Danos & Associates has released comparative data for the lease of retail space in the cities of the Republic of Cyprus.
According to the analysis, the largest drop in rents occurred during the 2013 financial crisis, after which there was a gradual increase in rents until 2019. However, the coronavirus pandemic has made its own adjustments, and today the amount of rent depends largely on the location and even on the commercial value of the street where the shopping facility is located.
The most expensive shopping street is Ledra street.
In 2020, the rental price per 1 m2 in Ledra ranged from 18 to 36 euros per month, then in the coming year it dropped to 20-26 euros, thereby actually returning to the level of 2013. By the way, in the crisis year of 2013 the maximum rent for 1 m2 was 25 euros. After that, this picture began to change dramatically. In 2014, the minimum price for renting a store was 30 euros, and the maximum was 35 euros. These figures remained stable until 2017. Since 2018, the maximum rental prices have risen sharply to 70 euros, and remained at this level until 2019.
As for Makarius Avenue in Nicosia, which used to be the most fashionable shopping street in the capital, prices here varied significantly over the years. For example, the rent of retail premises ranged in 2009 from 20 to 30 euros per 1m2. These indicators remained at the same level until 2012. In 2013 and 2014, there was a sharp decline in the rental price to 20 euros per 1m2. From 2015 to 2017, the range of rental prices ranged from 20 to 25 euros. In 2018 and until 2020, the rental price scenario changes again. The minimum rental price remains at 20 euros per 1 m2, but the maximum price reaches 60 euros per 1 m2 in 2018. In 2019, the highest rental price for retail space was recorded at 60 euros per 1 m2, and in 2020 it fell to 26 euros. In 2021, prices for commercial real estate on Makarius Street remained at the same level.
The cost of 1 m2 for the sale of retail space is:
- Ledra Street (Nicosia). In 2020, the price of 1 m2 was about 1600-2400 euros, in 2021 - from 2000 to 2300 euros.
- Stasikratous Street (Nicosia). In 2020, the price of 1 m2 was about 1600-2400 euros, in 2021 - from 1800 to 2400 euros.
- Makarius Avenue (Nicosia). In 2020, the price of 1 m2 was about 2000-3200 euros, in 2021 - from 2000 to 3100 euros.
As practice has shown, if the government of Cyprus does not succeed in coping with the coronavirus pandemic in the near future, the online ordering sector will gain even more popularity, since the inhabitants of the island will be limited in offline purchases. And as far as we know, online sales do not need retail space, but rather warehouse premises, for which, most likely, demand will increase.
By the way, most of the affected entrepreneurs are already trying to compensate for the damage by going online. A unique situation is now emerging that can lead to the transformation of not only the real estate sector, but also other sectors of the economy.
You can find profitable options for buying and renting commercial real estate in Cyprus on the DOM Real Estate portal. The website has a large number of objects - more than 20,000 options. Choose and contact professionals who will help you make the right choice!