Limassol most expensive for shop rent and sale prices

Despite the economy recording a strong growth rate of 6% in 2022, the retail sector took a severe hit from negative international developments, such as the war in Ukraine, a supply chain shock and high interest rates.

As such, the retail market is currently going through one of its most difficult periods in modern history, according to the Danos Cyprus Real Estate Market Report for the 2nd Semester of 2022. Retail sales MoM averaged 1.20% in Cyprus from 2000 until 2022, reaching an all-time high of 38.60% in May of 2020 and a record low of -43.30% in January 2013.

Citing the Cyprus Retail Sales MoM report, Danos reports that to buy a shop in 2022, it cost on average €5,500 per square metre in Limassol, €4,000-€5,000/m2 in Nicosia, and between €2,000-€2,500m2 in Larnaca, Paphos and Famagusta (Ammochostos).

In terms of shop rent prices per square metre, it cost €20 to €45 in Limassol, €15 to €45 in Nicosia, €10 to €25 in Paphos, €10 to €20 in Famagusta and €6-€20 in Larnaca.

When it comes to buying a shop on the busiest high streets of Nicosia and Limassol, a comparison of the prices from 2016 to 2022 shows that it cost around €4,500/m2 to buy a shop on Archbishop Makarios Avenue in Nicosia in 2022, compared with €2,500/m2 in 2016. On the capital’s Ledra Street, prices doubled from €2,500/m2 in 2016 to €5,000/m2 in 2022, while on Stasikratous Street, prices went up from €2,000 in 2016 to €5,000/m2 in 2022. The prices on Stasikratous Street recorded one of the sharpest increases in 2021, going from €3,000/m2 in 2020 to €5,000/m2 in 2021, though remaining stable in 2022.

Once again, Limassol was the most expensive in terms of shop space in 2022, costing around €6,500/m2, which was a significant rise from €2,500m2 in 2016.

According to the Danos report, the Cypriot economy experienced a strong growth rate of approximately 6% in 2022, considerably higher than the Finance Ministry’s initial estimate of 2.7%. “Despite Russia’s war in Ukraine, which began in February 2022, the growth rate rose to 6.6% in the first quarter of the year, 6.3% in the second quarter, and 5.4% in the third quarter.”

Industrial output slid 1% year on year in October (September: -1.3% y-o-y). Meanwhile, annual average industrial production growth dropped to 1.9% in October (September: +2.2%), marking an over one-year low.

In terms of unemployment, it increased to 7.7% in December 2022 compared to 6.4% in December 2021 (according to the Labour Force Survey, in monthly seasonally adjusted terms

Inflation (HICP) in December 2022 increased by 7.6% compared with an increase of 8.1% in November 2022. For the period January-December 2022, it stood at 8.1%.