Commercial Real Estate in Limassol: Investment Attractiveness

The city of Limassol in Cyprus is called the business heart of the country. It is here that IT professionals, investors, and entrepreneurs from all over the world and the former CIS countries flock. It is a big city with a boisterous flow of life, which resembles Los Angeles: sun, beach, promenades, and glass skyscrapers, in which the deals with extensive checks are done. Therefore commercial real estate in Limassol is not just in demand but is a hot trend throughout the city's history and, over time, does not fade but only gains in the market. We will consider the main advantages and peculiarities of buying business real estate in this city below.

Why is Limassol attractive for business?

Cyprus is rapidly transforming from a pure tourist destination into a business and investment environment — a haven where your assets are safe. Cyprus' economy has been growing steadily for the past few years, recovering from the post-crisis crisis. Today it is recognized as the fastest-growing economy in Europe.

Each year the island registered about 1000 new companies, some of which — relocated from other countries, which moved the business to Cyprus to optimize the taxation and create a safety cushion for their business.

The main center where companies and investors flock is Limassol, with most expats coming from the CIS countries. For this reason, this region has the largest Russian-speaking diaspora on the island, with over 50,000 people, while the total population is just under 260,000. Adapting to this city will be easy, as Russian is heard everywhere, and services are available in your native language.

Since most relocating companies bring their staff to the island, it generates a high demand for commercial real estate in Limassol and apartments and houses for rent in Cyprus near the city.

It is also one of the most popular resorts on the island. Before the COVID-19 pandemic, the annual number of tourists was about 4 million, but the pandemic made adjustments, and there was a significant drop. However, in 2021 the situation began to level off, and last year 2 million tourists visited the island, which will grow.

Limassol has a highly developed tourist sector with many hotels, restaurants, entertainment, nightclubs, and other services.

The city covers the needs of businesses, both from the side of tourism and the side of the activities of companies. Selling hotels in Cyprus or buying office buildings for rent is profitable.

Buying commercial real estate in Limassol has the following advantages:

  • purchase of profitable business due to the stable growth of the real estate market and rental prices for 3 years in a row;
  • tax optimization, as Cyprus has one of the lowest tax rates in the EU (12.5% corporate tax);
  • preferential Ip-box program for IT companies, under which it is possible to pay only 2.5% tax;
  • absence of double taxation in 67 countries, including Ukraine and Russia;
    the average ROI for tourist and business objects of 8%, but after 2023 the ROI is expected to grow to 25-30% for some things;
  • obtaining a permanent residence permit of Cyprus under an accelerated procedure for purchasing real estate worth 300,000 euros or more, including VAT.

Thus, the purchase of Cypriot real estate has a lot of 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.

What commercial real estate can I buy in Limassol?

Commercial real estate in Limassol:

  • class A office buildings with space for offices, co-working spaces, and innovative hubs;
  • commercial buildings for multifunctional purposes;
  • premises for stores, shops, and boutiques;
  • facilities for shopping and entertainment centers;
  • restaurants, cafes, pubs, taverns, bars, and clubs;
  • hotels, apart-hotels, hotels, hostels;
  • medical clinics and wellness centers;
  • nursing homes;
  • kindergartens and schools;
  • residential facilities (villas, apartments, apartment complexes, villa complexes, mixed-use complexes).

The stages of construction at which it is possible to buy property in Cyprus:

  • planning;
  • excavation;
  • finishing after construction;
  • 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.

How much does it cost to buy commercial real estate in Limassol: the price and how it is formed

The price of real estate in Cyprus in Limassol varies greatly depending on the type of object and many other factors. You can buy a store for 200,000 euros and a high-rise tower with residential and commercial units, the cost of which can exceed 5 million euros. It should also be noted that Limassol is one of the most expensive cities in Cyprus, and prices there can be 40% higher than in other regions.

The following factors influence the price of commercial real estate in Limassol:

  • location — objects on the first line by the sea are more expensive than those in the center or on the opposite side of the promenade. The promenade is not only a tourist area but also the location of the business flow;
  • Investment model — the more successful it is, the more expensive the object is valued, taking into account the projected ROI, payback period, and rate of return;
  • type of facility — a tower, shopping mall, or boutique hotel will cost more than a small store or coffee shop;
  • space — the amount of indoor and outdoor space, the number of floors, and the height of the ceilings;
  • Infrastructure — if the infrastructure is part of the complex, it will affect the price;
  • surrounding area — availability of park, walking area, landscape garden, food court, shopping zone, etc.;
  • technical characteristics — technological sophistication of the building and built-in systems: security system, air conditioning, underfloor heating, video surveillance, concierge;
  • project implementation stage — a ready-made business is much more expensive than buying a building at the design or excavation level;
  • primary or secondary market, but the purchase on the secondary market may be more costly due to future renovation works.

You can see the real estate prices in our catalog.

Investing in Cyprus real estate: the advantages of buying and moving to the island

We have already discussed the benefits you will receive if you buy a property in Limassol. However, after visiting the island, many of our clients decide to stay here, and purchasing real estate opens up opportunities to do so. So what will a move to Cyprus bring you through an investment in real estate?

Advantages of moving to Cyprus:

  • high standard of living in a country belonging to the European Union and Eurozone, which is governed by British law;
  • high level of security because Cyprus is ranked 5th in the world according to this parameter;
  • a clean environment, as there are no big enterprises on the island polluting the air or the soil;
  • quality products, local fruits, and vegetables are diverse, tasty, and fruitful all year round;
  • the UN ranks Cyprus as the 4th best place in the world for living with children;
  • high-level education from kindergarten to university. The availability of English schools, which are cheaper here than in other countries;
  • 330 days of sunshine a year, warm Mediterranean Sea, perfect beaches.

What other properties can I buy in Cyprus?

In addition to commercial, you can also buy a residential property in Cyprus, which can be used for both accommodation and rent.

Objects represent residential real estate:

  • apartments (apartments);
  • townhouses
  • villas (houses);
  • adjacent villas.

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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We, SPM Real Estate team, provide our users with reliable and comprehensive information concerning buying and renting residential and commercial real estate, as well as covering variety of domestic and legal issues.

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