A further increase in rents in Limassol is expected, asthousands of workers building numerous projects will need housing in or aroundthe city, which will increase rents even higher.
It is expected that about 6,000 workers will break intoLimassol in 2019, which will further increase the already high demand forhousing from students and foreigners, which will lead to a resumption of growthin rental prices. Foreign companies participating in development projects overthe next 20 months will need a total of 3,000 construction workers, while thecity's casino will require additional staff of about 2,500 people, and another800 people will work in two new hotels.
According to the Rics Property Price Index in Cyprus as ofJune 30, 2018, in Cyprus on an annualized basis, prices for rental apartmentsincreased by 18%, for houses - by 17.7%, for offices - by 14.3%. The averagerent in Limassol for a one-bedroom apartment, where tenants are usually collegestudents, was 590 euros. In Nicosia - an average of 560 euros. In Limassol, anumber of civil initiative groups were formed, which last year held severaldemonstrations in protest against the rapidly rising rental prices, whichaccompanied the construction of high-rise buildings aimed at higher budgets ofwealthier foreigners, while the local salaries remain the same level
To solve the problem of high rent, the Ministry of theInterior agreed to accept the proposal, according to which incentives would beoffered to encourage the construction of apartment buildings that would beavailable for rent only to young couples and workers. In residential areas onthe periphery of Limassol, which are relatively cheaper areas, the allowablebuilding area will be increased by 30 percent, and the minimum area for astudio will be reduced from 70 square meters to 30, which will reduce therental price. In addition, building owners will be barred from selling them foreight years to prevent competition between contractors, which will increaserental prices.