The city of Limassol is registering a huge demand in terms of buying but mostly renting offices from companies, with the result that there are no more vacancies.
The war in Ukraine contributed to the arrival of companies on our island, while the departure of companies of Russian interests was observed, as a result of which the demand for offices is growing rapidly and pushing prices up. The same, but to a lesser extent, applies to residential property, as the companies that arrived in Cyprus brought some staff with them.
The image was captured in InBusinessNews by Michalis D. Zavos, the first CEO of the D. Zavos group of companies, even estimating that demand for residential real estate is expected to grow further with casino operations, and with Paphos, as he noted, being an alternative housing solution for workers.
“The problem is the demand for rent. There are many companies that come to Cyprus, mainly technology and financial companies, and are looking for office space as well as staff accommodation. At the moment, there are no finished facilities, but there are several under construction , ” Michalis Zavos told InBusinessNews.
As Mr. Zavos explained, the demand is mainly for large office space, with companies specifically looking for either entire buildings or rooms inside other buildings. In both cases, these are premises from 500 sq.m. up to 5,000 sq.m., which indicates the large size of foreign companies coming to Cyprus.
Mr. Zavos said that the observed increased demand comes from Russian, Ukrainian and European companies. At the same time, there has been a sharp increase in the exit of companies from Israel, including technology and forex companies.
In terms of demand for residential property, Mr Zavos added that there is also growth from the UK, which is likely due to Brexit.
They find alternatives
As a result, companies are looking for alternative solutions, with some even renting hotel rooms for their offices, and others choosing Paphos as their accommodation solution for their employees.
“A number of employees working in Limassol have found shelter in other areas far from the center, even in Paphos,” said Mr. Zavos. “Perhaps the operation of the casino will further increase the demand for housing, and perhaps Paphos will be the solution,” he added.
Prices and performance
Speaking specifically about residential real estate, Mr. Zavos said that although rental prices have risen due to increased demand, this does not apply to foreigners, as prices remain lower than in their country.
Commenting on the rise due to inflation and rising construction costs, Mr. Zavos pointed out that prices for new buildings have risen sharply.
However, he added that the added value of the existing property is being created, which creates investment opportunities for both foreigners and Cypriots. “Those who bought in the past for the purpose of naturalization do not want to sell them, since the profitability of real estate in Limassol is quite high,” he stressed.
Finally, Mr. Zavos pointed out that a new product is being created for Cypriots and foreigners, which is being promoted by D. Zavos.
“It is becoming a new product for Cypriots and foreigners. Buy an apartment and rent it out, as the yield reaches 7-8% for Limassol. Therefore, as a company, we create new products that are clearly aimed at investors,” he explained.