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Demand for properties rental in Limassol continues to grow
20.11.2017
A property market boom in Limassol has driven up rents as
demand for housing has outstripped supply as more companies have moved to the
area seeking accommodation for their staff. Filed Under LESS than ten years
after the bursting of the Cypriot property market bubble, the sector has
entered a tentative recovery phase. The exception is Limassol, where it is
already booming with prices and rents driven upwards at a fast rate which
experts expect to continue in the foreseeable future.
“The number of students and workers rose in Limassol partly as a result of the relocation of companies with their staff,” said Pericles Markaris, a Limassol-based property valuer in a telephone interview on Thursday. “There are a lot more forex firms, shipping, investment, law, accounting and business services companies now in the town. Demand for housing has increased while supply failed to cope over the past crisis years”.
As many cannot afford to purchase a new home, they resort to renting one which in turn drives rent prices upwards, Markaris said. According to the Cyprus branch of the Royal Institute of Chartered Surveyors (RICS), rents for flats and houses in Limassol rose in the second quarter of 2017 an annual 26 per cent and 22 per respectively, against an island-wide increase of 8.3 and 10 per cent, also respectively. Also, prices for both apartments and houses rose in Limassol more than 10 per cent in April to June compared with the respective quarter of 2016. By comparison, flats became in Cyprus on average 6.2 per cent less affordable while house prices rose 4.7 per cent, according to RICS. In the second quarter this year, apartments and houses were rented at an average price of €5.71 and €3.16 per square metre in Limassol, compared to €4.88 and €2.83 in Nicosia respectively, also according to RICS. Two years before, a tenant would have to pay €4.38 or €2.49 per square meter for a flat or house respectively in Limassol, compared to €4.33 and €2.33 in Nicosia. A large number of companies have arrived bringing also its workers who are in no case low earners and receive a monthly salary of €2,000 or €3,000. They are looking for modern, high quality apartments and are willing to pay €1000 or more for a two-bed room flat.
Rising prices and rents offer new opportunities that investors will seek to use. Limassol is preparing for the construction and operation of a casino, which is expected to create 4,000 new jobs. This situation prompted entrepreneurs to plan new projects, which will take up to three years.
The latest data on building permits show that in Limassol new housing and non-residential projects that received a green light from the authorities increased by 58 percent in area over the first eight months of the year. Last year, the area of licensed projects in Limassol grew by 52% compared to 19% on average in Cyprus.
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