Cyprus is experiencing an office deficit.
Almost 90% of Class A office spaces in Cyprus have already been rented or are owned by companies, according to Kalinka Group.
Experts emphasize that having an office is a mandatory requirement for companies that are residents of Cyprus. Therefore, foreign firms, which are relocating their branches to the republic, are forced to either rent or purchase an office space.
Currently, the situation is such that there is a severe shortage of Class A office spaces, which are highly sought after by companies choosing Cyprus as their base.
According to Ekaterina Rumyantseva, the Chairman of the Board of Directors at Kalinka Group, until recently, there were no separate office centers even in major cities. Workspaces were located on the ground floors of residential buildings.
"The situation with the construction of office buildings has now changed, but the most active business districts still have no vacant spaces. For example, on Makarios Avenue, the central and main street of Limassol, densely populated with office centers, it is practically impossible to find available premises," emphasizes Ekaterina Rumyantseva. As learned by "PRAVDA.Ru", currently in Cyprus, up to 65% of the demand is for rentals. About 35% of business owners purchase office spaces as their own property. In Limassol, the average rental rate for Class A offices ranges from €40 to €60 per square meter. According to analysts, the recently issued directive of the Central Bank of Cyprus, which requires commercial banks to close accounts of offshore companies, can further stimulate demand for offices.Read also
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