The construction sector in Cyprus is experiencing significant growth. At the same time, the island has seen a boom in the construction of commercial property. The most sought-after category is now office space.
This is confirmed by data from the Statistical Service (CyStat) on the issue of licences to local developers.
In particular, the total volume of permits issued for the construction of business centres in Cyprus increased by a record 178.9% from January to May 2024. The area of such projects also increased. For example, commercial buildings increased by 102.2%, industrial buildings and warehouses by 73.8%, entertainment facilities by 39.7% and hotels by 18.8%.
Experts attribute this trend to the continued relocation of foreign companies to Cyprus. The flow of foreign workers is not as strong as it was a few years ago. Nevertheless, it has its place. In this regard, there is still a shortage of quality office space on the island, which local developers are actively trying to fill.
Interestingly, the demand for prime office space is now quite high, but it is not possible to find such space as there is simply no available space.
Local developers receive dozens of enquiries every day from foreign companies looking for commercial and residential property. They are willing to rent or even buy entire complexes in Cyprus. It should be noted, however, that some companies looking at Cyprus end up transferring their employees to Malta because of the fierce competition.
On a city-by-city basis, Limassol is now the most sought-after place for foreign companies to relocate. However, the city is not a rubber city. Unfortunately, Limassol is so overcrowded that companies with a large number of employees simply have no chance of providing accommodation for all of them.
As a result, many companies rent offices in Limassol, and their employees rent or buy apartments in neighbouring Paphos, due to the short distance between the two cities. Those companies moving to Nicosia prefer to rent or buy staff accommodation in the coastal town of Larnaca. In fact, the greatest shortage is in staff accommodation and to a lesser extent in workspace.