“The number of students and workers rose in Limassol partlyas a result of the relocation of companies with their staff,” said PericlesMarkaris, a Limassol-based property valuer in a telephone interview onThursday. “There are a lot more forex firms, shipping, investment, law,accounting and business services companies now in the town. Demand for housinghas increased while supply failed to cope over the past crisis years”.
As many cannot afford to purchase a new home, they resort torenting one which in turn drives rent prices upwards, Markaris said. Accordingto 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 anannual 26 per cent and 22 per respectively, against an island-wide increase of8.3 and 10 per cent, also respectively. Also, prices for both apartments andhouses rose in Limassol more than 10 per cent in April to June compared withthe respective quarter of 2016. By comparison, flats became in Cyprus onaverage 6.2 per cent less affordable while house prices rose 4.7 per cent, accordingto RICS. In the second quarter this year, apartments and houses were rented atan 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 yearsbefore, a tenant would have to pay €4.38 or €2.49 per square meter for a flator house respectively in Limassol, compared to €4.33 and €2.33 in Nicosia. Alarge number of companies have arrived bringing also its workers who are in nocase low earners and receive a monthly salary of €2,000 or €3,000. They arelooking for modern, high quality apartments and are willing to pay €1000 ormore for a two-bed room flat.
Rising prices and rents offer new opportunities thatinvestors will seek to use. Limassol is preparing for the construction andoperation of a casino, which is expected to create 4,000 new jobs. Thissituation prompted entrepreneurs to plan new projects, which will take up tothree years.
The latest data on building permits show that in Limassolnew housing and non-residential projects that received a green light from theauthorities increased by 58 percent in area over the first eight months of theyear. Last year, the area of licensed projects in Limassol grew by 52%compared to 19% on average in Cyprus.
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