Limassol continues to have a leading role in the Cyprus Property market while sales in Limassol in 2017 account for a third of all transactions in Cyprus.
According to the Department of Lands and Surveys, out of the 2,011 sales contracts submitted to the district offices of the department, in the first quarter of 2017, 733 were submitted in Limassol. In the first quarter of 2016, the sales contracts in Limassol reached 634 out of the 1,881 submitted in Cyprus.
It is noted that in April 2017 as well as during the period January-April, property sales recorded the same rate of increase compared to the corresponding period (16%). Foreign property buyers have also shown great interest in Limassol properties. A third of the sales contracts submitted in Cyprus from foreign property buyers in April, were for Limassol, reaching 40 properties out of 127. At the same time, in the first quarter of 2017, the number of properties for which sales contracts have been submitted from foreign buyers in Limassol, reached 178 while in the entire island, they reached 521.
The above figures, registered at the beginning of the year, show that the property market in Limassol will grow even more compared to 2016 and previous years. Interest is shown by both local and foreign buyers who have chosen Limassol for their stay and business operations.
According to the Director of Imperio and member of the Board of Directors of LCCI, Yiannis Misirlis, infrastructure is Limassol’s biggest advantage in the real estate market. “The prestigious four and five star hotels have contributed to the development of good infrastructure in the hotel industry as well as other sectors and particularly on the coastal front.”
As regards foreign buyers, Russians have the largest share of the real estate market in Limassol, with more than 50% of the transactions, while other buyers such as Arabs, Israelis and Chinese have also invested in real estate. “Particularly in the services sector, law and accounting firms and foreign companies are an important part of Limassol’s real estate market.”
It is estimated that the amount of each transaction for residential immovable property in Limassol is between €300,000 and €600,000 while for commercial property, over €1 million is needed while prices in some cases show a slight increase.
According to the RICS Property Price Index, prices for apartments in Limassol recorded the largest increase in Cyprus in the third quarter of 2016, which amounted to 1.4%.
At the same time, Limassol reported the highest rate of increase in rental rates for apartments in the third quarter of 2016 or 1.7% while rental prices for homes and stores increased by 1.4% and 2% respectively on a quarterly basis.
An increase in rental prices was reported in apartments (4%), houses (4.4%) and shops (1.9%).
“Low construction activity during the economic crisis and increased demand have contributed to rising rent prices,” Misirlis added and pointed out that in the near future, an improvement in the rental market is expected due to the creation of new projects.
