Commercial property for sale in Cyprus

Commercial real estate in Cyprus

Every year, the Republic of Cyprus attracts increasingly more investors to buy real estate. The reason for such high demand is a mild tax climate (the corporate income tax rate is one of the lowest in Europe — 12.5%; and IT companies can be taxed at a rate of 2.5%), high living standards, membership in the European Union and Cyprus being part of the Eurozone, as well as sustainable economic growth, which is also one of the fastest in Europe.

The number of companies that have relocated to the island is increasing annually. Every year, about 1,000 new companies are registered in the country. As of 2022, over 220,000 companies were registered in total, and purchases and sales of businesses are still highly popular. This suggests that Cyprus is popular, as well as commercial real estate there – both real estate that is needed to open a new company (offices and buildings) and real estate required to buy a business (stores, restaurants, hotels).

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Reasons to buy commercial real estate in Cyprus

Today, the island is not just a tourist country but also an actively developing business centre. Nicosia and Limassol now host the headquarters of international companies, and new offices in Paphos are being opened more frequently.

It means that the world community prefers this particular island for doing business and relocation. Why so?

Reasons to buy commercial real estate in Cyprus:

• optimisation of taxation through low tax rates;
• no double taxation with 67 countries of the world, including Ukraine and Russia;
• high liquidity of real estate – buy property now, and rest assured that after a while you will be able to sell it for much more;
• high demand for tourist and business properties with an average ROI of at least 8%;
• a wide range of real estate options for commercial purposes, both at the planning stage and ready-made business;
• the option of acquiring a permanent residence permit through investment for the entire family.

Therefore, buying real estate in Cyprus has numerous advantages and brings profit. However, any success depends on the initial conditions and a fundamental approach – analysis of the market, competitor products, assessment of risks and the most realistic situations. SPM Real Estate specialists can conduct such full-fledged analysis and create a custom-tailored business model for you.

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Types of commercial real estate: what are the options?

Since Cyprus is a resort where people from all over the world come to relax, the tourist industry here, like hotel sales, is most developed and in demand. However, the business sector is now gaining momentum and needs a full-fledged service, as thousands of relocated companies are looking for office spaces, hubs, and co-working spaces.

Any type of real estate can have a high payback with the right choice of location, services and determined target audience.

Types of commercial real estate:

• offices;
• buildings;
• stores;
• restaurants/cafes;
• hotels;
• shopping, business and entertainment centres;
• residential properties (compounds, villas, apartments);
• ready-made business (healthcare, services, beauty salons, entertainment, etc.).

You can buy the property at various stages of construction:

• planning stage, when there is only a construction plan available;
• at the level of the foundation pit, that is, at the very beginning of construction;
• after completion of the construction at the finishing stage;
• finished property.

Distress Property is another type of investment real estate that should not be disregarded. These are properties in need of a major renovation. This type of real estate can be very liquid after renovation and provided that the business model is functioning. However, the quality of the analysis and the correctness of risk and future profit determination are crucial too.

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Prices for commercial real estate in Cyprus

Prices depend on many factors. For example, commercial real estate in Limassol will cost more than in Larnaca, because the business centre of the country is the largest and most expensive city. Furthermore, buying a hotel in Cyprus at the planning stage and at the stage of a ready-made business also means paying two different prices.

Below are the main factors that affect the price of commercial real estate:

• location – some cities are more expensive, others are cheaper, and the cost also increases many times as you approach the sea, so a property situated along the front line will cost you much more;
• investment model – the more successful it is, the more expensive the property gets, because the forecast ROI, payback period, and rate of profitability are taken into account;
• area and floor count;
• availability of the developed infrastructure network nearby;
• adjacent territory and landscaping;
• technical specifications and equipment – whether the property has a security system, air conditioning, underfloor heating, video surveillance, etc.;
• quality of materials used in construction;
• project implementation stage – planning, foundation pit, construction, finishing, or ready-made business;
• whether it is a primary or secondary market;
• type of property, as well as the cost of an aparthotel will differ from the cost of a store.

For real estate prices, see our catalogue.

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Which Cyprus city is better in terms of commercial real estate purchase?

SPM Real Estate offers to buy real estate in the following regions and cities:

• Limassol;
• Larnaca;
• Nicosia;
• Paphos.

These cities are highly popular in terms of doing business, so most commercial real estate is represented there.

Depending on your life and business goals, our experts will help you choose the best real estate for investment.

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Choosing efficient commercial real estate on the island

Efficient commercial real estate is the one that pays off quickly, is profitable, liquid, and has high margins.

Perhaps, you may want to buy a ready-made business in Cyprus, then it is quite easy to evaluate its investment efficiency since it has been operating and bringing profit for some time and has a stable client base.

If you are looking for a new investment opportunity, such as buying a hotel in Cyprus, opening a store, or buying an entire building to rent out as office premises, then you will have to spend time building a business model, which will help you understand whether your business is going to bring profits.

When choosing a location for a successful business, you need to take into account the specifics of the city and district, as this determines the demand for a particular service. Hotels and restaurants are in demand on the tourist seafront, while offices and stores should better be located in the central areas of the city.

Our specialists have been living and working on the island for over 10 years, so they will help you choose the best location for your business and build a custom-tailored business model.

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Advantages of investing in real estate in Cyprus

When buying real estate, you get several advantages at once:

• optimisation of taxes, because the country has a very mild tax climate and one of the lowest tax rates (only 12.5%);
• high rate of return on investment — the real estate market and demand for it are growing, which enables getting a good ROI;
• life in a safe country — the island is the 5th safest place in the world, there is virtually no crime, and even petty theft is rare;
• high standard of living — the country is a member of the European Union and Eurozone and is governed by the British legal system, ensuring a high level of life for its residents;
• obtaining permanent resident status for a real estate purchase of EUR 300,000 or more under the accelerated procedure (from 2 months). Permanent resident status applies to you, your spouse, your children, and your parents. Furthermore, the permanent resident status in Cyprus is also the permanent residency of the European Union with all its advantages. 7 years after obtaining the status, you can become a citizen of the country.

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Other types of real estate to buy in Cyprus

In addition to commercial real estate, you can also buy residential property, which can be used both for living and renting out and pays off well in the beach season and year-round for long-term rentals. Types of residential real estate:

• suites or flats are part of multiunit residential compounds and most often consist of 1 to 3 bedrooms;
• a townhouse is a multiunit residential building, where each lodging has its own entrance from the street and is joined to the neighbours' housing only by two side walls;
• a villa is a detached house, that often has 2 floors, with its own territory, private swimming pool, and leisure area;
• an adjoining villa is similar to a townhouse, yet it is different in a way that the house may have only two owners, with each flat having a separate entrance, and you only share one wall with a neighbour.

Contact SPM Real Estate and buy real estate in Cyprus to make your dream of a beautiful life come true!

SPM Real Estate is your most valuable contact in Cyprus.

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