The property market in Larnaca, along with local authorities, is witnessing an unprecedented surge in demand for properties, primarily driven by foreign investors. This surge is attributed to the promising growth opportunities emerging after the departure of oil companies and significant planned investments.
However, this heightened demand has led to a continuous rise in property prices, making some areas unaffordable for local residents.
In the last six months, property demand has increased dramatically, with a remarkable 200% rise compared to the previous period, according to Vassos Zakos, a real estate agent and director of a Larnaca-based office.
The greatest interest is coming from Israelis, attracted by Larnaca’s prospects and proximity to the airport, but there’s also increased demand from Lebanese and residents of European countries. The ongoing investments in the marina, port, and former refineries have solidified Larnaca’s position as the next hotspot in Cyprus.
Property availability, especially for rentals, has dwindled significantly, with some areas having a shortage of available properties. Sales of second-hand apartments have decreased, while new properties are predominantly sold off-plan. Prices in certain areas, such as Livadia, Oroklini, and Aradippou, have started approaching those in Nicosia, although they remain below those in Limassol. The availability of large office spaces is limited, hindering the establishment of large foreign companies in Larnaca.
The areas experiencing the highest demand include Oroklini, Livadia, Pyla, Aradippou, Kiti, and Pervolia. Livadia and Oroklini, in particular, benefit from the movement of oil tanks, and their popularity continues to grow. In Oroklini, where restrictions were lifted after the Seveso directive ended, real estate demand is at an all-time high, attracting both local and foreign investors. Livadia, with its released land post-Seveso, is also witnessing significant residential development.
Pyla, despite its unique status, is experiencing high demand, primarily from Cypriots. Aradippou, due to its available land and proximity to key infrastructures, is attracting young couples looking to build houses. The municipality of Aradippou limits tall buildings and focuses on up to four-storey apartment buildings.
Despite the positive developments and investments in Larnaca, rising property prices, especially in the city center, have raised concerns. The municipality is considering incentives for land developers to build affordable housing aimed at middle and lower-income individuals and families. The Mayor of Larnaka, Andreas Vyras, emphasizes the need for measures to ensure access to affordable housing to benefit the local community amidst the city’s growth potential.
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