There were initial concerns that the halting of construction on Larnaca’s new marina would negatively affect the housing market and deter investors from the coastal city. For the past three years, this much-publicized project, particularly enticing to buyers from Israel, had boosted demand for homes around the port. However, despite the high-profile termination of the agreement with Kition Ocean Holdings, investors continue to show interest in Larnaca’s housing market.
While the initial shock was significant, assurances from the government that the project would still be completed calmed the nerves of potential buyers, especially foreign investors. According to real estate experts, Larnaca continues to enjoy positive momentum in its housing sector.
Shifting Investor Demographics
Real estate agents in Larnaca highlight that ongoing tensions in the Middle East have influenced the city’s buyer demographics. Although interest from Israeli investors has decreased, the number of Lebanese buyers has grown. Many Lebanese citizens are relocating to Cyprus for safety, similar to the migration seen in 2006. They predominantly purchase smaller apartments and houses, although some also invest in real estate for profit. Lebanese investors are acquiring properties across Larnaca, from Oroklini to Pervolia and Kiti.
Interestingly, a new demographic has entered the market—Polish buyers are now showing interest in properties in Larnaca, a trend that experts expect to increase in the coming years. This rise in Polish interest may be connected to growing concerns among foreigners about purchasing property in Cyprus’ occupied areas.
Steady Growth Amid Challenges
Recent sales data further illustrates Larnaca’s stable housing demand. In the first half of 2024, while Cyprus as a whole experienced a decline in property sales, Larnaca saw an increase in transaction volume. Although the total number of deals isn’t as high as before tensions escalated in Israel, Israeli buyers remain active in the market, albeit cautiously. Experts continue to view Larnaca as a highly promising location for real estate, noting that the city has many undeveloped beachfront plots that are ideal for large-scale residential projects.
Rising Prices Concern Locals
As demand rises, Larnaca residents are growing increasingly concerned about the rapid rise in local property prices. This spike is largely due to limited housing availability and increased demand. Despite this, Larnaca still offers some of the most affordable rental and purchase options in Cyprus. According to the Estate Agents Registration Board, rents in Larnaca for a one-bedroom apartment range between €600 to €700, for a two-bedroom apartment €800 to €900, and for a three-bedroom apartment around €900 to €1,000.
Source: philenews.com, dom.com.cy