Cyprus Property News for home buyers and real estate investors

Friday 7th May 2021
Cyprus Property News logo
HomeInvestmentLimassol is king of the Cyprus real estate market

Limassol is king of the Cyprus real estate market

Limassol continues to be the most important real estate market in Cyprus, and all available information supports this: sales, rentals, and prices.

Contrary to popular opinion, the Limassol real estate market is not showing signs of saturation, and despite existing issues and occasional fluctuations, it continues to be dynamic.

The repeal of the Cyprus Citizen by Investment Programme, for example, has had an evident effect.

Yet, interest for high-end properties in Limassol has not completely disappeared, with real estate companies adjusting accordingly.

In 2020, 54% of the transactions for Real Estate assets worth over €1.5 million were recorded in Limassol, according to a PwC Cyprus report.

Given that there are still quite a few available high-end properties in the district, the developers behind them must make appropriate adjustments.

At any rate, in 2020, Limassol was well ahead in terms of transactional value (the total amount exceeded €1.1 billion), and it was second in the volume of transactions (28% of the total).

With the pandemic and its effects on economic growth coming under control, we estimate that property development in the city and the wider Limassol area will continue at a rapid pace.

Limassol real estate projects

After all, it’s not a coincidence the Limassol district has historically absorbed the greatest number of building permits issued.

There are two main reasons why the sector’s growth will mostly head west of the city: several important projects west of Limassol are currently under construction or being planned.

These include the casino resort, a golf course, the expansion of the local mall and large residential developments; secondly, the largest available plots are west of Limassol.

To the east of the city, the available areas for development are quite limited.

We could see some tourism-oriented projects, some of which have already been announced and some new ones; however, there isn’t much room for further development.

For residential properties, which mainly involve locals, the areas of Ayia Fyla and Ayios Athanasios, north of the highway, have more potential for growth.

These areas have seen solid development in the last few years, they are relatively close to the city centre, and there’s still available land for further development.

In the last few years, we’ve seen how the city centre and the coastal front were utilized or purchased for future use, as well as how many vacant plots have remained.

In this specific area, rather than new developments, we estimate that existing buildings will be converted, modified, renovated, and upgraded in the next few years.

As shown by the 28% drop in the sales contracts submitted in 2020, compared to 2019, the real estate market in Limassol largely depends on foreign buyers.

Despite the drop, Limassol consolidated its position as the front-runner in Cyprus, accumulating 31% of the total sales contracts.

The future of the Real Estate sector in Limassol might be full of challenges but brims with potential that will allow the city to continue to be the country’s capital in property development.

About the author

Andreas Anastasiades is Director, WiRE FS

1 COMMENT

PLEASE LEAVE A COMMENT

  • All comments are vetted. Please keep all comments on-topic and relevant to the substance of the original article and ensure that the email address you provide is accurate and verifiable.
  • Comments considered to be potentially libellous and those containing racist, vulgar, derogatory, discriminatory or offensive language, personal attacks or advertising will be rejected.
  • Comments must not harass, abuse, or threaten another's personal safety or property, make false statements, defame, or impersonate someone else.
  • Do not submit the same comment more than once or it may be rejected.
  • Comments only please. If you have a question, visit the on-line Cyprus property forum.
  • Comments failing to comply with these guidelines will not be published.

Please enter your comment!
Please enter your name here

Cyprus Property News uses Akismet to reduce spam. Learn how your comment data is processed.

Sign up to receive our free newsletter.

We guarantee that we do not spam and will not divulge your email address to any third party.

Read our privacy policy for more information.

Cyprus property transfer fees

Property capital gains tax (CGT) calculator

EUR - Euro Member Countries
GBP
1.1506
RUB
0.0111
CNY
0.1278
CHF
0.9123

Top Stories