Demand for Grade A office rentals increased in the first half of 2019 compared to the corresponding period of 2018. According to data from Danos Office Real Estate, the office market in Cyprus is growing significantly. The demand for Grade A office rentals is increased compared to the 2nd half of 2018 while the demand for the purchase of first class offices in privileged areas that generate income with a yield of between 5,5 - 7% continues to exist in the 1st half of 2019. .
During 2018 and then in 2019, there is a great office development, with luxurious buildings, some of which are in the works, some on paper, while in others the construction works have progressed significantly. It is estimated that the tall buildings that Cyprus has or will acquire in the near or distant future are expected to change its image. With regard to office rental prices, what is found is that the increased demand is accompanied by an increase in the rental price. The most expensive option remains as in 2018 Limassol with 18 euros per sqm, followed by Nicosia with 15 euros per sqm. Cheaper options are Larnaca and Paphos where office rental costs 12 euros per sqm and Famagusta with 10 euros per sqm The largest increase in rental costs is recorded in Famagusta and Paphos compared to 2018, where the office rent was at 7 euros per sqm and 9 euros per sqm respectively. Larnaca also increased, although to a lesser extent, as in the first half of 2018 the cost of office rental cost 2 euros cheaper. Office prices in Nicosia also showed a slight increase.
Regarding the office purchase prices per sqm, there is a significant reduction in costs per sq.m. Specifically in 2018 the office purchase price was at 5 thousand euros per sqm for Limassol while in 2019 it is estimated at 3,5 thousand euros. Significant reduction is recorded in all provinces. Nicosia is recorded a decrease of 500 euros (3000 euros / sqm), a decrease of 600 euros is recorded in Larnaca (2000 euros / sqm. Market prices in Famagusta fell from 2000 euros / sqm to 1500 euros / sqm while in Paphos from 2100 / sqm to 1800 euro / sqm.
Ledra is more expensive
Compared to the first half of 2018, there is a greater fluctuation of store rental prices in Nicosia and Limassol, however in both 2018 and 2019 Ledras Street is the most expensive shopping street, at least for rent. Specifically in 2018, the prices per square meter were 20-25 euros / sq.m in Archbishop Makarios and in Stasikratous. Rents are more expensive on Ledras Street, ranging from 30-35 euros per sq.m. On Independence Avenue in Limassol, prices range from 20-40 euros per square meter. This year the rental prices are from 10-60 euros per sqm for Archbishop Makarios, 15-40 euros per sqm for Stasikratous and 20-70 euros for Ledra. In Independence Avenue in Limassol the prices range from 20-60 euros per sq.m.
The data show that during the first half of 1, the congestion on the main commercial arteries of the big cities has increased. It is also recorded that the attractiveness and the tendency of the consumers towards the Shopping Centers and the Department Stores continues, since now the consumers prefer more comfortable conditions for their shopping and combine them with entertainment. The easy parking, the access to air-conditioned spaces, the visit to a single space where one combines shopping, entertainment and food under the same space, make the Shopping Centers ideal and suitable for all ages. Also, the construction of "Discount Commercial Villages" is expected soon, e.g. Neo Plaza in Cyprus as well.
Source: KATHIMERINI