Shopping centre rents in Cyprus have increased significantly in recent years. Rents for commercial space in popular malls now reach €70 per square metre, which is significantly higher than the pre-mall level of €45 per square metre.
According to local experts, the demand for retail space in malls is growing rapidly as retailers see them as an ideal platform for doing business. Shopping, dining and entertainment are perfectly combined. All of this makes shopping centres more attractive than high street shops. As a result, tenants are willing to pay more. Incidentally, not only well-known clothing brands but also various fast-food chains are now queuing up to rent space in local shopping centres.
The situation could change with the construction of new shopping centres. Many investors have no objection to such projects, but not all of them get permission. For example, it was recently announced that the Mall of Limassol was in trouble - the Limassol municipality withdrew the building permit and now the fate of the project is in doubt. The second mall to be approved in the city is expected to bring around 100 new commercial units to the market. However, some experts warn that the surplus of retail space may not increase the flow of shoppers, but only intensify competition between malls. Therefore, the authorities should closely monitor the development of the sector to avoid oversaturation of the market.
And while the cost of renting space in Cyprus's shopping centres is rising, prices for street shops remain more affordable. Rental rates for street shops in various Cypriot cities are as follows
- Nicosia - 20-45 euros per 1 m2
- Limassol - 20-45 euros per 1 m2
- Larnaca, free areas of Famagusta, Paphos - 10-25 euros per 1 m2
Prices of commercial properties for sale:
- Nicosia - 3,800-5,000 euros per 1 m2
- Limassol - €5,400-6,300 per 1 m2
- Larnaca - €2,500-3,000 per 1 m2
Paphos and the free areas of Famagusta - €1,800-2,500 per 1 m2
It is worth noting that the retail sector in Cyprus continues to grow. In November 2024, the volume of sales increased by 7.2% and the number of goods sold by 6.3%. The most notable growth was recorded in the following categories:
- Books, toys and sporting goods
- Clothing and footwear
- Food, beverages and tobacco
Interestingly, the popularity of online retailers is gradually declining. In November 2024, their sales fell by about %. As a result, Cypriot shopping centres are consolidating their position and the high level of competition between retailers is pushing up prices. High street shops remain stable and offer more flexible lease terms. Consumers continue to spend aggressively, but online shopping is struggling. The development of shopping centres in Cyprus continues, but the market may soon reach saturation point.