Demand for real estate in Limassol is rising
After a few years of recession, it is obvious that the real estate sector in Cyprus is undergoing a dynamic recovery, with Limassol being the leader the upward trend. The most recent data on construction permits reveal that new projects that were awarded permits rose up to 58% in the first months of 2017. Rents and property prices are on the rise as well while the city is going through a period of blooming, with high-rise buildings and large-scale projects being constructed one after the other.
Several factors are contributing to the increase of demand for real estate, with the main one being that Limassol is becoming an international business hub. It is a well-known fact that Cyprus is the largest third party ship management centre in the E.U and one of the largest in the world, hosting around 130 shipping companies. Numerous international companies have chosen Limassol as their headquarters, due to the business-friendly tax system, the geostrategic location and the advanced infrastructure. Many of these companies also bring with them a large number of employees who are looking to rent or buy a house near their job.
However, the working class is not the only one that seeks for housing. The number of students in the higher education institutions in Limassol is expanding significantly, especially after the opening of the Technological Institute of Cyprus based in the heart of Limassol, which has attracted a large number of students from all around Europe as well as other countries around the world. In order to meet the housing demand, many apartments in the centre of the city where the university is located have turned into student dorms.
Another factor that has influenced the rise in demand for real estate is a scheme introduced by the Cypriot government that grants residence permit or citizenship to people from countries outside the E.U with an investment of a certain amount and above in real estate. The scheme gained interest from people coming from countries like Russia, China, as well as the Middle East who not only wanted permanent residence in the island, but also a visa-free access to Europe.
Finally yet importantly, the recent findings in the gas fields have brought Cyprus to the attention of energy giants, such as Noble Energy, Kogas, ENI and others who were granted with exploration licenses. This development promises many new jobs related to the energy sector, especially in the Port cities of Limassol and Larnaca. Of course, this means that there will be a growing demand for real estate.
