Cyprus Real Estate news

Investment in real estate of Larnaca

Real estate investment in Larnaca is on the rise and investors are very interested in the region, given the variety of properties on the market available for investment, the large scale development projects promising to modernize the city and the lower entry level.

The relaxed lifestyle and Mediterranean climate, one of the lowest taxation levels in the EU, low crime rates, together with the non-resident program and low initial costs of business registration, are attractive conditions for foreign investors and digital nomads with plans to invest in property in Cyprus.

Larnaca is a crossroads of sea and air transport routes, and its advantageous location on the coast provides a profitable investment opportunity.

Under investments in real estate in Larnaca choose modern apartments in the city center or near the waterfront and city beaches, villas on the beach or close to educational institutions.

A market that is considered favorable by the large community of Israeli investors with a lower entry ticket to this market and more affordable plots of land compared to other cities in the island such as Nicosia and Limassol. In Larnaca numerous large-scale infrastructure projects have been launched, which will be another motivator for investment in the real estate sector of Cyprus in the coming years.

Major projects, including the already completed Metropolis Shopping Mall, the new Municipal Market, the progress of the new Marina and the modernisation of the Larnaca harbour (both worth €1.2 billion), are also expected to have a positive effect on the property market.

The seaport modernization project will offer upscale services for tourist sea cruises while keeping the region environmentally friendly.

The landmark apartment complexes and luxury hotels: QN Kition Tower, Apollo, Poseidon towers of the NAOC complex, the Staston project consisting of two residential towers and a hotel on Makarios Avenue, the beach resort Radisson Beach Resort Larnaca on Dekelia road and the commercial Ion Tower in Drosia and a new project in Larnaca's central business district are just some of the upcoming projects that are already attracting investors and will continue to do so.

The Larnaca property market has grown significantly compared to 2021 and has shown good growth compared to other regions of Cyprus. The total value of property sales in 2022 in Larnaca reached 682 million euros on 4,243 transactions, according to the latest data from the Department of Land and Survey (DLS Portal). Moving people from Ukraine, Russia, Belarus, Lebanon, Israel and other countries, as well as the active relocation of companies choosing Cyprus as a prime location for their business operations, have provided an increase in demand for housing and led to an increase in home values and rental prices. Rental rates for apartments rose by 10.9% and for houses by 9.1%. For vacation rentals, values rose 8.0% for apartments and 6.7% for homes.

With the strengthening Cyprus economy, a small supply of finished properties and a moderate number of new projects, high demand for housing and rising costs of building materials mean that property prices are unlikely to fall in the near future.

Statistics for 2022 show that the volume of property transactions in Larnaca is up 23.4% compared to 2021 (3,437 properties sold last year) and total investment is up 30.4% compared to 2021 (523 million euros). Larnaca shows itself as a very good region for investing and building a passive income portfolio.

According to our expert opinion, given the speed of the city's development, Larnaca real estate values will experience explosive growth in the near future and now is the best time to invest in projects that have not yet raised prices.