Published on 02 Jul 2022, 18:10
Any Cyprus real estate expert worth their salt when asked what they think of the Larnaca real estate market will say that it is all but guaranteed to experience explosive growth over the next couple of years. Up till now, property in Larnaca has been somewhat affordable and anyone with access to a fair amount of funding could purchase a piece of real estate in the city. However, real estate experts are saying that now is the time to get your hands on a piece of Larnaca before prices shoot up due to how quickly the city is developing. The New Marina Project and some new high-rise buildings are expected to drive prices up within the next few years.
The New Marina Project is a 1.2 billion euro project which is widely considered the biggest infrastructure investment in Cyprus. The aim of the project is to improve the infrastructure of the Larnaca marina, improving roads and expanding the Marina. The project is expected to take 12 years to complete and has been split into 4 phases divided over the years. The first phase is expected to take about five years and will lay down all the foundational infrastructure including things like new roads. The first phase alone is expected to make a world of difference regarding property value over the next two years and the project, once it is complete, will benefit the local economy by over a hundred million euros every year and such a large scale infrastructure development project is guaranteed to drive property prices through the roof as buyers and investors from far and wide see the substantial work that is being done to improve the city’s appearance and accessibility.
Real Estate experts in Cyprus are already looking at the first stage of the project with high hopes believing that within the first three years we will begin to see the price of property in Larnaca go up. The project is being undertaken by Kition Ocean Holdings, a Cypriot-Israeli consortium that won the tender after presenting their eco-viable plans to the Larnaca municipality.
The first real estate project that will drive prices up in Larnaca is the construction of the Kition Tower which, once construction is complete (2023), will be among the tallest buildings in Larnaca with 22 floors. Each one of its 50 residential units will cost several million euros with the most expensive costing 12 million euros plus VAT. The project is being undertaken by Quality Property Developments, a privately owned Cyprus based property development company with a wide range of projects currently underway. The Kition Tower is by far their most notable and their most ambitious, however. Some of its exclusive luxury apartments are already on sale in Larnaca.
G&P Lazarou, one of the most reputable real estate agencies in Cyprus, is already looking at selling one of the most expensive apartments to ever go on sale in Larnaca. Located on the 22nd floor of Kition Building, the apartment offers 5 bedrooms, 6 bathrooms and an excellent view of the sea. A luxury apartment on the top floor of the tallest building in the city of Larnaca, which is widely considered to be the central hub of real estate development and business in Cyprus, is not cheap and its record breaking 12 million euro price tag is expected to drag the prices of properties in the area up by quite a bit. The new Kition Tower will become the landmark that identifies Larnaca as it towers over the entrance of the Finikoudes promenade overlooking the city. The grand, majestic exterior is matched by the building’s interior where brands like Fendi, Versace and Zaha Hadid are all present and accounted for.
The Kition Building will outdo almost every other luxury residential building in Larnaca in a number of ways. Currently the top floor apartments in Atlantis and Althea Towers, both in Mackenzie area, seems to be the most lavish apartments in Larnaca. Once the Kition project is complete, this position will belong to the building’s top floor apartment. Some might say Kition has already overtaken Atlantis and Althea as its penthouse apartment is already up for sale. Once Kition is complete, however, every piece of property on every “most expensive” or “most exclusive” list will suddenly shoot up in terms of value.
Soon after the completion of Kition Tower, another project is set to become the next big thing in Larnaca and that is the Staston Project. The Staston project consists of two residential towers and a hotel and was recently greenlit by the environmental authorities. Each of the two towers will be even taller than Kition once construction is complete (2024-2025). Tower A will have 27 floors while Tower B will have 25 floors. The two towers combined will provide a total of 97 apartments, each expected to cost millions of euros and, like the Kition Tower before it, drive property prices through the roof in the surrounding area.
Staston Project is going to be developed on Makarios Avenue in the Chrysopolitissa area which is located halfway between Larnaca central police station and the port roundabout. The site was historically owned by the Demetrious family as the Cyprus Umber Industrial Co. from the 1920s. It used to process the ‘terra umbra’ red soil which would then be exported to dye companies. Currently, the site is owned by a company called Omikro Ktimatiki LTD and they are the ones behind the Staston Project.
Larnaca is due for massive growth over the coming decade but the next three years stand out in the minds of many people with a vested interest in the Cyprus real estate industry as an upcoming period of unprecedented economic growth and never before seen price hikes. The Marina Project, Kition, Staston and any of the dozens of other projects currently underway across the city will have the effect of attracting wealthier investors who, in turn, will have the effect of causing prices to go up as they buy properties for more than anyone might have thought possible a few years ago. The best time to have invested in property is yesterday but now is by far the best chance anyone could have to purchase property in Larnaca before the massive jump in prices occurs. Multi million euro apartments are quickly becoming the norm in Larnaca and many believe that the city has barely begun to scratch the surface of its potential.
While speaking to Scala about the new projects and how they are likely to affect real estate prices in Larnaca, Mr Paris Michaelides of G&P Lazarou Estate Agents had this to say, “Even if the most expensive apartment in Kition Tower is top of the range in the heart of Larnaca, I don’t have the feeling that this property will be sold within the next two years. The war in Ukraine will affect sales especially in this coming winter. I strongly believe that after three years from today, many big companies will come to Larnaca and this will bring high quality customers”
Mr Michaelides is one of the many real estate experts that are watching Larnaca and patiently waiting to see how some of the massive projects currently underway in the city irreversibly change the real estate industry in Larnaca.
"One of the reasons behind our decision to invest heavily in Larnaca by developing more than 38 projects is the promising city of Cyprus. This city is strategically located on the island, hosts Cyprus’ main International Airport and with the New Marina project it is growing into a new hub of promising investments" (Georges Chehwane, founder of Plus Properties)