Property rents in Limassol have increased by around 25 percent over the past two years, much higher than other cities in Cyprus.
According to statistics, an average two bedroom flat twoyears ago cost €400 a month. By 2017, it was averaging €600. It is now €900. Ifapartment is near the sea, add another 30% to these prices.
Online searches show rents at staggering figures – anywherebetween €1,000 and €2,500 for a two-bedroom apartment. Contrary to other citieswhich attract foreigners, Limassol is an upmarket destination. It’s notProtaras which has tourists visiting only for summer, Limassol is attractingpeople for more than just entertainment but work. New hotels and casino arebeing built, cruises are arriving at the port – all these investments bring money.
Also home to shipping companies, forex companies andinternational banks Limassol has attracted foreign nationals with a lot morecash in their pocket whose demand for a place to stay is bringing up prices.
A German for example working in the shipping industry inCyprus, doesn’t get a salary of €1,500. He gets anywhere between €2,000 –€3,000. He therefore can afford to pay more rent. This pushes prices up,pricing out those on an average Cypriot salary.
Limassol has also become a major magnet for those takingadvantage of the citizenship-for-investment scheme. This has had a knock-oneffect on the rental market even though the main focus is property sales. Thepassport scheme has 100 per cent contributed to the increased demand.
Chairman of the Cyprus Scientific and Technical Chamber(Etek), Stelios Ahniotis, said the effects this is having on society arebecoming increasingly visible.
“Before, we used to see our youth wanting theirindependence, moving out and living together when they were in a relationship,”he said. “Now, they’re starting to move back in with their parents,” livingwith one or the other’s in-laws.
Those who are struggling to afford to rent in Limassolproper are being forced to move further towards the west in areas such asYpsonas, Polemidia and Kolossi or to the eastern part of the city.
This is increasing the suburbanisation effect, populationsshift from central urban areas to suburbs. Moving further out of the centre,however, likely means extra spending on transport. Exasperated and frustrated,some are finding solace in humour. A post on Facebook of a decrepit barn-typehouse, comes with the caption: “house for rent in Limassol. Only €1,780.”