Today, the coastal city of Limassol is the most popular among the foreigners. The economy is growing rapidly here, cultural life is always vibrant, and families with children have a wide range of educational institutions to choose from, including Russian-speaking ones.
Many aspire to buy property in Limassol for themselves or to invest in local real estate profitably. But how accessible is it?
Limassol is the first point in the Eastern Mediterranean chosen by international companies. It is a growing financial center, an important IT hub in the region, and one of Europe's main ports. The Cyprus government allows anyone over the age of 18 with the means and no criminal history to purchase real estate. When buying a new property worth at least 300,000 euros, an individual has the right to participate in a program for obtaining simplified permanent residency for their entire family. This government decision has significantly strengthened the construction sector.
According to experts in the Cypriot real estate market, just one newly arrived billionaire can significantly shake up the economy. Even after the closure of the 'Golden Passport' program in November 2020, the interest of large investors remains strong. The city continues to adorn itself with unique buildings designed for buyers with well above-average budgets. However, elite skyscrapers are no longer appearing in the construction plans for the coming years. Many projects currently under construction are being transformed into hotel complexes.
Limassol has been on the list of cities with the highest property purchase and rental prices for over 5 years, and it is also among the most comfortable cities. Previously, property buyers were divided into two camps: those who considered Limassol's real estate overpriced and those who believed in its growth potential and actively purchased new developments even during the construction phase. The expected profit for the latter ranged from 30-40%, but ultimately, after the pandemic and other global shocks, prices nearly doubled and remain stable.
Approximately 100,000 new settlers arrived in Cyprus in the past year of 2022. Some returned to their home countries, but many decided to settle down, establish their lives on the island, and even purchase real estate. Others are looking to move further (potential tenants). In any case, for a small island, 100,000 is a colossal figure.
The price per square meter continuously rose, reaching its peak value by the beginning of 2023. The average market price per square meter is 2,500 euros, and it is challenging to find ready-made housing for less than 3,500 euros per square meter.
When coming to the island from major cities, people primarily seek tranquility and comfort. The amazing opportunity to combine a Mediterranean lifestyle with business infrastructure is precisely what Limassol offers. Among newcomers, housing of comfort class with swimming pools and sea views is highly sought after, according to a real estate market expert.
In late March, the Mayor of Limassol, Nicos Nicolaides, announced plans for urban development.
This further supports the trend. One of the largest projects in the foreseeable future is the improvement of the infrastructure on the western coast, from the New Marina to the New Port. Plans include the construction of cycling paths and the organization of open spaces for pedestrians, including benches and modern lighting.
A budget of 400 million euros has been allocated for improving the city's transportation system over the next 10 years. The creation of new bus stops, dedicated bus lanes, cycling paths, parking lots, and other nature-friendly innovations will help combat urban traffic jams. In total, as part of the environmental innovation program, 1 billion euros will be invested in Limassol by 2030.
In summary, Limassol is the first point of choice for international companies in the Eastern Mediterranean. It is a growing financial center and a significant IT hub in the region.
How to Buy Real Estate On Your Own?
It's essential that completed real estate comes with a full set of documents. Properties must be registered with the Land Registry Department, have an architectural plan, and information about all previous owners. The main ownership document, known as Title Deed, is issued to each new owner, and there may be several, but only the latest one is valid.
If the transaction goes through a real estate agent, they must have a license for real estate activities in Cyprus or be an assistant to a local realtor.
The property purchase process involves several stages:
- 1. Signing a preliminary contract (which typically requires a deposit from the buyer).
- 2. Obtaining permission from the Council of Ministers for foreigners to purchase real estate.
- 3. Signing the Sales Agreement and making the full payment for the property.
Paying taxes and submitting an application to the Land Registry Department to obtain property ownership rights in your name. The duration of this process can vary depending on the municipality's speed of operation. However, it's advisable not to delay, as having the Title Deed in hand makes it much easier and faster to conduct any financial transactions related to the property.
Cyprus real estate can also be purchased with a mortgage. To do this, you need to schedule a meeting with a bank representative on the financial institution's website and come with the required documents that the bank will request. Typically, these documents include information about income, bank accounts, tax payments, and the applicant's passport.
Starting from March 15, Eurobank has raised interest rates on its main types of loans. The average interest rate for a mortgage loan in Cyprus now includes an additional 3%, making it 5%.
You will also need to open an account with a local bank to purchase real estate. To do this, you can submit an online application and send copies of the necessary documents. Citizens of third countries are automatically directed to international banking departments. You can either apply by yourself or through a representative.
List of documents typically required:
- Bank application form
- Recent utility bill (electricity or water bill) to verify your address
- ARC card (e.g., pink slip)
- Employment contract
- Biographical references (resume)
- Bank reference letter
- Bank statements for the last 6 months
- Confirmation of tax declarations for the last 2 years
- Tax Identification Number
Real Estate Prices in Limassol in 2023
The main types of real estate that attract modern buyers are land, new construction, resale properties, and commercial real estate.
Purchasing Land for Residential Construction
Do you have the time and means to build a home yourself? Then buying land can be a truly profitable decision. If you approach the process wisely, you can save up to 30% of the cost of a finished project and bring your ideas to life. By the way, we recently wrote a detailed blog on how to choose land in Cyprus correctly and check the documents.
As land on the island is a limited resource, it is highly valuable. The price of land in Limassol starts from 325 euros per square meter. For example, a 1424 square meter plot of land for residential construction with a sea view in the prestigious Agios Tychonas area is priced at 463,000 euros. You need to have a rich imagination to believe in the success of such a venture and be able to complete the project.
Buying New Property in Limassol
Modern buildings are known for their top-notch quality, high seismic resistance, and stylish design. Even the most economical options from reliable developers are built strictly in accordance with European standards. At the same time, comfort-class real estate allows you to fully experience the benefits of Mediterranean life while being in the heart of the business city.
The average price per square meter in off-plan new construction is 2,200 euros. For instance, the most affordable 1-bedroom apartment with a sea view in Agia Fyla, covering an area of 45 square meters, is priced at 120,000 euros (plus VAT). The expected completion date for construction is 2025.
In the quiet Zakaki area, a ready (with Title Deed) 1-bedroom apartment with an area of 58 square meters is priced at 199,500 euros (plus VAT). Ready new apartments with 3 bedrooms or more start at 500,000 euros.
A resale 2-bedroom apartment with an area of 97 square meters in the remote village of Moni is priced at 206,000 euros.
The most expensive option for new construction is a 4-bedroom penthouse in the under-construction residential complex Ocean Wings with an area of 183 square meters in the Agios Tychonas area, priced at 14.3 million euros (plus VAT). It's worth noting that the stylish 5-story building is already 70% complete.
Available real estate options in Ocean Wings
The most expensive villa at the construction stage is located in the Pyrgos area and is part of the popular architectural project Yoo Limassol By Philippe Starck. The 5-bedroom building has a total area of 1,075 square meters and a plot of 1,246 square meters, located 50 meters from the sea, and is currently priced at 12.742 million euros (plus VAT).
Available real estate options in Yoo Limassol By Philippe Starck
Even among new real estate projects, skyscrapers are now rare. Mostly, they are aesthetically pleasing mid-rise buildings. For example, the under-construction residential complex Brightbuild Residences (building height up to 26.5 meters) in the Tserkezoi area in the western part of Limassol. For the convenience of residents, there is a spacious tennis court and two shared pools.
Limassol is known for having the tallest buildings on the island. Prices for apartments in a skyscraper start from 440,000 euros. Such options are considered elite, and future residents are provided with various amenities, including round-the-clock concierge service, security, a gym, restaurants, underground parking, and much more.
Commercial Real Estate Purchase
Commercial real estate of increased comfort class is in high demand in Cyprus. A space suitable for a restaurant in the elite high-rise The Arc Ship in the Mouttagiaka area, with an area of 338 square meters, is priced at 4.056 million euros (plus VAT). An office with an area of 375 square meters in the Summit Business Centre project, which will be completed by the end of 2023, is priced at 2.016 million euros.
Available real estate options in The Arc Ship project
Available real estate options in the Summit Business Centre project
