THE CONCLUSION of 2019 is that the Cyprus real estate market is changing faster than ever and requires constant innovation, updating and transformation.
The positive trend will continue in the coming period, as the Cypriot real estate market is constantly developing and becoming more and more attractive for global investors, as well as the banks that follow their projects with various types of financing.
Investments are also extremely visible in the retail sector, which, in 2020, will gain several new shopping destinations such as the Neo Plaza in Nicosia and the Metropolis Centre in Larnaca. Following the construction of these facilities, Cyprus will have 450,000 square meters of modern retail space, which will facilitate the entry of many new brands to the market.
The residential market is not lagging as a significant number of large residential complexes are currently under construction such as, 360 in Nicosia, Kition in Larnaca and Limassol Del Mare (phase II), which will add to the appeal of the Cyprus market and supply new luxury residential space.
In the office space segment, an important change happened, as many companies are increasingly interested in downtown locations for business.
By the end of 2020, Cyprus will, with the finalisation of the office development schemes currently under construction, reach a staggering 260,000 square meters of office space in its market.
Among the major office projects that are planned to be delivered on the market next year in Nicosia are the Nicosia City Centre, the Capital Gate and the Asteroid Tower, as well as upcoming projects such as the Cymiva Office Tower.
The focus is also on the industrial and land sector, which will experience expansion in the future. This year more than 10,000 square meters of modern industrial and logistics facilities have been completed, with the current total supply in Cyprus of over 340,000 square meters. More such facilities are to be constructed in 2020, from companies such as Lamar.
Hotels and Tourism finally are sustainable and a very promising market as well, with additions such as a new Radisson and a Sofitel, plus Ayia Napa Marina to join the market, soon.
It is important to note that the availability of financing is a major component in the growth of the investment market in Cyprus.
The banks are generally willing to finance yielding assets with sustainable income at attractive rates, allowing for attractive gaps to investors looking for leverage.
Nicosia, Limassol, Paphos and Larnaca are finally becoming important locations on the world investment map, and we must safeguard growth and outperform the competition.
What to have in mind
To provide investors with the information as to what to invest in and whether they’ve picked the right moment to invest at all, we first need to analyse the idea of the project and the location where the facility would be built. Not every moment is the right one and not every project is profitable, regardless of the price.
Since 2001, there has been an overall expansion of the real estate market and the arrival of large global companies and of private investors-residents, which have changed the image of Cyprus and its cities in the construction sector.
The Cypriot market follows world trends, needs and balances accordingly, trying not to become oversaturated in any sense.
The aim is to make a product which is easily sustainable in the market, that is, to help the investor make the planned income in the easiest way possible.
The great news is that it is obvious that all market segments are developing, as we have been in an expansion phase for some time now.
When it comes to the construction of business premises, the demand is great, and the lack of modern office space which meets the standards of large companies is one of the reasons why many investors are currently working on expanding their business complexes, and new business facilities are being built as well.
Also, along with the residential market, which is developing intensively, good planning and analysis are becoming increasingly important, so that a project is fully adapted to the needs of the market, that is, a certain location, in terms of structure, quality, price and available features meeting with the expectations of the target group of clients, can be carried out.
Judging by the research and analyses from the past few years and the data we get every day, Cyprus is a desirable investment.
About the author
Panos Danos is the CEO of Danos/BNP Paribas Real Estate and has a Bachelors in Land Management and Development and is a Fellow of the Royal Institution of Chartered Surveyors. He is a registered valuer of RICS (VRS), member of Investment Property Forum (IPF) and a Chartered member of the Society for the Environment.