26.08.2024
Demand for prime modern office space in Cyprus will remain stable throughout 2024, with businesses moving from outdated buildings to new, energy-efficient office complexes the main reason for this, according to a report by Danos International Property Consultants and Valuers , while increased office supply should lead to stabilisation of prices, rental and purchase costs will remain high due to continued high demand and new building standards.
Office rents across Cyprus increased by 8.5% in Q1 2024 compared to Q1 2023, up 10% from pre-pandemic levels. In Limassol, office rents increased to €25-€50 per square metre, up from €20-€45 in 2023, representing an increase of 18%. In Larnaca, rents almost doubled, reaching €15-€20 per square metre, up from €8-€12 last year. In Nicosia, rents range from €15 to €30 per square metre, up from €12-€23 last year. A similar situation is observed in other areas, including Amoucost and Paphos, where rents have also increased significantly.
The cost of purchasing office space in the first quarter of 2024 remained at the level of 2023, with the exception of Larnaca and Amoucostas . Limassol continues to be the most expensive city in Cyprus for office space, with prices ranging from €5,000 to €6,000 per square meter. In Nicosia, office prices range from €3,000 to €4,500 per square meter. In Larnaca, the cost of purchasing offices has increased to €2,500-€3,500 per square meter, while last year they cost €2,000-€3,000. In Amoucostas, prices have increased to €2,000-€2,500 per square meter, which is higher than in 2023. In Paphos, office prices also remained high, at around €2,500 per square metre.
This rise in office rental and purchase prices highlights the need for further commercial property development in Cyprus to meet the growing demand for modern office space.
