Rising property prices in Larnaca due to Israeli investor interest, locals can't afford to buy.

Larnaca property prices have recently risen to levels comparable to Nicosia, mainly due to increased interest from Israeli investors, local real estate market participants say.

Israeli interest in the region has not waned even after a slowdown in real estate sales as a result of the conflict with Palestine. Israeli investors are increasingly focused on rental housing, driving up the rental prices of residential properties in some areas, making them unaffordable for locals.

According to Vassos Zakos, director of FOX Real Estate in Larnaca, "The interest before the war can be compared to heavy rain for Larnaca. Although the number of inquiries from Israelis has decreased since the war, their desire remains high. They''are expressing their intention to leave Israel and look for real estate in Cyprus, especially in Larnaca'.

Larnaca's attractiveness to Israelis stems from its proximity to the airport, its growth prospects and the significant presence of the Jewish community, making it a major real estate market. "Previously lower prices in Larnaca now match those in Nicosia, presenting challenges for local Cypriot couples," Zakos added.

"Prices for new one-bedroom apartments of 80-85 square meters start at €200,000 and rise depending on the area, reaching over €300,000 in areas such as Mackenzie. Larnaca, previously well below other cities, has reached the level of Nicosia, presenting challenges for new Cypriot couples. We hope that the measures,''announced by the government for affordable housing and rentals will help the local market,' Zakos noted.

The rise in demand has had a significant impact on rental prices, worrying experts with the possibility of further price increases, noted Themis Anastasiou of Africanos Properties. "After the war, Israelis' demand for short-term rentals increased, leading to a steady rise in prices," he added.

The president of the Association of CyprusReal Estate Agents, Marinos Kineiro, warned that Larnaca could surpass Nicosia in terms of prices. "The current stagnation in sales, combined with the significant increase in property prices, poses the threat of Larnaca exceeding even Nicosia's rates," he said.

Companies show interest in moving headquarters to Cyprus The war has led some Israeli companies to consider moving their headquarters to Cyprus, especially in Larnaca. However, as Vassos Zakos pointed out, Larnaca currently does not have enough infrastructure for large offices. "At the moment they are making exploratory moves because they want to continue their activities. They prefer Larnaca because of the airport and the relationship they have with the city. However, Larnaca currently lacks the infrastructure for large companies and there are also not enough apartments for their employees to live in," he said.

'The problem of the lack of large offices in Larnaca has long been''is being raised by the Larnaca Chamber of Commerce and Industry (LCCI). Companies wishing to establish themselves in Larnaca currently lack offices. To offer a complete package, there must be housing and private schools for families moving to Larnaca,' emphasized LCCI director Haralambos Andreou.

In addition, Israeli interest extends beyond real estate to significant investments in the hotel and business sectors. "Major investments, such as the reconstruction of the port and marina, are being made with Israeli funds," Andreou emphasized.