Apartments in the Cyprus coastal town of Limassol are now an endangered species as demand has outstripped supply with prices rocketing compared to previous years, pricing Cypriots out of the market.
The demand comes mainly from Ukrainians seeking sanctuary from Vladimir Putin’s war in their country and also Russians who are leaving their country.
(Eurostat reports that in February 2023, Cyprus had the highest ratio of Ukrainian citizens granted temporary protection per thousand people at 1.1, followed by Czechia at 0.9.)
Speaking to the Greek language Phileleftheros the president of the Cyprus Property Valuers Association, Polis Kourousides, said available apartments are now an endangered species as their prices have tripled compared to previous years.
As Cypriots are paid considerably less than Ukrainians and Russians, they cannot afford to pay the exorbitant rents demanded leaving foreigners to grab what’s available.
Mr Kourousides doesn’t envisage a fall in apartment prices in Limassol for at least a year as new buildings and construction projects have yet to be completed. He said that “If the high demand in Limassol is not met with new buildings and newly built apartments to meet housing needs, apartment prices will increase even more.”
In addition to the rapid increases in apartment prices, there is also a large demand for property in Limassol, Larnaca and Paphos, which is mainly being driven by foreigners. There has been a great deal of interest by Israelis, who prefer to buy in Larnaca and Limassol, while Paphos is also showing strong interest from Britons.
Mr Kourousides noted that Britons tend to invest in smaller resale house in Paphos, while Ukrainians and Russians tend to buy or rent more expensive luxury houses and apartments. Israelis, on the other hand, tend to invest in land and build property. But a portion of them choose to buy homes in less densely populated areas of Limassol such as Germasogeia and Agios Tychonas.
