Commercial property for sale in Larnaca

Commercial Real Estate in Larnaca: Investment Attractiveness

Larnaca in Cyprus was considered a quiet tourist haven with a measured rhythm of life for a long time. However, year by year, the resort is developing and gradually becoming a business environment for business people and IT specialists. There is new commercial real estate in Larnaca, allowing to implement business ideas of any scale.

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Why is Larnaca attractive for business?

Larnaca airport is of strategic importance. The city is called the air gateway of Cyprus. There is another airport on the island — in Paphos, but it is Larnaca that receives guests from all over the world, and its airport is the largest and covers routes to almost all points of the world.

Business visitors of Cyprus arrive here, and of course, it turns out to be very convenient to stay for a business meeting or conference in the city of their arrival. Therefore, the municipality of Larnaca has gladly accepted the proposal to build a new marina and port and new commercial buildings for offices, stores, restaurants, innovative hubs, and co-working spaces. In addition, many businesses are forming or relocating to the island, increasing the demand for commercial real estate.

For example, about 1,000 new companies are registered in the country every year. As of 2022, more than 220,000 companies are registered in total, and the purchase and sale of businesses retain their popularity. This shows that Cyprus is in demand, and commercial real estate is also in order — both needed to start a new company (offices and buildings) and buy a business (stores, restaurants, hotels).

Larnaca is also a popular resort, mainly for families. The city is home to about 75 thousand locals, but the number of tourists annually reaches almost 500 thousand. This tourist flow generates demand for service businesses: stores and stalls, entertainment, restaurants, cafes, bars and pubs, nightclubs, dance, and sports grounds.

The construction of the new technological marina and port is already leading to an expansion of the real estate market and an increase in prices for properties on the front line of the built infrastructure. The future know-how is expected to increase the demand for rental villas and apartments close to the marina and port several times. Therefore buying property in Larnaca for investment promises a high projected ROI and a reasonably short payback period.

Buying commercial real estate in Larnaca, Cyprus, is:

• optimization of taxation through low tax rates (12.5% corporate tax and the ability to pay only 2.5% for IT companies under the Ip-box program);
• absence of double taxation in 67 countries, including Ukraine and Russia;
• high liquidity of real estate due to the stable growth of the real estate market and prices for three years in a row — if you buy the object now, you can be sure that after a while, you will sell it for much more;
• high demand for tourist and business properties with an average ROI of 8%. In a few years, some properties are expected to have an ROI of 25-30%;
• a wide range of properties for commercial purposes, both at the planning stage and those that are already ready businesses;
• with an investment in real estate of 300,000 euros or more, the investor receives the opportunity to accelerate the registration of permanent residence in Cyprus for himself and his family.

Thus, purchasing Cypriot real estate has many advantages and brings profit. However, success depends on initial conditions and fundamental approaches — market analysis, competitors' products, risk calculation, and the most realistic situations. SPM Real Estate specialists can conduct a full-scale analysis and create a customized business model for you.

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Types of commercial properties in Larnaca

Commercial real estate in Larnaca is represented by the most famous objects in the city:

• offices;
• buildings;
• stores;
• restaurants/cafes;
• hotels;
• residential facilities (complexes, villas, apartments).

Also, the purchase is possible at various stages of construction:

• the planning stage, when there is only a construction plan;
• at the level of the foundation pit, that is, at the very beginning of construction;
• after construction at the finishing stage;
• finished object.

Commercial real estate is often part of a multifunctional complex, such as a tower with premium apartments, part of which is allocated for service facilities — stores, restaurants, a gym, a meditation room, etc.

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Price of commercial real estate in Larnaca

The price of a property in Cyprus is formed considering many factors, such as proximity to the first coastline and city location. For instance, in Limassol or Nicosia, prices are 40% higher than in other regions.

Let's name the main factors that affect the price of commercial real estate:

• location — the closer to the sea, the more expensive. In Larnaca, the new marina and port are also such criteria;
• investment model — the projected ROI, payback period, profitability, and the more successful the model, the more expensive the object will be;
• indoor and outdoor space, number of floors, the height of ceilings;
• the presence of a developed infrastructure network nearby; if infrastructure facilities are part of the complex, it will affect the price;
• the surrounding area and its landscaping (park, promenade, alleys, landscaped garden, etc.)
• technical characteristics and equipment — whether there is a security system, air conditioning, underfloor heating, video surveillance, etc.;
• quality of materials used in construction, expertise, and rating of the builder;
• the stage of the project — planning, excavation, construction, finishing, or a completed business;
• the primary or secondary market;
• the type of facility — of course, the cost of the apartment hotel will be different from the cost of the store.

You can see the prices of properties in our catalog.

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How to choose an efficient commercial property on the island?

Efficient real estate is the one that quickly pays off, is profitable, liquid, and high-margin.

Perhaps you want to buy a ready-made business in Cyprus — then it is easy to assess its investment efficiency because it has been in operation for some time, brings profit, and has a stable customer base.

Suppose you are looking for a new business to invest in, for example. In that case, if you want to buy a hotel in Cyprus, open a store, or buy an entire building to rent as office space, then you must build a business model because it will help you understand whether your business will be profitable.

When choosing a location for a successful business, you need to consider the specifics of the city and the area — this determines the demand for a particular service. Hotels and restaurants are in order on the tourist promenade, but offices and stores are better located in central areas of the city.

Our experts have lived and worked on the island for over 10 years, so they can help you find the best location and build a customized business model.

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The advantages of investing in real estate in Cyprus

Buying real estate offers you several advantages at once:

• stable economic growth every year;
• some of the lowest taxes in the European Union (under the IP-box program, IT companies can pay tax at a rate of only 2.5%);
• high return on investment with an average ROI of 8% per annum;
• the real estate market has been growing steadily for 3 years in a row, resulting in higher prices and liquidity;
• high level of security, making Cyprus ranked 5th in the world on this parameter;
• high standard of living — the country is a member of the European Union, a member of the Eurozone, governed by British law;
• get a permanent residence permit quickly, as if you buy a property for €300,000 plus VAT, you will get a permanent residence permit in Cyprus on an expedited procedure for 2 months. After 7 years, you can become a citizen of the country.

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What other properties can I buy in Cyprus?

Commercial real estate in Cyprus is represented by a variety of objects in which you can invest:

• stores;
• shopping centers;
• cafes, restaurants;
• hotels and apartment hotels;
• medical clinics;
• kindergartens and schools.

You can also buy a residential property in Cyprus, which can be used for living and rent, which pays off well during the beach season and all year round for a long-term lease.

The following properties represent residential real estate:

• apartments, also called apartments, are located in apartment complexes and most often include 1 to 3 bedrooms;
• townhouses — are apartment buildings, but each dwelling has its entrance from the street and is only joined by two side walls;
• villas are detached houses, often on 2 floors, with their territory, private pool, and recreation area;
• semi-detached villas — this type is similar to a townhouse, but the difference is that the house may have only two owners, each apartment has a separate entrance, and with the neighbor in common, only one wall.

Contact SPM Real Estate and buy Cyprus real estate to make your dream of a beautiful life come true!

SPM Real Estate is your most valuable contact in Cyprus.

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