The three-year-long recession in Cyprus affected property prices all over the island. The dramatic increase in property values that was noted after joining up with Europe in 2004 slowed down over the recession period in most cities and towns – with the exception of Limassol.
Limassol held steady throughout the recession mostly because it is one of the most popular tourist destinations. Even with the recession ongoing, this city kept growing and prospering with plenty of new businesses and new building constructions rising.
In 2014 everything started getting better and the economy all over the island improved. Property values all over started escalating dramatically but the biggest escalations were still noticeable in Limassol. Most hi-end properties in this region enjoyed an incredible 45% increase in property value in 2017 alone and it is estimated that the property market will only keep skyrocketing.
Rental prices in Limassol skyrocket
The rental prices all over Limassol skyrocketed from 2016 onwards. Flats and houses rose with a massive 56% for flats and 42% for houses in the second quarter of 2017. This is quite a dramatic increase compared to average Cyprus flat rate increases of 8.3 % and house rate increases of 10% across the island.
Property markets in Limassol boom
It isn’t just the rental prices that show dramatic increases in Limassol specifically. Property values all over this city increased dramatically. The prices for apartments and houses in Limassol rose with more than 10% per six months.
Why this dramatic increase in Limassol specifically?
The improved economy is one of the biggest factors that affect property values and rental rates in Limassol and all over the island. But plenty of other factors trigger this tremendous change in Limassol like the following;
- A general increase in overseas interest in Limassol
- Massive increases in tourism in this popular destination
- The 550 million Euro casino resort that is in construction
- A much more positive outlook for the island
- The Cyprus investment programme is luring a lot of interest for hi-end properties
- Foreign investors who are interested in hi-end properties
- The fact that more luxury and hi-rise buildings are available in Limassol than other areas
- Much more businesses and work opportunities in the region
Is it good to invest in property in Limassol?
If you are wondering whether property is still a good investment then the answer is most certainly yes. The predictions for property markets are nothing but positive for this region and any smart property investments in Limassol is bound to either give you good returns on investment or a nice profit if you sell the property at a later stage.
If you are interested in buying property in Limassol then the best thing you can possibly do is to work through our Cyprus lawyers. We can help you with all the legal aspects of buying in Limassol and we will give you the best possible advice with regards the best types of property investments.