Advantages and disadvantages of buying property in Larnaca
Buying a home in Larnaca was considered until recently not very profitable in terms of investment. This is because the demand for housing was formed exclusively by local residents: Cypriots and citizens who got local passports.
Everything has changed in the last two years. Foreign buyers, mainly Arabs and Russians, have become interested in Larnaca. The construction of high-rises has begun in the city, which means that a new era has begun for the Larnaca real estate sector.
Should you buy an apartment or a villa in Larnaca? Here is a small list of the city’s advantages and disadvantages for investing in real estate.
Larnaca is an inexpensive city both in terms of living and cost per square meter. Land, apartments, townhouses and cottages – all this can be almost one and a half times cheaper in comparison with Limassol and Nicosia!
A square meter here can cost about €1000, or even less in some places. This is a great price, although more often it concerns secondary housing.
- Disadvantage: overpriced luxury real estate
Everything that has recently been built in the city has a big price. Demand has slowly started to grow and is not going to stop. Of course, this is good in terms of investments, but you shouldn’t hesitate: as the price can be equal to that in Limassol or the capital just in 2-3 years.
- Advantage: Ideal for short term rentals
If you are planning to rent out a property purchased in the Larnaca area for a short term, then you will not go wrong. The flow of tourists here does not dry out almost all year round. All because of the proximity of the largest international airport and the capital.
The first provides an influx of foreign tourists who, even in winter, are not averse to relaxing on the warm sea coast. The second brings Nicosians to the city, who live in the “sealess” city and also want to spend time on the beach.
If we talk about year-round tourism, then Larnaca has many undeniable advantages:
- the airport is located very close, and some tourists (especially in winter) do not see the point of going somewhere further, as it is so nice to stay in Larnaca
- many ancient architectural and cultural attractions, as Larnaca is one of the oldest settlements in Cyprus
- beautiful nature, the presence of unique salt lakes and flamingos nesting there
- mild, pleasant climate, it is not so cold and damp in winter
- well-developed agritourism, as there are a lot of large and small villages in the Larnaca region, which are a pleasure to visit.
So there will always be tourists in Larnaca. Of course, there are not so many of them in winter, but there will be no downtime in this region with the right choice of real estate.
- Disadvantage: you can’t earn much on a long-term lease
Yes, Larnaca is not as active as Limassol and Nicosia are. Only Papos and Famagusta districts: Ayia Napa and Protaras lag behind.
The demand for long-term rent is now among the locals, who have families and work here. There are practically no students here as only two small universities are located here, in which mainly Cypriots study. There are no business travelers either due to the lack of offices of large companies. That is why the monthly rent here is significantly lower than in Limassol and Nicosia.
But if we consider that a construction boom is expected in the city, then it may well be that in five years the situation will change dramatically.
Prices per square meter are not high, but they will not stay at the same level. Many experts say: Larnaca will be completely transformed in 5-10 years. It will be a worthy competitor to Limassol and Nicosia.
Therefore, for a long-term investment, Larnaca is an ideal option. Demand and prices will rise. Larnaca is the best fit for the long term.
- Disadvantage: underdeveloped infrastructure
Authorities pay less attention to Larnaca as it is still a tourist area for them. Therefore, it is quieter, but less comfortable to live here on a permanent basis.
Of course, there is everything that is needed for a city dweller: public transport, kindergartens and schools, clinics, electricity networks, water supply and sewerage, but the sphere of entertainment is very narrow, mainly aimed at tourists.
Of course, over time, this will all develop. But this takes a lot of time, not a year or two. If you don’t want to wait, then Larnaca is hardly your option.
- Advantage: the appearance of the first skyscrapers
Yes, Larnaca has finally got them! The construction of beautiful elite high-rises is underway now, they are: Naoc, Habitat towers, Marigate Larnaca, etc. Each of them is a work of art, these buildings will decorate the city and add a fresh stream to their appearance.
This also means that new opportunities have opened up for investors: it is possible to obtain the residency of Cyprus in the case of purchasing a primary property.
As you may know, in order to obtain permanent residence in Cyprus for you and for your family, you need to purchase real estate in the amount of €300 thousand.
- Disadvantage: a large stock of secondary housing
There are not many new buildings in Larnaca. Most of the housing is secondary. There are not too many apartments, thus the demand for apartments in Larnaca is expected to exceed supply.
This is not to say that this is an absolute disadvantage. This is even a big plus for some! If there is no goal of obtaining permanent residence, it is quite possible to purchase an apartment or a villa from the former owners.
- Advantage: great non-urban area
It has already been said that the villages of the Larnaca region are a separate advantage. You can write a separate article and write an article about each of them, they are so beautiful, interesting, and comfortable.
The village of Cyprus is a quiet place for seniors, families with children, and people committed to the environment and closeness to nature.
Housing in villages is much cheaper than in the city. For the price of a two-room apartment in Limassol, you can buy a 4-5-room house on a large plot!
This means that the property buyer has more choice! Each area has its own characteristics that need to be considered.
For example, the central part of Larnaca is a historical heritage. Here you can buy mostly secondary real estate, and at a very high price. In terms of profit, it is profitable to buy houses and make boutique hotels. There is always a demand for this, and individual objects practically do not require repair and large investments.
Mackenzie is located near the center with its own beaches, infrastructure and new buildings. Yes, this is where the construction boom in Larnaca begins. It is here that new buildings are being erected today and the infrastructure is actively developing, not only tourist, but also residential.
Both the center and Mackenzie are close to the airport, have access to the sea and look very attractive in general. These will be the busiest districts of the renewed Larnaca in the near future.