Cyprus's commercial developments are increasing significantly
August 19, 2024

Cyprus's commercial developments are increasing significantly

Based on current statistics from the Statistical Office, commercial building in Cyprus, especially office spaces, has seen an amazing increase. The increase in the number of companies migrating to Cyprus is mainly accountable for the 50% rise in the floor area given for commercial buildings. The office market has been greatly supported by this tendency, whilst the residential sector has shown very moderate expansion.

Commercial sector growth

With a floor area for permitted office complexes growing by an astounding 178.9%, the data shows an enormous increase in non-residential projects. Industrial and warehouse space has increased by 73.8%, while commercial building space has increased by 102.2%. There has also been an increase of 18.8% in licensed hotel project areas and a 39.7% increase in spaces set aside for entertainment.

Consistent supply of residential units

The supply of new residential units has a significant impact on property values. This impact is driven by the dynamics of supply and demand. To make housing more affordable, he stressed the need for a consistent supply of new units.

Although building permits have been rising, with projects expected to wrap up in the next twelve to eighteen months, Polis Kourousidis, president of the Association of Real Estate Appraisers, predicted a major slowdown in the following six months. The District Administration Offices (EDAs) have been experiencing delays in reviewing and issuing permits, not a lack of demand, which is the reason for this. Prolonged delays, he said, may have far-reaching negative consequences for the market.

The increasing demand for office space, especially from international firms setting up business in Cyprus, is what Kourousidis attributed to the high increase in office licenses.

Residential sector trends

A high increase in duplex constructions is the primary reason for the 5.8% year-on-year growth in total floor area for residential structures, according to the Statistical Office. There was a 9.1% rise in the floor area of residential multifamily buildings and a 2% increase in mixed-use multifamily buildings. While single-family houses saw a decrease, structures with more than two households had a 10.1% gain.

Several significant developments contributed to a 13.4% rise in the total project area, which included both residential and non-residential components. The number of construction permits issued has decreased by 7.9% compared to 2019, with a 3.8% fall for commercial projects and an 11.8% increase for residential permits.