CONTINUED GROWTH IN OFFICE RENTAL PRICES IN CYPRUS. LUXURY SEGMENT LEADS THE WAY

Cyprus continues to see high demand for office rentals from foreign companies. According to Phileleftheros, in 2024

By TEFL · 20.05.2024

Cyprus continues to see high demand for office rentals from foreign companies. According to Phileleftheros, in 2024, office rental prices reached their highest levels in the past five years, surpassing pre-COVID figures. Over the past year, office rental prices have increased by an average of 8.5%. Limassol remains the leader in demand, with prices rising by 18%.

Kyriakos Kiliaris, Head of Marketing at Danos and Associates, told the publication that demand for office spaces, especially in the luxury real estate segment, will remain high at least until the end of 2024. Demand is driven not only by the relocation of foreign companies but also by Cypriot firms increasingly deciding to move from old to new or renovated buildings.

As an example, Kyriakos Kiliaris cited a large company in the petroleum processing sector that is looking for a new office building in the Cypriot capital for relocation.

Foreign investors are also showing interest in the office real estate segment in Cyprus, ready to buy office buildings under construction or in the planning stages to sell or lease them to companies relocating to Cyprus after their completion.

Recently, Danos and Associates acted as a broker in the sale of an office building in Cyprus for 40 million euros. It was purchased by a Greek company specializing in real estate investments.

The highest demand is for luxury office spaces, which are not abundant in Cyprus. These offices are usually located in new or renovated buildings in prestigious or business districts of cities and are equipped with high-tech automated life support and energy-saving systems, climate control and ventilation, and fiber optic telecommunications networks.