Due to the coronavirus pandemic, the demand for the purchase and rental of office space in Cyprus may decrease by about 10-15% in 2021.
WIRE Consulting, which manages real estate assets in Cyprus and Greece, conducted a survey among employees of the organizations.
Most of the respondents stated that they intend to spend 60% of their working time at home. At the same time, employers also noted that the number of working days when employees work at home will double. It must be said that WIRE interviewed about 4,300 office workers and 1,500 senior executives.
According to WIRE, there is no doubt that remote work is the future, since many processes are already automated.
At the same time, the WIRE report notes that prices for office space in Cyprus have increased significantly over the past 5 years.
According to the WIRE index, the growth was 11.4 points as it rose from 66.4 to 78.1. It is notable that the index has shown growth annually, with the exception of 2020, due to the pandemic that ruled over the country.
Analyzing the data on the cities of Cyprus, the figures in Nicosia are especially impressive, where the sale prices of commercial real estate showed record results. In particular, the price index jumped from 71.1 points at the end of 2016 to 104.8 in the first quarter of 2021.
The pandemic was unable to stop the rise in prices in Nicosia, as in 2020 the price index for capital's office space has increased significantly, says the WIRE report.
As for other cities on the island, during last five years:
- Limassol: the commercial property price index rose from 68.8 to 78.7 points. Of course, it is important to note that the prices per m2 in Limassol are much higher than in Nicosia and other cities on the island, so the margin when prices go up is limited. In addition, the closure of the investment program influenced the Limassol real estate market, and the prices of commercial properties are not an exception.
- Larnaca, Paphos and Paralimni: prices have also increased significantly over the past five years, but a slight drop was recorded in 2020. On average, the price index for commercial properties in these cities increased from 65.1 to 81.4 points.
Based on this research, in the post-pandemic era, investing in quality serviced office buildings with large premises, ideally in Nicosia and Limassol, can be considered successful. There are many companies, both large and small, that are constantly on the lookout for good quality offices that can meet their needs. As you may know, according to our research, you can get an income of 6-7% per year by investing in class A offices, and this is a very good profit - concluded in WIRE.
You will find a huge selection of commercial properties, offices, buildings for rent and purchase in Cyprus on DOM real estate website. Choose and contact professionals who will help you make the right choice!