Articles
Corporate lettings on the increase in Cyprus
As published by Fly2 Let
Date: September 2008
One of the lesser known yet tried and tested property investment approaches that's becoming better known since Cyprus joined the EU, entered the eurozone and raised its profile as an international business hub, is the city-based corporate letting opportunities in Limassol.
Martin Pearce, Sales Manager of a Cypriot based developers, explains: “Limassol is the largest port in the Mediterranean, its home to hundreds of international companies, and it's a city in the process of a multi-million pound overhaul that includes the creation of a luxurious marina that certainly puts it on the map. “As a result Limassol is emerging as one of the most dynamic markets in Cyprus with strong levels of fly to let opportunity.”
Larnaca and Paphos airports which serve Limassol have both been expanded and there is a strong road infrastructure, together with extensive flight routes to Europe and the Gulf states.
The taxation and regulation competitiveness of Cyprus as an international business location has resulted in a rise in the number of companies that have chosen Limassol's central business district for their regional headquarters. Barclays Bank, BNP Paribas, Deloitte & Touche, Four Seasons and Holiday Inn hotel groups are just a tiny handful of the hundreds of multinationals that have a presence in Limassol.
This has had a direct impact on the rental demand for quality, well located property, with investors cashing in on high-end corporate demand from companies whose executives fly in, conduct their business and fly out again.
Limassol has also become the Cypriot centre for the massive base of wealthy overseas business interest on the island. The island is not only considered safe, it's seen as a location where the quality of life is excellent and the standards of living, education, healthcare and even shopping are very high indeed.
This has had a further impact on the market with many foreign investors buying and renting homes in and around Limassol. Further positively influencing the market is the fact that the city has stunning beaches, it's rich in history and culture, it's the wine growing capital of Cyprus, home to the Cyprus University of Technology and it's now in the process of having a complete and luxurious make-over.
Money is pouring into the Limassol Marina Project for example, and this is set to transform a large area of the city and offer a new direction for tourism in Limassol that in turn offers investors additional areas of investment approach to consider.
For those seeking the broadest range of rental demand in Cyprus, Limassol enables investors to tap into corporate letting opportunities, long-term rental demand, short-term tourism demand and they can certainly benefit from the overall development of Limassol's appeal which is having a direct effect on underlying real estate values.
Rental yields can be strongest in the corporate let and short-term tourism letting business, but for those who prefer consistent year round returns, long-term letting city based apartment stock to professional and local demand is proving most popular.