The property market in the capital is attracting strong interest from investors, as another multimillion project is in the pipeline.
According to Kathimerini Cyprus edition, a new investment exceeding €60 mln is currently in the study phase, focusing on the development of a strategically positioned plot in Nicosia, on the capital’s busy Limassol Avenue.
The investment involves the construction of a luxurious five-story building that will include apartments, office space, restaurants, and healthcare services.
As reported, the development is being undertaken in collaboration with an internationally renowned architectural firm with extensive experience in office facilities, retail spaces, residences, leisure, and mixed-use projects.
The developers of the project, taking into consideration the prevailing market conditions, will not be seeking to sell apartments and office space but instead, lease the properties.
The rationale behind this approach is that due to high-interest rates and inflationary pressures in the market, pitching sales will be challenging.
Developers believe that rental options may find more traction, at least in the current stage.
The decision to lease instead of selling the property may, of course, change in subsequent stages when market conditions become more favourable and repayment becomes objectively more feasible.
It is not the only multimillion housing and office project in the area, indicating a growing interest in the capital.
Works are in progress for two residential towers located within the outdoor area of the Landmark Hotel, formerly the Hilton Cyprus.
This investment amounts to €70 mln and entails the development of two tall buildings, a seventeen-story residential structure comprising 53 apartments and a sixteen-story high-rise building designated for office purposes.
The combined gross floor area of the residential and office buildings is 13,794.60 sqm and 26,640 sqm, respectively.
Real estate agents have been reporting that the market for office and commercial properties has seen solid demand despite pressures from soaring inflation, boosted by companies eyeing a base in Cyprus.
In recent comments to the Financial Mirror, Loucas Georgiou, Head of Property Studies & Valuations at BNP Paribas/ Danos Real Estate, said: “The war in Ukraine has pushed up the cost of living and business operational costs; however, it is also powering the increase in interest for office and commercial space, as many companies, previously based in Ukraine, are eyeing Cyprus as an alternative base”.
