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By Panos Danos
CEO Danos / BNPPRE Group
The Limassol property market is undergoing a strong surge, with high demand for prestige residential and commercial property – which will inevitably lead to a shortage of high-value homes and offices. Several tower developments are currently in the development pipe line or in the conception stage.
Cyprus has a small commercial real estate market, both in terms of occupier and investor demand. Transaction volume is limited to acquiring units for own use, with few exemptions of local institutional or overseas investors, typically high-net-worth individuals, interested in income-producing assets.
Limassol’s key commercial locations are considered to be 28th Octovriou Avenue, the coastal road artery of Limassol, as well as Georgiou Griva Digeni and Gladstonos are considered to be road arteries that are also experiencing the influx of local and multinational firms and the upcoming of significant commercial developments such as The Oval.
The Lanitis seafront development, a new addition to Limassol’s skyline along the city’s coastal strip is expected to finish soon. The project which costs EUR 150 million has been erected on the site of the old Lanitis mansion.
Pafilia signed a EUR 77 million construction contract with J&P and ACC to proceed with the Construction of ONE, the tallest residential seafront tower in Europe ONE will be visible from anywhere in Limassol.
Olympic Residence has already introduced new luxury standards in Limassol. This residential project consists of two impressive towers.
Del Mar Sea Front development offers exclusive seafront living with a 5 star hotel-style facilities, amenities and services.
Other important developments include, three 18-hole golf resorts a rehabilitation medical resort and the Limassol Marina with 162 luxury apartments and 74 villas with private docking berths, Porto Bello unique commercial development and the high quality Paris Business Centre.
Trends for relocation and take-up for office space in key locations is increasing the demand setting the bar a bit higher for both capital values and rents. Based on Market Research of Danos/BNP Paribas Real Estate, it is anticipated that the demand for office space in Limassol is 20,000 sqm per year.
According to Danos/BNP Paribas Real Estate, the average market value of a Grade-A seafront/sea view office space in q1 2017 is EUR 9,000/sq.m. whereas the average market value of a Grade-A secondary location office space is EUR 4,500/sq.m.. The market values both in seafront/sea view office spaces and prime locations in 2016 remained constant compared to 2014 and are expected to stay at the same levels for 2017.
In June 2017, Lanitis Bros announced the launch of an open tender procedure for the sale of a land with a total surface of 34,462 sq.m. next to the Marina, which is expected to attract significant interest from developers and investors.
