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The political instability with the ongoing wars between Russia and Ukraine, and also the threats of Iran to go to war with Israel, have alerted the biggest and strongest Nations and are affecting the world economy in a bad way. The annual inflation rate in Cyprus edged up to 2.9 percent in June 2024, the highest in eight months, from 2.7 percent in the previous month.
This may seem a bad time to invest, but this is not the case for Cyprus.
Inflation brings opportunities, especially for investors who do their homework and dare to invest. The earlier you invest, the faster you can capitalize on the investment. Inflation means that your money is losing value just sitting in the bank. Saving and investing are two different things and both are very important for now and the future.
Already a popular destination for investors worldwide, the Cyprus economy is on the rise showing great potential.
The trend is to invest in Larnaca, a charming coastal city in Cyprus, which offers a blend of rich history, and stunning seaside views and stands out for its unique architecture.
The Gross Domestic Product (GDP) expanded by 0.70 percent in the second quarter of 2024 over the previous quarter. The GDP Growth Rate in Cyprus is expected to be 0.70 percent by the end of 3rd quarter (Q3), according to the Trading Economics global macro models and analysts’ expectations. In the long-term, the Cyprus GDP Growth Rate is projected to trend around 0.70 percent in 2025 and 0.40 percent in 2026, according to our econometric models (source: Trading Economics).
Many business sectors like the Foreign Exchange Market companies, (Forex), Fintech, and High-tech companies have chosen Cyprus as a strategic place to invest and base their business headquarters.
So, the question is not “if” you should invest in Larnaca, but “where exactly” you should buy your property. In this article, we have gathered the most exciting locations in Larnaca that will help you decide where to buy a house or apartment based on your primary focus, needs, and future expectations. Whether you want to settle down in a quiet neighborhood, or just see your investment rise in value, this article aims to answer a lot of your questions.
In Larnaca, Cyprus, a lot of locations are high in demand due to their location, proximity to the coast, easy highway access that connects all major cities, amenities, and a blend of a laid-back lifestyle with business opportunities that were created from the decision of high-tech giants to move their base to Larnaca city.
Here are the most sought-after locations:
1. Larnaca City Center (Foinikoudes/Agios Lazaros)
The city center is always high in demand, and is appealing both to locals and expats. A blend of a vibrant and relaxed lifestyle combines the convenience of having all amenities close to your house like the airport, restaurants, cafes, and the Larnaca Marina, with living in a city characterized by a unique architectural history. The “Archeological site of Kition”, the “Larnaca Medieval Fort”, “Agios Lazaros church” and the Muslim “Halan Sultan Tekkesi” located next to the Larnaca Salt Lake are honorable mentions. It is worth mentioning, that the city mall, the hospital, and private schools are only a 10-minute drive.
When the flamingos visit, it is one of the most beautiful sceneries on Earth
2. Mackenzie
Located near the Foinikoudes beach, this organized beach is world famous for its nightlife. It attracts people from all over Cyprus and tourists, that seek to visit an organized beach where you can find bars, cafes, and restaurants right next to the seashore. You can enjoy your drink with a beautiful sea view and even take a break for a swim. Especially good for investment since it has the most popular beach both for tourists and locals.
3. Kamares/Krasa
One of the areas experiencing the biggest growth among locals. This fast-developing area is becoming increasingly popular, especially among young couples who wish to buy residential land. It may be worth going the extra mile to purchase a house or an apartment if you are looking for a family-friendly neighborhood.
4. Livadia
A prime location if you want easy access to the highway, especially if you work in Nicosia. Has experienced rapid growth over the last few years, especially from foreign investors who have found a business opportunity and have created huge projects that consist of luxury villas and apartments but also commercial properties. It is also popular with locals who may work in Nicosia and prefer to buy more affordable land, be close to the seaside, and avoid getting stuck in traffic when going to work every day.
5. Aradippou
A growing area for real estate in Larnaca. Although slightly inland compared to some other coastal areas, is still considered for many years to be one of the most prestigious and developed areas in the city of Larnaca. Strategically located between Larnaca city center, and the airport, and with easy highway access, it is convenient for those who travel frequently either abroad or to Nicosia but prefer a quieter residential setting and relaxed lifestyle. Recommended for families and young couples, Aradippou has seen significant improvement in the infrastructure, connecting it with the other major cities which are Nicosia and Limassol. A unique characteristic is the large number of very big houses that you will find in the area.
6. Oroklini
The area with the biggest development of Larnaca is currently the geographical district of Oroklini, where there are ongoing investments that far exceed €200 million, with the demand ever increasing. Together with Livadia are two of the most sought-after areas of the city with the main difference being that Oroklini has a lot of beaches where investments have been made, including the two hotels (Radisson and Mercure beach resorts). Finally, the removal of the oil tanks sparked the interest of investors. More big projects are already underway with a new 5-star hotel, and a shopping boutique center are some of the projects that are bound to happen soon. There are also ongoing discussions about some private universities moving to the area but nothing official yet.
7. Dromolaxia – Meneou
A perfect location to buy affordable housing especially for those seeking a quieter, village lifestyle, while being close to the beach and just a few kilometers away from the fuss and pollution of the city center. Many investment projects like the Public Library, the multipurpose center of the municipality, and the restoration of the municipality’s square are promising to say the least.
Dromolaxia and Meneou have seen vast development in recent years, especially for home buyers who seek suburban environments. Offers a good balance between rural charm and modern conveniences.
8. Tersefanou
The most affordable and underrated locations compared to other locations in Larnaca, has seen several new projects and residential developments, including modern and luxury apartments and villa complexes. Proximity to Larnaca City and the airport in combination with affordable housing is the reason the investment demand was so high. There were plans for big investments and even a golf resort, but some problems with licensing have paused or delayed growth in these areas (For now). You never know when they will restart the project. If you are looking for a long-term investment for a fraction of the price you would pay in other more prestigious areas in Larnaca, this is exactly what you should be looking for.
When searching for an area to invest in Larnaca, it is very important to have a clear understanding of your objectives and needs. For long-term investment and consistent rental returns, buying a house or apartment in areas like the airport or the city center, are assets that are always going to be in high demand. Areas such as Dromolaxia and Tersephanou are relatively cheaper but are likely to appreciate very soon. If you are in search of a vacation home or a holiday rental, Mackenzie Beach and Meneou have the best of both worlds with great coastal living and lots of tourists. In all, your decision should be within your budget, your wants and needs, your preferred lifestyle, and your plans for the investment while constantly monitoring infrastructural development and other prospects in Larnaca.