world, real estate in Cyprus saw a decrease overall. In terms of rental prices, the island saw a significant increase, with houses in Larnaca seeing a 23% increase during 2019 as well as a substantial increase in rent for commercial property. Nevertheless, with the agreement to redevelop the Larnaca Port and Marina, real estate investment in Larnaca is still growing with interest.
Conclusion on Real Estate Investment in Larnaca
As mentioned in the introduction, real estate investment in Larnaca is changing the landscape of the district and island. The city is seeing more and more interest in investment, especially from foreign investors. The large-scale projects, including the redevelopment of the marina and increase in demand for housing, is certainly cause for this interest.