Demand for Cyprus offices encourages businesses from other countries
In Cyprus, the demand for offices has remained stable since 2020, and housing also shows good stability. In general, we can talk about a solid real estate market in the country that is not affected by global and domestic factors, such as rising inflation, rising energy costs, and other problems.
Demand for properties in Cyprus has been growing for many months, and in recent years investors have shown increasing interest in luxury office properties. Despite the fact that in Cyprus, as well as in other countries, prices and costs of businesses have risen significantly over the past year, companies are actively buying office and commercial space. Experts said that one of the factors increasing demand for real estate is the relocation of companies from countries with unstable political situations. At the same time, the prices for objects are stable from 2020.
Local developers are trying to meet the increase in demand and in the near future promises the commissioning of several luxury office buildings. In addition, a number of high-end buildings are also under construction now, which will be of interest to investors.
The most in-demand market is Limassol, however, there is an active growth in demand for real estate in Nicosia. The latter city is of interest in most cases to technology companies that have moved here from other countries.
In Nicosia, the rental rates per square meter range from 12 to 23 euros. In comparison, in 2020 and 2021 the prices were between 12 and 20 euros per square meter.
In Larnaca, the prices for 2 years have increased only by 2 euros, renting an office here will cost 8-12 euros per square meter. In Limassol, the rent of such real estate is 20-45 euros per square meter, and in Famagusta – from 5 to 12 euros per square meter.
As for the purchase of office space, in Nicosia, prices range from 3 thousand to 4.5 thousand euros per square meter. In the previous two years, the price was 3-4 thousand euros. In Larnaca, the real estate is cheaper, a square meter will cost 2-3 thousand euros. In Limassol, the price for offices ranges from 5 to 6 thousand euros per square meter.
The yield from the rent of such real estate in Nicosia is 5-6% per annum, and in Limassol – 5-5,5% per annum. Slightly higher profits from renting offices in Paphos, here objects bring 5.5-6.5%. In general, it can be said that the office property sector in Cyprus is developing quite evenly.