Demand for prime office space in Cyprus will remain high until 2024, as many companies gradually move out of older premises and into modern, energy-efficient premises.
These are the conclusions reached by Danos & Associates.
According to the international property consultants and valuers, office rental prices in Cyprus are rising and this trend is likely to continue. In the first quarter of 2024 alone, office rents in the island state increased by 8.5 per cent compared to the first quarter of 2023, and the increase compared to 2019 reached 10 per cent. Office rents in Limassol and Larnaca increased the most, with the Cypriot capital recording a steady recovery.
Looking at the details, office rents in Limassol reached €25-50 per m2 in the first quarter of 2024, compared to €20-45 per m2 in 2023. The increase was 18 per cent. Office rents in Larnaca almost doubled, reaching €15-20 per sqm from €8-12 per sqm last year.
Office rents in Nicosia will increase from €12-23 per sqm to €15-30 per sqm in 2023. In the vacant districts of Famagusta, prices rose from €5-12 per 1 m2 last year to €10-15 per 1 m2 in 2024. Finally, in Paphos, office rental prices rose from €7-10 per sqm last year to €10-15 per sqm.
The cost of acquiring office space in the first quarter of 2024 remained at the same level as in 2023 in almost all Cypriot cities. Only in Larnaca and the free areas of Famagusta did prices increase slightly.
In Limassol, which recorded the highest value in the whole of Cyprus, prices ranged between 5,000 and 6,000 euros per 1 m2. At the same time, prices in Nicosia remained close to the level of 2023, ranging from 3 thousand euros to 4.5 thousand euros per 1 m2.
In Larnaca, the sale price of 1 m2 of office space rose to 2.5-3.5 thousand euros in the first quarter of 2024, from 2-3 thousand euros in 2023. In the vacant districts of Famagusta, prices rose to 2-2.5 thousand euros from 1.5-2 thousand euros in 2023. In Paphos, the average price for buying an office space was 2.5 thousand euros per 1 m2.
It should be noted that this trend is caused, on the one hand, by the increased demand for commercial property by foreign companies and, on the other hand, by the emergence of new modern offices, the price of which is an order of magnitude higher than the offers on the secondary market.