Limassol is where all the action is happening in Cyprus. Called as the Manhattan of the Mediterranean, Limassol has been in the news as foreign investors continue to flock to the city. 2023 is set to be a record year for sales in the region.
Indeed, the demand for properties in Limassol has been so big that property prices have already gone up by 14 percent in 2022 so far. There has been a flurry of property development in Limassol, as real estate developers rush to keep up with the huge demand for real estate there.
Michalis Hadjipanayiotou, the chief executive of Cybarco, a construction company based in Cyprus, says in an interview with the London-based newspaper The Telegraph, “Limassol has changed dramatically in the past few years. Some people say it’s no longer Cyprus, but Limassol still has a nice old town, the sea, and 300 days of sun.”
Another real estate developer, Nikiforos Pampakas, director of Limassol Marina, concurs. He says, “We need expansion. International investors want it, and locals now realize the benefits. Cyprus feels confident, it’s evolved. It offers the whole package to investors looking for a nice lifestyle.”
Pericles Markaris, a property valuer based in Limassol says in an interview with the Cyprus Mail, “The number of students and workers rose in Limassol partly as a result of the relocation of companies with their staff. There are a lot more forex firms, shipping, investment, law, accounting and business services companies now in the town. Demand for housing has increased while supply failed to cope over the past crisis years”.
Christos Panagi, who runs a Limassol-based construction company, Pandomus, says, “A large number of companies have arrived bringing also its workers who are in no case low earners and receive a monthly salary of €2,000 or €3,000. They are looking for modern, high quality apartments and are willing to pay €800 or more for a two-bed room flat”.
“Some of these companies provisionally accommodate their staffers at hotel apartments, and when we notify real estate agents about a vacant home, a war breaks out. We notify ten agents and each of them has ten customers. The first to respond agrees to all your terms,” Mr.Panagi adds.
Things are looking good in Limassol even as the national economy is doing spectacularly well. Cyprus experienced its third straight year of economic growth, with the GDP going up by 3.5 percent last year. Incomes have been rising too, as have rents and property prices across the country.
Limassol, being the hottest overseas property destination in Cyprus, is well-placed to take advantage of the uptick in the economy.
But there are many veteran Cyprus-based real estate experts that advise caution. Mr. Markaris is one of them.
He says, “There is no doubt that there will be a correction since the market cannot continue like this for a long time. But unlike the stock exchange, the real estate market is slower in its reactions and corrections. The new situation has prompted entrepreneurs to plan new projects which will take up to three years to be completed. But caution is needed so that we won’t have similar problems then.”
That’s a fair point. Regardless, it’s as good a time as any to be selling property in Limassol Cyprus.