Despite the outbreak of the coronavirus pandemic and the closure of the passport program, Cyprus intends to attract large companies, and, thus, to develop the commercial real estate sector.
There is an increased demand for office space in Cyprus from foreign high-tech companies, mostly in Nicosia.
It is expected that further interest in commercial properties could be a trigger to stabilize the island's property market.
In other words, despite all the problems, commercial real estate remains one of the most attractive areas for private and government investment in the country. Interest in it is underlined by its great potential, which guarantees the stability of capital and the safety of investments in any "scenario" of the world crisis.
All bets in the real estate sector are on equity. Nicosia has gone from staying away from the Citizenship by Investment boom to become the driving force behind the industry, real estate experts say.
As you may know, while the total demand for Cyprus property from foreigners in the first four months of 2021 declined, Nicosia became the only city in the country with a record 69.7% growth in property sales to foreigners.
The Cypriot authorities currently have high hopes for large global companies, especially for FinTech companies.
They intend to do their best to encourage foreign companies to move their headquarters to the island. Thus, in their opinion, it is possible to fill the gap after the closure of the Citizenship by Investment program.
It's no secret that the Cyprus property sector has been on the rise for the past 7 years, driven by foreign investors seeking EU citizenship in exchange for an investment of €2.5 million in real estate.
It is worth noting that Brexit can also be positive for Cyprus.
After the UK left the EU, many UK-based companies began to actively seek alternative options where they could move their offices.
And Cyprus is an ideal place for it.
It is noteworthy that foreign firms and investors are mainly looking for new offices and warehouses in the island's capital. At the same time, they do not want to invest in land or houses, but prefer for high quality offices to locate their headquarters or offices.
There is no doubt that the increased demand for commercial real estate can lead to another boom in construction in Cyprus. However, this time developers will give priority not to residential, but to office buildings. Currently, several high-rise buildings are under construction in Nicosia, which will have high-class offices. At the same time, the Cyprus Department of Environment is considering a number of new projects that relate to the construction of new commercial facilities in the central part of Nicosia, the Engomi region, Strovolos, Aglantzia and Latsia.
Finally, it must be said that in practice it was Nicosia that proved to be the most resilient to all shocks in the Cyprus property market due to the coronavirus pandemic and after the closure of the passport program.
Despite a difficult year, the leading players in commercial real estate are in a positive mood. Cyprus office property is transforming in response to the needs and demands of its tenants. Warehouses are experiencing the peak of their demand, which has been seen over the past six months.
You can learn more about new projects on the DOM real estate website. The website also has a large number of Cyprus properties both residential and commercial. Choose and contact professionals who will help you make the right choice!
Photos: DOM LiVE, pixabay.com