Limassol can be described as the most varied Cyprus property market. It is the second largest city in Cyprus and it has developed its own commercial and property market and as a coastal resort it has developed a prosperous holiday property market.
A major engine of the Limassol property market was the Russian multinational off-shore companies that appeared in the 1990s.Since then Limassol became the center for hundreds of off-shore companies and this has been the reason for the thousands of Russians who have moved to the Island.The Russian community mostly consists of wealthy people who play an essential role in the commercial and residential property market. The demand for holiday villas in Limassol is formed mainly by Russians, with a large contribution also from the English and Arab markets.
Residential and Commercial property prices are about 10% lower than in Nicosia and prices for holiday properties range from about 5% to 10% lower than in Paphos and about 10% to 15% higher than in Protaras and Larnaca. Limassol offers long-term rental contracts for commercial and residential properties in the city and short-term contracts for holiday property during prime summer months.
Investor activity does not seem to be that strong since Nicosia is favored for higher returns on investment and better short-term prospects for commercial and residential rental contracts.
Holiday property investors seem to have a preference to Protaras and some areas in Larnaca due to superior facilities as holiday destinations and a higher demand for privately owned holiday villas. In addition, properties in Protaras and Larnaca have lower prices than comparable properties in Limassol.
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