Commercial Property in Nicosia: Investment Attractiveness

Nicosia is unique because it is the only two-state capital in the world. It is unusual even within Cyprus because it is the only city on the island that has no access to the sea. In the capital, the most significant number of people live, the business environment is developed, there are offices of many international companies, and on holidays there are a variety of festivals and concerts. Every year commercial real estate in Nicosia is developing increasingly. There are tower buildings, business centers, co-working houses, and hubs. Investments in real estate in Cyprus are profitable and bring an average of 8% to 15% per annum.

Why is Nicosia attractive for doing business and buying real estate?

Nicosia is the first business center in the country. The second is the city of Limassol, whose population is only slightly smaller than the capital's. Major deals, signing contracts, meeting opinion leaders, diplomatic missions, political conferences, and visiting the world's pop stars — all this takes place in Nicosia.

First, buying commercial real estate in Nicosia is attractive because every year, Cyprus turns from a tourist mecca into a business hub, attracting giant companies and entrepreneurs worldwide.

Every year about 1000 new companies are registered on the island, some of which are relocated from other countries and have moved their business to Cyprus to optimize taxation and create a safety cushion for their business.

Since most relocating companies bring their staff to the island, this generates a high demand for commercial real estate in Nicosia and apartments and houses for rent in Cyprus near the city.

Nicosia is a significant commercial and industrial center. The region produces fabric, textiles, leather and ceramics, plastics, perfumes, and food industries. Also, most of the universities are located in the capital, among them the European University of Cyprus, the University of Nicosia, the University of Cyprus, and many others.

Also, actively developing real estate. For 2021, in Nicosia, were actively concluded transactions for the purchase and sale of real estate, thanks to which the capital has increased by 32%.

First, the business interests in commercial properties: offices, restaurants, and stores.

Buying commercial real estate in Nicosia has the following advantages:

  • low taxes for businesses (12.5% corporate tax, no tax on dividends, profits from abroad, shares, benefits on several other taxes);
  • purchase of profitable real estate due to stable growth of rental prices for 3 years in a row;
  • IT companies covered by the IP Box program can be taxed at a rate of only 2.5%;
  • no double taxation with 67 countries, including Ukraine and Russia;
  • the average ROI for commercial real estate of 8% to 15%, with an expected increase to 25-30% for some properties after 2023;
  • getting a permanent residence permit in Cyprus by an expedited procedure for purchasing real estate worth 300,000 euros and more, including VAT.

Any success depends on initial conditions and fundamental approach - market analysis, competitor products, risk calculation, and the most realistic situations. SPM Real Estate specialists can conduct a full-scale analysis and create a customized business model for you.

What kind of commercial real estate can I buy in Nicosia?

Commercial real estate in Cyprus is:

  • class A office buildings;
  • residential towers, including offices;
  • shopping centers and stores;
  • food service sector;
  • hotels;
  • medical clinics;
  • nursing homes;
  • kindergartens and schools;
  • residential facilities (villas, apartments, apartment complexes, villa complexes, mixed-use complexes).

In Nicosia, commercial real estate is mainly represented by properties:

  • office buildings;
  • residential towers with offices;
  • business centers.

You can buy property in Cyprus at the following stages of construction:

  • planning;
  • excavation;
  • finishing work;
  • finished object.

Commercial real estate is often part of a multifunctional complex, such as a tower with premium apartments, part of which is allocated for service facilities — stores, restaurants, a gym, a meditation room, etc.

How much does it cost to buy commercial real estate in Nicosia: the price and the principles of its formation

The price of real estate in Cyprus in Nicosia is higher than in many other regions of the country, as there is an undying demand for real estate properties in the capital. The cost varies greatly depending on the type of object and other factors. For example, you can buy a store or office for 300,000 euros or office space for 2 million euros.

The following factors influence the price of commercial real estate in Nicosia:

  • location — objects in the center will be more expensive than in the suburbs;
  • investment model — the more successful it is, the more expensive the object is valued;
  • the type of facility — an entire building or shopping mall will be more costly than a small store or coffee shop;
  • total area, number of floors, the height of ceilings;
  • infrastructure within the complex;
  • the surrounding area with the presence of the park area, landscape garden, and food court;
  • technology building and built-in systems;
  • the stage of the project — the stage of the foundation pit or ready-made business;
  • primary or secondary market.

You can see the prices of properties in our catalog.

Investing in Cyprus real estate: the advantages of buying and moving to the island

You already know the benefits of buying a property in Nicosia. However, such an acquisition creates a solid cushion for business and opens up many opportunities when relocating to the island. So what will a move to Cyprus bring you through real estate investment?

The pluses of moving to Cyprus:

  • the country is part of the European Union, and Eurozone is governed by British law and provides a high standard of living;
  • Cyprus is so safe that it is ranked 5th in the world for this parameter;
  • there is not a single factory on the island that pollutes the air or the land, so the environment is spotless;
  • quality products, fruits, and vegetables are fruitful all year round;
  • one of the best countries to live with children. In fact, according to the UN, Cyprus is ranked 4th in the world;
  • quality education, leading universities;
  • English schools are cheaper than in other countries;
  • 330 days of sunshine a year, perfect beaches, and a crystal clear sea.

What other property can I buy in Cyprus?

In addition to commercial, you can also buy residential real estate in Cyprus, which can be used for both accommodation and rent.

Objects represent residential real estate:

  • apartments (flats);
  • townhouses;
  • villas (houses);
  • semi-detached villa.

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

SPM Real Estate is your most valuable contact in Cyprus.

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We, SPM Real Estate team, provide our users with reliable and comprehensive information concerning buying and renting residential and commercial real estate, as well as covering variety of domestic and legal issues.

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