Nicosia is an ideal place to invest in commercial real estate.
The number of new business projects is growing, their prices are still relatively moderate, demand is rising, and the city's infrastructure is becoming more attractive every day.
According to the database of the real estate agency DOM Real Estate, at the beginning of 2023, the average price of 1 m2 of quality commercial properties in Nicosia is 2.8 thousand euros, which is 1.5 times lower than prices for real estate of similar classes in Limassol.
Last year, Nicosia was in the forefront in the number of real estate purchase and sale transactions in Cyprus after Limassol. In total, there were 5,311 transactions in Nicosia: 365 were transactions with houses, 1,917 with apartments, 1,237 - land, and 1,792 - fields.
Most new commercial projects are being built in the center of the capital.
They are multifunctional buildings with a height of 4 floors and above, which have the latest technology, underground parking, reception desks, a video surveillance system and climate control of the entire building. Often on the ground floor, there are premises for shops, and the upper floors are reserved for residential apartments or restaurants for future employees. Such business centers can be easily rented out as a whole, floors or separate offices. It is this format that is now most in demand in Cyprus.
How the capital of Cyprus will change in the coming years
Nicosia is only getting more beautiful every year. In the foreseeable future, the city will face many changes, aimed at improving the urban environment, transport and pedestrian conditions that will transform the city and make it even more comfortable. This, in turn, attracts entrepreneurs to the capital.
Traffic problems at the entrance to Nicosia at the end of 2023 will be solved by newbeltways and the Alexandroupolis Avenue in Strovolos.
In addition, in June last year, the authorities announced their intention to improve the road infrastructure on Ippokratous, Argyroupoleos and Tseri avenues, and already in early January this year it was announced that the tender was won by the Iacovou-Cyfield (M) Joint Venture. It should be noted that the Cyfield company is one of the leading developers of the island, under its leadership, grandiose commercial buildings of the capital are being built, which we will discuss below.
In November 2023, a large-scale reconstruction of the old GSP stadium will be completed in the capital. And in 2026 they plan to complete the construction of a large-scale Archaeological Museum next to the river Pedios.
Modernization of the center of Nicosia
The value of real estate in the center of the capital as a whole remains unchanged. Recently, the renovation of Eleftherias Square was completed in Nicosia. Now the city center looks very modern and a bit spacey. A project to renovate Trikoupi Street is already starting, including the restoration of the facades of fifty buildings and sidewalks, the modernization of street lighting and underground engineering networks, as well as landscaping. It should be noted that in recent years, interest in the central regions has been falling, but the construction of new modern projects has stopped this trend.
After the approval of the new development plan, the construction rate in the area is 200% (previously it was 100%), which allows developers to build 'high-rise buildings' (up to 8 floors) in the historical center. By the way, after the approval of the new plan, prices rose in the area for both new and old properties.
The undoubted advantages of investing in commercial real estate in the capital are:
- Increased demand for commercial property against the background of a decrease in the total supply in Cyprus.
- Developed infrastructure for business and life.
- Ability to provide competitive prices for properties.
- High profitability of new buildings in the long term (up to 60%)
- High profitability of new buildings at the off-plan stage (up to 30-40%).
- A guarantee that the capital of Cyprus will continue its active development in all directions.
- Availability of large plots of land for development.
- Possibility to build high-rise buildings.
Market experts consider the following constraining factors as disadvantages:
- Uncertain situation on the border with the occupied part of the island.
- Extreme weather conditions (in summer the air temperature often exceeds 40 degrees).
- There may be a shortage of qualified personnel willing to move to a capital located far away from the sea.
- The capital is considered safe, but not everyone dares to walk along the dark alleys late at night.
- Real estate experts report that investors should pay attention to the risks in the event of a flood of the Pedieos River, which runs through almost the entire capital of Cyprus. At the moment, there are 15 buildings located on the shore in the high-risk zone (5%).
Commercial buildings in Nicosia
Business buildings of the capital are not inferior to the same class projects in Limassol, Lаrnaca, Pаphos. At the same time, among them there are projects that have become a real legend in the world of investors and lovers of beautiful modern architecture.
T Capital
At the intersection of Dasoupoleos and Vassilis Michaelides streets, soon will be constructed a new business center T-Capital. The building will have six ground and two underground floors. The first one will house three shops. On the remaining five floors there will be functional offices, the space of which can be easily equipped according to the needs of future businesses. The office part of the building will have a separate entrance with a lobby, reception and a shared elevator.
360 Offices
On the lively Makarios street, next to the highest tower of the city «360 Nicosia», there is a stylish 4-storey commercial building called 360 Offices, the purchase price of which is no less than 1.2 million euros to 1.35 million euros. Each of the offices will have a bright design, VRV air conditioning and high quality finishes.
The Cross Point
Another оffice of the superior class center is located on Kallipoleos Avenue. It will consist of seven ground and two underground levels. On the ground floor, according to 'tradition', shops will be located, and the rest of the premises are being built as offices with a separate entrance, a reception desk and an elevator. Prices start from 330 thousand euros.
The Square
The Square in the Dasoupolis area on Athalassa Avenue, which includes 6 ground and two underground floors, is also built with the latest technology. The offices of this modern complex are in no way inferior to the previous project, but the price starts from 500 thousand euros.
The Hill Business Center
The commercial new building The Hill Business Center, which is expected to be completed in 2023, is located in the central area of Strovolos. During the construction, the latest technologies and modern materials were used. Convenient access to the main highways is the main distinguishing feature among the leading new buildings in the capital. Prices start from 972 thousand euros.
Properties available for sale in The Hill Business Center
The Loop
Commercial center The Loop— another innovative metropolitan project with convenient access to the entire infrastructure of the city. Today it sells 272 m2 оffices at 825 thousand euros (+VAT).
The Asteroid
Commercial building with a total area of 596 m2 in one of the most elegant and tall buildings in the center of the capital - the 16-storey business center The Asteroid - in the quiet area of Dasoupolis is estimated at 2.65 million euros (+ VAT).
Nice Dream
Another unusual building in the constellation of investment innovations in Nicosia — Nice Dream, the first six floors of which are reserved for offices. Moreover, each floor can be equipped in accordance with the task of the tenant. The purchase price is from 685 thousand euros.
In the same building, on the 7th and 8th floors, there is a cafe and a gym. Even higher, there are a couple of luxury apartments with views of the city and mountains, which is very convenient for those who are used to staying up late at work.
Properties available for sale in Nice Dream
Prime Tower
Just 20 meters from Makarios Avenue there is a tower called Prime Tower. Just 5 minutes from the building is the famous tourist street Ledra and the newly renovated Eleftherias Square, and 100 meters from the largest parking lot in the city.
Properties available for sale in Prime Tower
Nexus
The unusual design of the commercial building is the result of a closed architectural competition. It resembles a ship. The total area of this investment the project is 8,935 m2 and the cost is 20 million euros (+VAT). Located in a central area, the project promises to be one of the most sought after in the foreseeable future.
Most Expensive Investment: Campus Project
The most expensive and at the same time profitable investment in Nicosia today —project campus in the Aglantzia area, which is planned to be completed in 24-36 months from the date of commencement of construction. The project currently has planning permission and is awaiting a building permit. The cost is 40 million euros (+VAT). The complex includes 7 residential buildings, one commercial building and public areas. The future campus is located within walking distance from the university, which currently has about 10,000 students.
The most affordable investment: an office in the city center
For 204 thousand euros in the center of the capital, today you can buy a secondary object with a total area of 95 m2, suitable for various types of activities, from accounting to medicine. Recall that when buying a secondary property in Cyprus, 19% VAT is not paid, and in the case of new buildings, this is a mandatory item.
Detailed information about all projects in Nicosia can be obtained from the specialists of the real estate agency №1 in Cyprus - DOM Real Estate by phone +357 22 030670, or in person at: Archiepiskopou Makariou III 1, Lakatamia 2324, Nicosia, Cyprus.
Read also:
- GESY General Health Care System in Cyprus
- Digital Nomad Visa: how to become a digital nomad in Cyprus?
- Supermarkets in Nicosia: from the most glamorous to the most budget-friendly
- TOP 10 residential projects in Nicosia complete with permanent residence
- Pros and cons of living in Nicosia
- Cyprus Real Estate Agents Celebrate the New Year in Traditional Style
