Commercial Property Investment in Cyprus 2024: Growing Markets

Real Estate Investment Groups in Cyprus

International investors interested in participating in real estate investment groups in Cyprus starting from €500,000 budget.

Commercial Property Investment in Cyprus

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.

Commercial Property Investment​

What is commercial property investment in Cyprus?

Commercial real estate (CRE) tends to be for business purposes and workspaces rather than living space, although it is not limited to these. They range from small restaurants through to large scale retail parks. Investors can use direct investments which is where the become landlords through the ownership of the property or indirect investments, this is where investors indirectly invest in the ownership in various market securities like REITS. Commercial property does have potential downsides like any other type of investment, these include values dropping suddenly, damages to the properties as well as malfunctioning interiors. However, tenants are much more likely to take care of commercial property because the lease is usually for a longer period of time. Another benefit to this type of real estate investment in Cyprus is that the value usually increases at a faster rate than residential real estate.

Why location is key

When entering commercial property investment in Cyprus, 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 8.1% 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 investment in Cyprus 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.

Commercial Property Investment​

Market Capital & Rental Values of Offices

Reviewing RICS and Deloitte’s 2021 Market Report, Since 2015, there has been a rise in economic activity in Cyprus, resulting in a fall in unemployment rates, so the demand for office space has increased as projected. Limassol’s capital values of office premises increased beginning in 2016. By the end of 2019, the average office value was €2.639/sq.m., representing a 42 percent gain over the end of 2015 (€1.859/sq.m.).

When comparing the cities in Cyprus, Nicosia has the highest average office lease rates per sq.m. since it is the capital city of Cyprus. Next in line is Limassol, with the country’s biggest port, experiencing price growth in rental and investment when it comes to commercial property investment in Cyprus. Detailed analysis of all the cities Cyprus are stated below:

Commercial Property Investment in Cyprus

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.

Real investment in Cyprus has seen activities in office space investment 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 2023 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.

Sectorial Growth Driving Commercial Demand

A positive development cycle has been started by deliberately aligning investments with the explosive growth of critical sectors, setting in motion a dynamic interaction between economic progress and architectural innovation. This synchronization enhances the intrinsic value of these investments by encouraging the adoption of sustainable building methods and reshaping commercial spaces to meet industry-specific demands better. International investors are realizing the appeal of Cyprus’ changing terrain, which is dramatically affecting the world stage.

This flood of global investment diversifies the market and brings in new viewpoints, weaving a cosmopolitan tapestry that melds well with the country’s rich history.Collaboration amongst stakeholders is becoming more critical, encouraging a comprehensive strategy that balances modernity and preserving Cyprus’ unique character. Cyprus’s bright economic prospects coexist with a dynamic cultural landscape in the future, promising investors a unique mix of returns that go beyond monetary benefits.

Investment Strategies and Trends

Investment strategies and trends in Cyprus’s commercial property market are evolving, driven by various factors. One prominent trend is the increasing diversification of investment portfolios, with investors looking beyond traditional assets like residential properties to capitalize on the growing demand for commercial spaces. This shift is also fueled by the attractive rental yields and potential for capital appreciation offered by commercial properties in key locations. Additionally, there is a noticeable trend towards sustainable and environmentally friendly properties, reflecting global concerns about climate change. Investors are increasingly considering properties with green certifications and energy-efficient features, recognizing the long-term benefits of such investments.

Moreover, with the rise of remote work and flexible office arrangements, there is a growing interest in mixed-use developments that combine commercial, residential, and recreational spaces. These trends indicate a dynamic and evolving commercial property market in Cyprus, offering diverse opportunities for investors seeking high returns and sustainable growth.


The market for commercial property investment in Cyprus is very attractive at the moment. Many companies, including global giants are choosing to establish their offices here due to the lifestyle, strategic location and the advantages of the tax system. However, many commercial buildings are outdated so with this influx of global companies, new contemporary buildings are needed. Now is the ideal time for investors to take notice of the demand. The tourist industry is also stable and receives constant interest from foreign investors, with news of a new Radisson coming soon. It is fair to say that investment in Cyprus can be profitable and beneficial for investors.

If you have any questions regarding starting your commercial property investment in Cyprus, do not hesitate to contact us at, call us at +357 24 816246 or Book a 20-Minutes Online Meeting.

Related: Complete Guide on Cyprus Investment

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