Apartments for sale in Limassol, Cyprus
Limassol, the largest port city in Cyprus, has undergone significant changes in recent decades, becoming one of the most promising cities for property investment. This transformation is thanks to the active participation of the Limassol Municipality in European Union programs over the past 15 years, which continues today under the 2021-2027 development plan.
The Limassol Municipality has received significant funding from the European Union, amounting to hundreds of millions of dollars, contributing to the city's development and leading to substantial changes in all aspects of the urban landscape, improving quality of life and boosting the attractiveness of residential properties.
Over the past decades, Limassol has seen ambitious initiatives for construction, development, and renovation of important structures and facilities, including a new port, a new marina, an old port, the inclusion of TE.PA.K in the historic city center, and urban innovation projects. The Integrated Limassol Development (ILD) project was launched in 2021 and will continue until 2027 with the aim of developing smart city areas, the green forest environment, supporting business development, and transforming Limassol into a modern and attractive residential city. This includes innovation, entrepreneurship support, digitalization, energy, and environmental protection, all part of a broader strategy for Limassol's development as a comprehensive urban space.
These changes have solidified Limassol's position as a leading Cypriot metropolis, leading to high demand for housing in the city and attracting new investors to the local apartment market.
It is expected that coordination and joint action will lead not only to increased financial flows but also to synergy and the amplification effect of efforts. The financing structure of the new period of national development plans "THALEIA 2021-2027" will play a very significant role in achieving future successes.
It should be noted that the implementation of this plan combines the investment efforts of four funds totaling 969 million euros (ERDF - European Regional Development Fund, ETK - European Social Development Fund, EU Cohesion Fund, and Equality Fund) as well as the budget of the Cyprus government of 842 million euros.
According to the Central Statistical Office of Cyprus, rental prices increase every year across the island. However, the largest increase in rental prices in Limassol in 2023 was the highest among all places on the island (7.1%), indicating high demand for housing in a city that is developing at an impressive pace, ensuring investment stability for at least 5 years. Apartment prices also rose in all cities, but most significantly by 9.3% in Limassol, as this city has recently become increasingly important in Cyprus' business and tourism industries.
According to an analysis by the Central Bank of Cyprus, potential buyers actively seek to take advantage of the current opportunity to purchase properties from the existing inventory of homes before the changes in VAT are implemented.
Financial experts in Cyprus and politicians are currently discussing steps that will make the real estate market on the island even more attractive and reasonably priced in the future, such as adjusting the VAT rate. Cyprus currently classifies properties as "old" if they are over 10 years old, which is significantly different from other countries in the European Union. Redefining the classification period of "old" properties in Cyprus from 10 years to 4 or 3 years offers several advantages. Apartment owners who purchased them at a reduced VAT rate will also be able to sell or rent out their properties much earlier than the 10-year mark without facing heavy fines. Real estate companies will also be able to sell properties on more favorable terms. This change will provide all buyers with a wider selection of properties (more supply) and higher quality homes to choose from.
Considering the overall economic situation, experts expect apartment purchase prices in Limassol to stabilize in the near future, followed by further growth in apartment costs.
If real estate experts were asked to define the current situation, give it a name or a phrase, one might hear that even the legendary King Richard the Lionheart, who married his heart's choice Princess Berengaria of Navarre in Cyprus in 1191, if he were to marry in Cyprus today, he would definitely not continue his crusades but - he would certainly buy an apartment in Limassol and stay on the island for at least a honeymoon.
The current real estate situation for residential purposes in Limassol is ideal for investors looking for a convenient investment environment and expecting stable returns from investments in Limassol real estate in 2024.
Limassol, the most popular city for property purchases in Cyprus, continues to attract investors due to its development and growth trend.
In 2023, Limassol took the lead with 35% of all real estate transactions on the island. For comparison: Paphos - 23%, Larnaca - 19%, Nicosia - 18%, and Famagusta - 5%. The same trend was observed in 2022.
Interest in Cypriot properties continues to grow, with significant participation from foreign investors. 46% of all real estate properties purchased on the island in 2023 were acquired by foreign investors and buyers - an increase of over 15% compared to 2022.
Therefore, the housing market in Limassol remains vibrant and attractive to investors, promising stable growth in the coming years. Investing in an apartment in this city can be a profitable decision for those seeking a reliable real estate investment in a strategically important area with high growth potential.
