The coronavirus pandemic is pushing down rental prices

Спрос на аренду торговых помещений на Кипре резко упал
10 May 2020 Liza Medvetskaya
2340

The coronavirus pandemic is pushing down rental prices and the traditional expensive streets of Nicosia and Limassol are starting to lose their former glory.

Another strong blow has been dealt to the once commercial street of Nicosia, Makariou Street, as well as the busy pedestrian street of Ledra, as due to the banking crisis of 2013 several stores were closed and when new ones returned, mostly from Greece, commercial companies, due to COVID-19, were hit again. 

The same scenario is repeated on the well-known Independence shopping street in Limassol. The maximum rent from € 70 per m2 in Ledra has fallen to € 40 per m2, down 42.85% and is expected to remain at the same level in 2021, according to the Danos & Associates office. 

 Rents on Makariou Street had fallen sharply from 2009 to 2013, as according to a survey by Danish real estate consultants & Associates in that period, store rental prices had fallen by more than 40%, while on other commercial streets , the reduction reached 55%. In particular, in 2008 the highest rents in Makariou and Stasikratous reached €55 per m2 per month, while today the new leases are made at prices ranging to €30 per m2, while in the next category of stores in other areas outside the center, prices have been reduced from 30 euros per m2 at €15 per m2 monthly.

Спрос на аренду торговых помещений на Кипре резко упал

According to Panos Danos, CEO of the company, the new trends in the field of retail, as they are formed due to the consequences of the crisis, include the fact that now the "air" has decreased significantly. 

Also, the cases of large chains, which pay small rent or a percentage of the turnover, which ranges from 5% -7%, when they rent stores in shopping streets, but also in shopping malls, are increasing. 

Another important element is the fact that employment in the retail sector has fallen from 16% of the total pre-crisis workforce to 12% today, with all the negative implications for the economy as a whole. 

During the crisis, the phenomenon of a boom in the number of cafes and restaurants on all shopping streets in Nicosia and Limassol and the gradual shift of retail from the center to Strovolos (Nicosia) and Kolonaki (Limassol) were also observed), respectively. 

It is characteristic that a percentage that exceeds 20% of the stores in Makariou and Ledra, in Nicosia is empty, while in 15% the percentage of empty stores on Anexartisias Street in Limassol is formed. 

According to the company Danos & Associates, even in the big shopping malls the course was also downward, but it is clarified that this was happening with a much lower degree compared to the big shopping streets. In particular, the rent in the most famous shopping centers currently ranges from €40-60 per m2, while the total stock of shopping centers in Cyprus is 257 000 m2 including the largest shopping and entertainment centers, notes Mr. Danos.

"The owners of shops and businesses in the center of Nicosia, suffered in addition to the time-consuming process of carrying out the renovation works of Eleftherias Square and Mnasiadou and Stasikratous streets. "Unfortunately, they saw a sharp drop in their turnover by 70%, hoping for a gradual reversal."

Source: Philenews

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