Getting Best Deal on Renting Office in Nicosia

Relocating or starting a company in Nicosia is one of the best decisions for many businesses. It is a lively city with excellent opportunities for development. Interestingly, more and more business people appear in the capital of Cyprus: it is turning into an international city, open to new projects.

In our article we will tell you how things are going on the commercial real estate market in Nicosia, and more specifically in the rental sector.

Choosing a location: an overview of Nicosia's business districts

The choice of location depends on the direction of business, target audience (clients), budget and, of course, the preferences of the businessman himself. Many people try to choose working premises closer to the center. In general, this is not a bad effort. There is good transportation, well-developed infrastructure, and there are many other useful offices and establishments nearby.

Let us briefly introduce you to the districts of Nicosia and the arguments in favor of renting an office in them:

1. City Center. The busiest place of the capital. Famous for the abundance of tourists and establishments of all kinds. Ideal if the business is related to the sphere of leisure or personal services. Good for modern new buildings, including business centers, so you can rent a luxury space with views and service.
2. Agios Omoloyites. Virtually the same center, but more residential rather than touristy. Here, too, there are enough new buildings and the infrastructure is developed in all directions. It should be taken into account that there are universities nearby. The neighborhood is suitable for almost any kind of business.
3. Aglandjia and Strovolos. Two large neighborhoods that are mostly residential. It is easy to find budget yet very profitable commercial real estate options. Access to the locations (especially in Strovolos) is very easy and convenient - the main roads pass here, from the center and the suburbs can be reached as conveniently as possible: both by private and public transport.
4. Engomi. An upscale family neighborhood with lots of stores and service facilities. Contrary to its status, real estate here is not too expensive. It is suitable for those who want to emphasize their status without going too deep into the busy city center. The atmosphere here is predominantly quiet and peaceful.

The suburbs of Nicosia are not so abundant in choice, and there are very few new buildings with a commercial orientation. Mostly in the suburbs are small businesses of small orientation, operating in a particular area.

The right choice of the area of the premises

To take extra when renting office space - means to overpay and lose part of the profit. This purchase can be carried out with a reserve, and with rent it is better to calculate everything as accurately as possible.

If you take the average, for each average employee should be laid 4-6 m2. If he works with large-sized equipment, then more. This is when working in an open space format. The average office should be 7-10 m2, the latter can accommodate two employees at once.

Reference: the average price of an ordinary office in Nicosia ranges from 15-30 euros per m2 per month.

A separate category are premises for receiving clients. If it takes place in the offices of employees, it is worth adding at least 2-3 "squares" to each employee. If not - you need to think about a good place to meet clients. This also includes the lobby, which should not be too cramped. This always creates an unfavorable impression.

Common areas also take up a lot of space. The good thing is that they are not always included in the rental area - kitchen, restroom, conference room and so on can be one for several offices or in principle for the whole floor.

Hint: panoramic windows or just a large number of them visually increase the space.

Cost to profit ratio

It is not always profitable to choose the cheapest office. It is much more practical to look at the ratio of the cost of rent and the profit that the premises will bring. It is easier to explain with a concrete life example.

Alexander found a coffee shop on a quiet street for 200 euros a month. The area is mostly laundries, vegetable shops and residential neighborhoods. His profit at this kind of business amounted to 1000 euros a month. He didn't like it and moved to another location, for 500 euros a month, but opposite a well-promoted beauty salon and next to a bank branch. Accordingly, he immediately grew a circle of clients. They are employees of the bank and the beauty salon, as well as visitors of this salon, who after the procedures very much want to have a cup of coffee. The monthly profit amounted to 5 000 euros a month.

Another example: if the office is located inconveniently and it is uncomfortable to get to it, there may be turnover among employees even under good conditions. And turnover is always a loss of part of the profit.

So when choosing an office you should look not only at the price, but also at the location, and the neighborhood, and the convenience of access. More often than not, the cheapest options can generally ruin certain types of business.

A good example - an office in Aglandjia near the park and food establishments (coffee shop, pizzeria). Ideal for both retail space and a cozy place for lunch and relaxation.

Rent in modern office buildings: is it profitable?

Modern business centers are not only large and bright spaces, panoramic windows and technological equipment. It is also care about employees. Yes, in large and beautiful office buildings, especially in new buildings, prices are quite high. But if you look at the fact, such options can be even more favorable, because they include a number of services and materials at once:

1. office supplies and paper;
2. a part of office equipment or its complete set;
3. Internet and communications;
4. parking;
5. 24-hour security and video surveillance;
6. concierge and secretarial services;
7. use of conference room;
8. utilities;
9. cleaning and janitorial services, etc.

Thus, many tenants are completely free from some minor, but sometimes tedious moments. Also an important factor is a good view from the window. It would seem: nothing should distract you at work, but! In fact, a comfortable workplace and a pleasant atmosphere is the key not only to the "heart" of the client, but also to the increased efficiency of all team members. Therefore, the contribution to the rent of modern and beautiful premises pays for itself.

As a prime example, Doms Business Center is a new building with everything you need for work in the Engomi district. Note that prices start from 850 euros per office, which is quite a bit for such a level.

Looking at residential complexes

Sometimes it makes sense to look at residential complexes that have office space in them as well. This option is convenient for those employers who provide their employees with accommodation. As an example, you can take new buildings in which on separate floors there are commercial premises (halls for retail outlets or conference halls with offices), and the other part is occupied by apartments.

As a rule, the cost of rent in such buildings is higher, but employees get absolutely all amenities. A subtle point: even if the employees will not live in this building, they can easily find good housing in this residential neighborhood.

For example, there is an interesting option in Lykavitos. A commercial space is rented on the basement floor. The new building is still under construction, so you can buy residential real estate here at a very nice price.

How you can reduce the price of office rent

If you have already explored Nicosia locations and are ready to make your choice, but you are deterred by the average price - try a few tricks. The first, simplest and most Cypriot of all is to look through acquaintances. Nepotism, so common on the island, can play into your hands.

The second way is to sign a long term lease, at least a 2 year lease. Unlike residential properties, one year is not considered a very long period, so the term is 2-3 years, still with the possibility of renewal. A good argument for the landlord to lower the price.

In general, the supply in the commercial real estate market in Cyprus is now a little short of demand. Therefore, you need to respond to offers quickly: discuss all issues and come to viewings almost the same day. If you do not have time to do this - you can delegate it to a specialist.

What is more profitable: to rent or to buy?

When calculating, sometimes the question arises: wouldn't it be cheaper to buy an office rather than rent it? If you look even just at the finances, it is impossible to answer this question unequivocally. The advantage of buying is in the undoubtedly reliable investment. Commercial premises in Cyprus are in demand and are growing in price, and in Nicosia even more so, as the density of development of the city center is increasing, and at some point (soon, by the way) will come the limit. If you change your mind about using the office, it can always be rented or sold.

The advantage of renting is the freedom of action. You're always free to change locations if you feel it's necessary. You can also expand or, conversely, fold more painlessly. Another lease option is great for franchises and branch openings.

So it is simply impossible to say unequivocally what is more profitable.

Detailed information about all projects in Nicosia can be obtained from the specialists of DOM, the No. 1 real estate agency in Cyprus via phone +357 22 030670, or in person at the address: Archiepiskopou Makariou III 1, Lakatamia 2324, Nicosia, Cyprus.

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