All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Limassol's property market is included in our pack
Considering buying a nice property in Limassol? You're not alone!
Many people are charmed by Limassol's Mediterranean allure and dream of owning a stylish apartment or a luxurious penthouse there.
Would it be a good investment, though? Are property prices increasing in Limassol? Is it expensive? Should I buy property in the city center or Germasogeia? What about the taxes? Can I get a very good rental yield? Where?
We've figured it out for you.
The Investropa team knows this market inside and out. Actually, we've organized all our findings in a pack. Get it now.
In this article, we're happy to share useful information with you.
How's the real estate market in Limassol?
Is the property market going up or down? Let's look at fresh data and statistics.
Property types
In Limassol, you can find various types of properties for sale, including apartments, houses, villas, and plots of land.
Apartments offer convenient city living, while houses provide more space and privacy. Villas often come with luxury amenities and are suitable for upscale living.
Plots of land are available for those looking to build their own custom homes or invest in real estate development.
Whether you're seeking a cozy apartment, a comfortable house, a luxurious villa, or a land investment opportunity, Limassol offers a diverse range of property options to choose from.
Buying vs Renting
(If you're purchasing for personal use and not for renting)
If Limassol is your city of choice, you might be considering whether it's better to buy a property or opt for renting in this lively coastal city in Cyprus.
Without a doubt, it's better to buy if you want to build long-term wealth and gain equity in your home.
Our advice? Use the property price-to-rent ratio as your decision-making compass. It's like a measure of how much rental income you'll need to afford the property at its current value.
According to Numbeo, the property price-to-rent ratio in Limassol is around 10.18, which is quite low.
Simply put, on average, you could buy a property with just 10 years' worth of rental payments. Worth buying.
Property prices in Limassol
On average, according to the last data from Statistical Service of the Republic of Cyprus, buying a property in Limassol would cost you around $3,560 per square meter.
It's just an average. The value of a square meter for a seafront property in Limassol might differ from an apartment in the city center. We actually offer a more in-depth analysis in our pack for buying property in Limassol and in Cyprus.
To help you understand better, it means that, instead of buying an apartment in Paris or London, you can afford 4 properties in Limassol.
Also, housing prices in Limassol are 49% cheaper than in the Croatian Islands.
The most expensive neighbourhoods in Limassol are probably Agios Tychonas, Pyrgos and Ayios Athanasios, while the cheapest are Agios Ioannis, Kapsalos and Agios Antonios.
Trends
First and foremost, it's essential to recognize that Cyprus provides peace and stability to investors today. The last Fragile State Index that has been reported for this place is 56.9.
This is important to remember when wondering if it's a good investment to buy a property in Limassol.
Besides that, if we look at the IMF's GDP forecasts, Cyprus's economy is expected to soar by 12.9% in the coming 5 years, resulting in an average GDP growth rate of 2.6%.
If you want to invest in real estate in Limassol it's a good thing because, in a growing economy, citizens experience rising incomes that allow them to invest in real estate, either for personal use or as a profitable asset, contributing to the increased demand for properties.
Also, in Cyprus, the average GDP per capita has changed by 8.8% over the last 5 years. It's a satisfactory number.
This data is a positive signal - housing prices in Limassol might soar in 2024 and after that.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Cyprus right now.
Buying property in Limassol
It can be difficult to buy property in Limassoland due to the lack of reliable and updated information about the market. That's why we have created the pack to buy property in Limassol and in Cyprus.
Buying process
In our pack, we've explained the entire process of buying properties in a detailed way. We've pointed out the mistakes to steer clear of, shared tips for finding properties that give you the best returns, and provided information about taxes and necessary documents.
Now, we're giving you a simplified version of the buying process.
This is the step-by-step process to purchase a property in Limassol:
- Research the Limassol property market and choose a suitable property.
- Appoint a licensed real estate agent or lawyer to assist you.
- Conduct due diligence and verify the property's title deeds and land registry information.
- Sign a preliminary contract (Sale Agreement) and pay a reservation fee (around 1-2% of the property price).
- Engage a lawyer to handle the legal aspects, including a property valuation report and title search.
- Secure financing (if needed) from a Cypriot bank or transfer the funds to a local bank account.
- Apply for a Certificate of Approval from the District Office (for non-EU buyers) to acquire property.
- Sign the final sales contract (Contract of Sale) and pay the agreed deposit (around 30% of the property price).
- Obtain a stamped and certified copy of the contract from the Land Registry Office.
- Pay transfer fees and taxes, including Property Transfer Fees and VAT (if applicable).
- Register the property under your name at the Land Registry using the final contract.
- Receive the property's title deeds from the Land Registry, completing the buying process in Limassol.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Cyprus.
Make a profitable investment in Limassol
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Where to find a property
If you're seeking properties in Limassol, these websites can help you in your search:
- Kuutio Homes - An award-winning luxury property developer in Cyprus, renowned for crafting exceptional properties with captivating designs and natural materials.
- Altia - Offering a diverse range of properties across the country, including residential, commercial, land, and investment opportunities.
- Ktimatogora - Presenting an impressive portfolio of properties while closely collaborating with developers to bring your dream home to life.
- Spitogatos - Providing a wide variety of properties, advanced search filters, and an interactive map feature.
- Zoopla - Showcasing an extensive array of homes, apartments, and new developments, all offering breathtaking sea views and modern amenities.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Cyprus.
What you can get
As mentioned before, the average price per sqm in Limassol is $3,560. A one-bedroom property with 60 square meters would be priced at around $214,000, and a two-bedroom with 85 square meters would cost about $303,000.
However, as you can guess, property prices will differ based on the attributes of the property and its specific location.
Expect property prices to be on the higher side in the premium areas of Limassol. A condominium in Potamos Germasogeias might be about $410,000, while a condominium in Agios Tychonas could be priced at $380,000.
Nevertheless, there are spots that are more accommodating to your wallet. You can find a house in Mesa Geitonia for $270,000 or a house in Agios Athanasios that's priced at $220,000.
We give a more detailed pricing list in our full pack for buying property in Cyprus.
Common pitfalls
Here are the main pitfalls specific to buying a property in Limassol, Cyprus:
- Non-clear title deeds due to historical complexities may result in legal disputes.
- Unanticipated structural damage from termites, common in some areas.
- Complex zoning laws could limit property development plans.
- Overlooking potential subsidence issues in specific geological zones.
- Unexpected fees for road maintenance in certain residential communities.
- Fluctuating demand from foreign investors affecting resale value.
- Dealing with unregistered brokers without local expertise.
- Neglecting noise disturbance from nearby military training grounds.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Cyprus Property Pack
Living in Limassol
Life in Limassol is vibrant and sunny, with its stunning beaches, lively nightlife, and plethora of cultural activities, making it an ideal destination for those looking to buy property.
Cost of living
The cost of living in Limassol is generally considered to be fairly affordable. Prices for groceries, housing, and other everyday items are generally lower than in other major European cities.
Here are some examples to better understand the cost of living in Limassol, Cyprus:
- Traditional Cypriot coffee (Ellinikos Kafes): $2 at a café in the Old Town.
- Rent for a one-bedroom apartment in the Neapolis area: $800/month.
- Meze dinner for two at a local tavern in Germasogeia: $60.
- 1.5-liter bottle of KEO beer: $3 at a supermarket.
- Electricity bill for an 85m² apartment using EAC (Electricity Authority of Cyprus): $130/month.
- Monthly membership at the FitLab Limassol gym: $40.
- Ticket to a film at the Rialto Theatre: $10.
- Local wine bottle (Maratheftiko variety): $20 at a winery in Limassol region.
Neighbourhoods
We want to show information in a way that is easy to understand. That's why we made a summary table that lists all the neighborhoods in Limassol. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Agios Athanasios | Agios Athanasios is a modern and well-developed neighborhood with a mix of residential and commercial areas. | Good infrastructure, close proximity to amenities, and diverse housing options. | High property prices, traffic congestion during rush hours. |
Agios Ioannis | Agios Ioannis is a lively area with a blend of residential properties and commercial establishments. | Convenient location, easy access to public transport, and a range of shops and restaurants. | Can be noisy and crowded, limited green spaces. |
Columbia | Columbia is an affluent neighborhood known for its luxurious residential properties and prestigious schools. | Upscale living, exclusive amenities, and a safe environment. | High cost of living, limited affordable housing options. |
Fasouri | Fasouri is a tranquil area with a mix of residential spaces and agricultural land. | Peaceful surroundings, close to nature, and potential for farming activities. | Limited commercial infrastructure, some areas may lack full amenities. |
Germasogeia | Germasogeia is a popular coastal area with beautiful beaches and a vibrant nightlife. | Stunning sea views, numerous leisure activities, and lively atmosphere. | High demand for housing, some areas can be crowded during peak tourist seasons. |
Katholiki | Katholiki is an up-and-coming neighborhood with a mix of residential and commercial properties. | Affordable housing options, improving infrastructure, and proximity to the city center. | Some areas might still be undergoing development, lack of established community facilities. |
Lemesos City Center | The city center of Limassol, bustling with shops, restaurants, and cultural attractions. | Rich cultural scene, excellent shopping, and entertainment options. | High levels of noise and traffic, limited green spaces. |
Linopetra | Linopetra is a well-established neighborhood with a mix of residential and commercial developments. | Good schools and medical facilities, diverse housing choices, and convenient transportation. | Can be densely populated in some areas, potential noise pollution. |
Mesa Geitonia | Mesa Geitonia is a vibrant area with a mix of residential and commercial properties. | Abundance of shops and restaurants, well-connected by public transport. | Traffic congestion during peak hours, limited green spaces. |
Mouttagiaka | Mouttagiaka is a coastal neighborhood known for its luxury beachfront properties and tourist attractions. | Beautiful beaches, entertainment options, and great sea views. | Higher property prices, crowded during tourist seasons. |
Neapolis | Neapolis is a diverse neighborhood with a mix of residential and commercial areas. | Close to the sea, plenty of shops and restaurants, and a lively atmosphere. | Some parts may be less developed, limited parking in certain areas. |
Panthea | Panthea is an upscale residential neighborhood with stunning views of the city and the sea. | Luxurious properties, quiet surroundings, and proximity to essential amenities. | Higher cost of living, limited public transport options. |
Potamos Germasogeia | Potamos Germasogeia is a popular area with a mix of residential and tourist-oriented establishments. | Close to the beach, numerous dining and entertainment choices, and vibrant nightlife. | High demand for rentals, potential noise and crowds during tourist seasons. |
Pyrgos | Pyrgos is a coastal village with a mix of traditional and modern properties. | Peaceful and close to nature, charming village atmosphere. | Less developed infrastructure, limited public transport. |
Trachoni | Trachoni is a residential area with a mix of houses and apartments. | Relatively affordable housing options, peaceful surroundings. | Less variety in amenities, may require a longer commute to the city center. |
Ypsonas | Ypsonas is a growing suburb with residential and industrial zones. | Affordable housing, easy access to major highways, and proximity to schools. | Industrial areas may cause noise and pollution, limited green spaces. |
Life in Limassol
Limassol is the second largest city in Cyprus and is known for its bustling financial and services sector. It has a thriving economy with a high concentration of international banks, law firms, and shipping companies.
What expats usually like the most in Limassol is the vibrant nightlife with a wide variety of bars and clubs, as well as the stunning beaches and Mediterranean climate.
Access to healthcare in Limassol is good, with a Healthcare Index of 52. An effective healthcare infrastructure always boost the appeal of a place, which is good for real estate.
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Renting out in Limassol
For those aiming to buy property solely for renting out and earning income.
Long-term
Tenant Profiles in Limassol
According to the data reported by Wikipedia, the home ownership rate in Cyprus is 70%, which is average.
It means that, if you decide to buy and rent out in Limassol, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target professionals, young couples, and families looking for a permanent residence in Limassol. Short-term tenants may include business travelers, tourists, and students looking for a place to stay for a few months.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Limassol City Center | Professionals, expats | Central location, amenities | $600 - $1200 |
Villa in Agios Tychonas | Families, luxury renters | Sea views, upscale living | $1500 - $4000 |
Apartment in Germasogeia | Professionals, young couples | Modern, close to amenities | $800 - $1500 |
Studio in Neapolis | Students, singles | Convenient location, affordable | $500 - $900 |
Apartment in Agios Athanasios | Professionals, families | Quiet area, city views | $700 - $1300 |
House in Pyrgos | Families, expats | Suburban living, spacious | $1200 - $2500 |
Apartment in Mesa Geitonia | Professionals, commuters | Easy access to city | $600 - $1200 |
Rental yields
These days, Limassol presents attractive opportunities in terms of rental yields. In fact, you can easily achieve yields above 9% due to the city's high demand for rental properties and the competitive rental market.
In Limassol, properties located in up-and-coming areas with a good mix of amenities such as schools, shops, and transport links tend to offer the best rental yields, since they are attractive to tenants and therefore have a greater demand. Additionally, properties located close to the city centre also tend to offer higher yields, since they are in high demand for those looking to be close to the amenities of the city.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to business travelers, seasonal workers, or vacationers looking to explore the city of Limassol. Additionally, many students and interns come to Limassol for short-term stays, and could be potential tenants.
If you decide to go with that option, look for properties in the touristy areas of Limassol, such as the Amathus Avenue, the seafront promenade, and the old town. Additionally, the city center and the coastal towns of Yermasoyia and Parekklisia are also great options for short-term rentals.
There are approximately 415 active Airbnb listings in Limassol, reflecting a dynamic short-term rental market. The average daily rate stands around $91.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Limassol can make around $1300 per month. Also, the average occupancy rate is estimated at 84%.
Is it worth buying real estate in Limassol then?
Buying a property in Limassol can be a fantastic decision if you're in it for the long haul.
Limassol offers an attractive property price-to-rent ratio, meaning you can potentially buy a property with just a decade's worth of rental payments.
The city's economic outlook is positive, with expected GDP growth and increased demand for properties. Plus, property prices are relatively affordable compared to many European cities, making it an excellent investment opportunity.
If you're interested in rental income, Limassol's competitive market can yield returns above 9%. Short-term rentals, like Airbnb, are also a lucrative option, with an average daily rate of $91 and potential monthly earnings of around $1300.
However, it might not be the right choice for everyone. If you're planning a short stay in Limassol, buying a property may not be financially sound due to substantial transaction costs. Additionally, Cyprus's history of unclear title deeds and potential structural issues in some areas require meticulous due diligence.
Complex zoning laws could limit your property development plans, and crowded tourist seasons might bring noise disturbances. Fluctuations in foreign investor interest can also affect resale values.
So, while buying a property in Limassol offers significant advantages, it's essential to consider your specific circumstances and objectives carefully, seeking local advice and conducting thorough research to make an informed decision.
Make sure you understand the real estate market in Limassol
Don't rush into buying the wrong property in Cyprus. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.