Larnaca is an ancient city with a rich history that is now undergoing a real transformation. Larnaca was once a quiet resort town, attracting mainly tourists and locals. In recent years, however, this Cypriot city has attracted the attention of international investors, which has significantly changed its economic and cultural landscape. In this article, we take a closer look at how the investor profile in Larnaca has changed, who is investing in the city today and which properties are most in demand.
1. The evolution of investors: from traditional to modern investors
In the past, investors in Larnaca were mainly locals and tourists from Europe who bought property for personal use, usually for summer holidays. The main demand was for small apartments and houses by the sea. However, with the development of infrastructure and the growing economic attractiveness of the city, the situation began to change.
Modern investors are no longer just European pensioners dreaming of a house by the sea. Today, Larnaca attracts global players, from wealthy businessmen to young entrepreneurs, IT professionals and start-ups, as well as investors from the Middle East and Asia. According to a recent Forbes survey, the modern investor profile is characterised by greater mobility, an interest in asset diversification and a desire to take advantage of Cyprus' favourable investment environment.
2. Categories of modern investors
IT and Technology Investors
With the growth of technology start-ups and outsourcing companies in Cyprus, Larnaca is attracting more and more members of the IT industry. These investors tend to be young, mobile and long-term oriented. They are interested not only in residential property, but also in commercial property such as offices, co-working spaces and business centres.
What they buy: modern apartments in central locations, apartments with sea views and multifunctional office space. They are also interested in properties suitable for rental and short-term leasing. IT investors are also considering buying or renting office space for their start-ups, making Larnaca attractive to companies looking to expand their presence in Europe.
Investors from the Middle East
Cyprus' stability and attractive tax policies have made Larnaca a desirable destination for Middle Eastern investors. These investors often view property in Larnaca as a way of diversifying their assets and gaining citizenship through investment. In addition, Cyprus' proximity to Middle Eastern countries makes it a convenient location for business and leisure.
What to buy: Luxury villas and penthouses, building plots, hotels and resorts. Facilities with high standards of security and privacy are important. Some of these investors are also considering acquiring properties of cultural significance to emphasise their commitment to historic preservation.
Young entrepreneurs and start-ups
Another category are young entrepreneurs who see the potential for their businesses in Larnaca. Many of them invest in commercial property and see Larnaca as a base for their projects. This category of investor is looking to create new business opportunities, using Larnaca as a base from which to enter international markets.
What they are buying: small commercial units, co-working spaces, retail premises and rental properties. They are also actively interested in renovating old buildings and converting them into modern office or residential space. Investments in start-ups and innovative projects are also gaining popularity among this category of investors, contributing to the development of the entrepreneurial ecosystem in Larnaca.
European Retirees
This investor category remains important for Larnaca. European retirees are attracted to Cyprus by its mild climate and high standard of living. Although their preferences have remained relatively unchanged, they are now increasingly looking at Larnaca as a place not only for holidays but also for permanent residence.
What they are buying: small houses and apartments in quiet neighbourhoods, beachfront villas, properties with access to health and social services. They are also interested in properties that can be rented out on a long-term basis to generate additional income. European retired people also take an active part in local life, integrating into society and contributing to the development of the city.
3. Changes in property demand
As the profile of the investor in Larnaca has changed, so have the preferences for property types. Whereas previously the focus was on residential properties for personal use, today the emphasis is shifting to commercial properties and properties with high investment potential.
Residential property
Despite the increased interest in commercial property, residential property remains popular. Modern apartments, sea view apartments and luxury villas continue to be in demand, especially from Middle Eastern and European investors. Recently, there has been a growing interest in properties located in new areas of the city that are being developed and modernised. These properties often offer a high level of comfort, innovative architectural solutions and all the necessary amenities for a modern lifestyle.
Commercial property
With an increasing number of international companies opening offices in Larnaca, the demand for commercial property has increased significantly. Office buildings, business centres, co-working spaces and retail premises are becoming increasingly sought after, especially in the central areas of the city. Commercial property is attracting both large corporations and small businesses, helping to boost the city's economy and create new jobs.
Property for rent
Investors are increasingly looking at Larnaca as a promising place to buy property for rental. This includes both short term rentals for tourists and long term rentals for locals and expats. The high level of tourism and the growing number of expatriate workers make this market segment particularly attractive. In addition, the existence of a steady demand for rental properties encourages the development of new projects and the improvement of existing infrastructure.
Quantitative changes: an increase in the number of transactions
Larnaca has experienced a property boom in recent years. The number of property transactions has increased by tens of per cent, both for residential and commercial properties. Of particular note is the increased interest in luxury properties and building plots. Demand for property in Larnaca is also being stimulated by new infrastructure projects, such as the expansion of the port and the construction of new tourist facilities. These initiatives are attracting more and more investors who see huge potential for growth and development in Larnaca. The city is actively expanding and modernising, creating favourable conditions to further increase the number of transactions and attract new categories of investors.
The profile of investors in Larnaca has changed significantly in recent years. Whereas previously the main players in the market were locals and European tourists, today Larnaca has begun to attract the attention of global investors interested in a variety of property types. With its rich historical past and dynamic present, the city continues to grow, attracting more and more people who see it as a promising place to invest. Whether you are looking for a personal residence or are considering commercial property as an investment, Larnaca offers a wide range of opportunities to suit a variety of needs and expectations.
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