03.06.2024
Limassol is by far the most expensive city, both in terms of renting and purchasing office space, which is pushing companies to look to other cities and especially to Larnaca , which is now considered a promising new investment center in Cyprus.
In general, the commercial real estate market for investment purposes in Cyprus is attractive. Many companies, including global giants, choose to open their offices in Cyprus for various reasons, mainly due to the island’s lifestyle, strategic location and advantages of the tax system. However, many commercial buildings on the island are outdated and new modern buildings are required for companies to operate.
The big advantage of investing in commercial and office space is that the value of these properties increases faster compared to residential properties.
Limassol’s precision and the continued rise in prices for all types of real estate (apartment prices rose by 8% last year) have redirected investors to smaller cities. However, it undoubtedly retains the greatest interest for foreign investors as it is a shipping center.
Larnaca , as a new growing investment hub in Cyprus, has recently become the center of major developments, including the construction of a shopping center, as well as other projects that are on track.
Nicosia, the capital of Cyprus, is best known for commercial property investment in Cyprus due to its working lifestyle, while demand for offices is predicted to increase.
In the Danos report International Property Consultants & Assessors for the second half of 2023 details prices for real estate, rental and purchase of office space in each region of Cyprus.
Office rental cost
In terms of office rental costs , Limassol is by far the most expensive city. In particular , the rental price is €20-€40 per sq.m. The second most expensive area is Nicosia, where the cost of renting office space is €12–22 per sq.m. Next comes Larnaca , where office rental costs range from €8 to €10 per sq.m. In Paphos , office rent ranges from €7-€10 per sq.m. The most “budget” area for renting an office is Famagusta , where the cost of renting an office starts from € 5 per sq.m. and reach €10 per sq.m.
Cost of purchasing an office
When it comes to the office market, Limassol again remains the most expensive city to buy an office. Prices here range from €5000-€6500 per sq.m. In second place is Nicosia, where prices start from €3,000 and reach €4,500 per sq.m. Larnaca is the third most expensive area, prices here range from €2,000 to €25,000 per sq.m. In Paphos , prices for the purchase of offices start from €1,500 and reach €2,000 per sq.m. Finally , prices in Famagusta are €1500 per sq.m.
