Investors may be moving beyond city limits but lack of urban planning spells trouble
With Limassol’s seafront peppered with luxury towers and new developments, there is almost no room for new projects, so investors are heading outwards while eyeing the area between the new marina and the old port.
While interest in Limassol’s prime locations does not seem to be withering any time soon, some property experts have expressed fears that uncontrollable licensing of towers and other developments could backfire, bringing prices down and causing social issues for Cyprus’ second city.
The saturation of the seafront has not decreased investor interest in development projects, as they are currently seeking land to the east of the town. One of the areas where major projects are being earmarked is the Pyrgos area, which has seen investors acquiring significant real estate properties in recent months.
Recently, Lebanese investors paid EUR 40 mln for a plot of land which was once home to the old Cyprus Cement Co. factory. The property was sold by the Bank of Cyprus which it acquired as part of a debt-to-asset swap with the previous owners. The Lebanese investors have yet to announce what kind of development they plan to build on the Pyrgos property.
A joint venture between Cypriot Planetvision Properties and British Oxley Property (Oxley Planetvision Properties) has bought property to the east of Limassol worth EUR 30 mln. The consortium has an agreement with French AccorHotels to set up the first Sofitel on the island. Oxley Planetvision Properties has appointed global hotel leader AccorHotels and its luxurious Sofitel brand to manage a new 245-room resort in Limassol. The Sofitel Limassol Resort and Residences, which is expected to open in 2022.
Oxley Planetvision will also be building two towers in the vicinity, of 97 and 105 meters tall, with a total 151 luxury apartments in a project to be completed by 2021.
Also, in the vicinity, a Russian businessman bought property near the Parklane Hotel (ex Le Meridien) worth EUR 40 mln. The property was sold by Anolia Holdings, a Hellenic Bank subsidiary that obtained the property after a debt-toasset deal made with the Church of Cyprus.
Russian company Zaria has submitted plans to construct two towers, the Zaria Residences Sunset and the Sunrise, of 18 and 16 floors, respectively.
Looking westwards
Real estate agents say investors are also looking westwards, especially in the area surrounding the integrated casino resort, investors are also eyeing the industrial area to the west of the new marina.
Danos Real Estate Limassol office director Nicholas Papadopoulos told the Financial Mirror that indications are that investor interest is very much alive.
He said that projects are not only being drafted on paper, but they are also viable as developers are able to finance construction by preselling apartments or other residences before they start building.
“There are many projects in the pipeline including tall buildings and hotels, especially towards the east of the seafront which is more or less saturated. The focus is currently on an area starting from Yeroskipou extending to the east of the city, the area which the ex-LeMeridien is situated,” said Papadopoulos.
He added that there is also a high demand for properties to the west of the new marina.
“We are the exclusive real estate agents for prime property in the area belonging to Coca-Cola Cyprus, and we can confirm that a number of investors have exhibited a vivid interest in buying that property.”
Papadopoulos said that demand has not dampened, but it is being hampered by the absence of suburban planning schemes, the equivalent of a master plan for smaller areas.
“Currently the area to the west of the marina, eyed by investors is characterised as an industrial zone. This is