Rising Office Rental Prices in Cyprus: Why Demand is Growing and Future Prospects

Anastasia Taran
Head of Corporate Services
Reading time 3 minutes
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12 06.2024

The Republic of Cyprus is experiencing dynamic growth and offers unique opportunities for entrepreneurs. The island provides attractive business conditions, including favorable tax laws, strategic location, and developed infrastructure.

In 2024, office rental prices in Cyprus have reached record highs, surpassing the figures of the past five years.

Office Rental Price Growth

Data analysis indicates that in the first quarter of 2024, office rental prices in Cyprus increased by an average of 8.5% compared to the previous year, according to Danish International Real Estate Consultants and Assessors. This growth was particularly notable in Limassol, where prices rose by 18%.

  • In 2024, the minimum rent for offices in Limassol ranges from €25 to €50 per sqm, compared to €20-45 per sqm in 2023.
  • In Larnaca, minimum office rental prices have nearly doubled, now ranging from €15 to €25 per sqm, whereas in 2023 they were €8-12 per sqm.
  • In the first quarter of 2024, office rentals in Nicosia vary from €15 to €30 per sqm, compared to €12-23 per sqm in 2023.
  • In Paphos, office rental rates in 2024 are estimated to range from €15 to €20 per sqm, compared to €7-10 per sqm in 2023.

Factors Driving the Rising Demand for Office Spaces in Cyprus

Several factors are contributing to the high demand for office rentals in Cyprus:

  1. Relocation of Foreign Companies: In recent years, Cyprus has become a preferred destination for international companies seeking a stable and advantageous business environment. Attracted by the favorable tax regime, stable legal system, and strong economy, many companies are actively relocating their offices to Cyprus.
  2. Local Companies: There is also a trend among Cypriot local companies to move into new or renovated buildings, further increasing the demand for office spaces.
  3. Investment in Office Real Estate: Foreign investors are showing significant interest in the Cypriot office market. They are keen to purchase under-construction or planned office buildings for the purpose of leasing or reselling. The construction of new business centers and the renovation of existing office buildings are focal points for developers and investors.

Prospects for the Office Real Estate Market in Cyprus

With the growing demand and rising rental prices for office spaces, the real estate market in Cyprus is showing stable development and attracting an increasing number of international companies and investors. Investing in office real estate in Cyprus has become a profitable direction, offering high returns and growth prospects.

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