Commercial Property Investment
Commercial property investment in Cyprus is growing at a steady pace. Although commercial property is often seen as riskier than residential the reward gained from commercial property investment is great. To become a high achiever in commercial real estate you need to have a flair for spotting neighborhoods which are set to develop rapidly in the coming years as well as understanding the demand in areas.
We will go through the essential information of commercial property investment in Cyprus, including what areas in Cyprus are popular with investors.
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What is commercial property investment?
Why location is key
You often hear that location is key and this statement could not be truer when it comes to commercial property. Most areas have something to offer when it comes to residential real estate even if it is small however commercial property is much tougher in regard to location. You almost always need to find a location that is based near quality facilities, infrastructure and other commercial properties. The tricky yet rewarding part to developing projects that are required to be near other, similar developments, is the need to make them of a high quality. If there are two buildings in the same location, the higher quality building will no doubt be rented first and be rented to prime tenants. When it come to locations in Cyprus there are a number of class areas to pick from, but you must be fully aware of what each region offers.
Let us start with Larnaca, the up and coming investment hub of Cyprus. There has been a number of commercial property investments in recent years including a new retail center. Previously Larnaca has trailed behind other major cities on the island but as we have mentioned, it is becoming a new star.
Second location is Limassol. This city has arguably been the biggest area of interest for foreign investors with it being the maritime capital of the island. However, with its apartment prices increasing by 8.3% last year, investors are shifting to the smaller cities for commercial developments. Now although we are discussing apartment prices, real estate that usually fall into the residential property investment category, the reason this information is vital is due to the work/travel culture of Cyprus. Residents in Cyprus tend to live in the same city as the city they work in. With residential prices in Limassol skyrocketing and domestic real estate booming in other cities, investors are looking for commercial property in these new areas.
Nicosia, the capital of Cyprus, is known well for commercial property due to its working lifestyle. The city is the focus point for legal and government offices so has all the facilities that we previously mentioned as necessities.
Recent Commercial Property Investment in Cyprus
The first type of commercial investment we are going to discuss involves retail property. Recent projects in this sector include the Neo Plaza in Nicosia and the Metropolis Mall in Larnaca. Cyprus will hold 450,000 square meters of contemporary retail space once these developments are completed. These investments have sparked more interest from foreign investors as the areas, especially Larnaca become increasingly popular.
Cyprus has seen investment in office space rise throughout the past years. With more and more businesses wanting downtown office space, closer to city center facilities, it is no wonder investors are leaping at the chance to develop commercial property in these areas. It is even estimated that by the end of 2020 Cyprus will have 260,000 square meters of office facilities.
There has also been success with 2 new marinas planned. Larnaca port and marina as well as Ayia Napa marina are currently being developed.