Due to the coronavirus pandemic and the closure of the passport program, residential property sales in Cyprus have dropped significantly.
At the same time, the demand for commercial real estate remained at a consistently high level. There is even a growing interest in logistics facilities in the country.
It should be noted that the greatest interest among tenants and buyers is attracted by class A offices: premises in new business centers, which have a good location, good transport accessibility, optimal planning solutions, high quality finishes, a modern level of utilities, and the presence of automated life support systems.
It is expected that developers will be guided by such standards in the near future, when implementing new commercial projects.
The Cyprus commercial real estate market is now ready to fully meet the demand of previous years and cover the need for offices for companies planning to relocate to the island.
The most expensive offices are located in Limassol and Nicosia, then go Larnaca, Paphos and Famagusta.
The cost of selling commercial real estate by city of Cyprus:
- Limassol - up to 4 thousand euros per 1 m2;
- Nicosia - up to 3.5 thousand euros per 1 m2;
- Larnaca - up to 2.75 thousand per 1 m2;
- Paphos - up to 2.75 thousand euros per 1 m2;
- Famagusta - up to 2.25 thousand euros per m2.
The cost of renting commercial real estate in the cities of Cyprus:
- Limassol - up to 18 euros per 1 m2;
- Nicosia - up to 16 euros per 1 m2;
- Larnaca - up to 12 euros per 1 m2;
- Paphos - up to 8 euros per 1 m2;
- Famagusta - up to 7 euros per m2.
It should be mentioned that during the coronavirus pandemic, the segment of warehouses and industrial / logistics assets turned out to be in great demand among many investors. The evolution of digital transformation, driven by the pandemic and changing customer expectations, as well as emerging new business models and new market entrants, have been key drivers that have revolutionized the sector.