Limassol rents are expected to continue rising for the next few years, offering overseas property investors the chance to enjoy strong rental yields in the Cyprus city.
The Limassol chamber of commerce and industry (Keve) warned this week that Limassol rents will continue to spiral, ironically because of the thousands of construction workers needed to complete the many development projects underway, and all requiring housing in or near the city.
The head of Limassol Keve, Costas Galatariotis, told the media he expected around 6,000 workers to burst into Limassol in 2019, further boosting an already heightened demand for housing by students and foreigners, resulting in a renewed hike in Limassol rents.
He confirmed that five foreign companies involved in development projects in Limassol over the next 20 months will be needing a total of 3,000 construction workers, while an additional staff of around 2,500 will be needed for the city’s casino and another 800 to work in the two new hotels.
The initial labour force needed for the City of Dreams Mediterranean casino could actually be higher. The construction phase which is set to begin in the coming months will require 4,000 workers.
It is only once the casino resort is fully opened in 2021 that the number of permanent staff will fall to 2,500. Most of its workforce is local. Currently around 800 employees work in the existing satellite casinos in Nicosia and Larnaca, and in the temporary casino in Limassol.
However, according to Yiannis Markides, the head of the Limassol branch of the construction workers’ association, there is still a shortage of specialist construction workers in the industry.
Demand is particularly high for certain levels of expertise, such as formwork workers and ironsmiths, as many of the projects underway are new to the island and the local workforce.
‘The bringing of construction workers from abroad would be a gift for us,’ said Markides. Though he recognised that this would however bring a new rise in Limassol rents.
According to the RICS Cyprus Property Price Index as at June 30, 2018, across Cyprus on an annual basis flat rental prices increased by 18 per cent, houses by 17.7 per cent, and offices by 14.3 per cent.
In November, MPs were shown data, according to which rents in Cyprus were comparable to – sometimes even higher than – some of the most expensive cities in Europe, like Amsterdam and Barcelona.