22.06.2023
The real estate market in the capital is of great interest to investors, as another multi-million dollar project is under development. A new investment of over €60 million is currently under study. The construction will focus on the development of a strategically located site in Nicosia, on the busy Limassol Avenue in the capital.
The investment involves the construction of a luxurious five-story building that will house apartments, offices, restaurants and medical facilities.
As reported, the development is carried out in collaboration with a world-renowned architectural firm with extensive experience in office space, retail space, residential, entertainment and mixed-use projects.
The developers of the project, taking into account the current market situation, will not seek to sell apartments and office space, but will lease out the objects. The rationale behind this approach is that high interest rates and inflationary pressures in the market will make it difficult to arrange sales. The developers believe that rental options can get more support, at least at the current stage.
The decision to lease rather than sell the property may, of course, change in subsequent stages, when market conditions become more favorable and a buyout becomes objectively more feasible.
This is not the only multimillion-dollar residential and office project in the area, indicating a growing interest in the capital. Work is underway on the construction of two residential towers located in the open area of the Landmark Hotel, the former Hilton Cyprus. This investment of 70 million euros includes the construction of two high-rise buildings, a seventeen-story residential building with 53 apartments, and a sixteen-story high-rise office building. The total area of residential and office buildings is 13,794.60 square meters. m and 26,640 sq. m respectively.
Real estate agents report that there is strong demand in the office and commercial real estate market despite the pressure of skyrocketing inflation as companies consider setting up a base/branch in Cyprus.
Lucas Georgiou, head of real estate research and valuation at BNP Paribas/Danos Real Estate, said: “The war in Ukraine has driven up the cost of living and operating costs; however, it is also helping to increase interest in office and commercial space as many companies formerly based in Ukraine are looking at Cyprus as an alternative.”
