Shopping centres remain the most sought-after retail location across Cyprus, consistently outpacing demand for street-level shops, with rental prices now reaching new highs as the trend strengthens in 2025.
Rental prices for high-quality retail units at popular shopping centres now reach €70 per square metre monthly, marking a sharp increase from the pre-COVID benchmark of around €45 per square metre, according to a market insight report from Danos & Associates.
The increase reflects high demand from major retailers and fast food chains, which increasingly prefer shopping centre locations over traditional high street shops.
Rising rents, especially at well-known shopping centres, have been accompanied by strong regional differences for high street retail.
New shopping centre developments remain under consideration at several locations, including expansions around Limassol, though some projects face approval or licensing delays.
Market observers note that if all proceeds, they could add significant new retail space, which may reduce pressure on existing shopping centres but could also intensify competition between them.
Sharp regional variations on high streets
Retail rents on traditional streets continue to vary significantly by city and location, much more than shopping centre rents.
According to 2025 research from Landbank Analytics, Limassol leads with average retail rents around €39 per square metre monthly, with high-quality spaces reaching up to €94 per square metre monthly.
Nicosia is the most affordable option, with average rents around €12 per square metre monthly and a ceiling close to €23 per square metre monthly.
In Larnaca, coastal area demand pushes average rents to around €18 per square metre monthly, with some shops reaching up to €35 per square metre monthly.
In Paphos and small market areas such as parts of Famagusta, supply remains limited. Average retail rents sit around €12 per square metre monthly, with rare peaks around €14 per square metre monthly.
The figures demonstrate a significantly divided retail market: premium segments in shopping centres or high street locations versus more moderate, risk-sensitive retail on secondary streets or in smaller towns.
Nicosia and Limassol high streets diverge
Nicosia’s high street retail concentrates mainly on Ledra Street, Makarios Avenue and surrounding city centre roads. Ledra Street benefits from intense pedestrian traffic due to offices, tourism and cross-border movement, making it attractive for fashion and food businesses.
Makarios Avenue has undergone a transition from luxury retail to a mix of mid-range brands, services and food, reflecting changing consumer habits.
Overall, Nicosia’s high streets face challenges from limited parking and competition from shopping centres, but remain important for convenience retail, cafes and services.
Limassol’s high street market is stronger and more dynamic, led by Anexartisias Street, Makarios Avenue and seaside areas. Anexartisias is an established pedestrian street with steady traffic and a mix of fashion shops, value retail and food.
Makarios Avenue is repositioning towards offices, banks and lifestyle uses instead of pure retail. Tourist areas near the marina and beach benefit from higher spending but show strong seasonality.
Overall, Limassol’s high streets are performing well due to population and tourism growth, though rising rents and competition from shopping centres and new developments remain key pressures.
Shopping centres command a premium over high streets
Across Cyprus, shopping centre rents continued to exceed street-level retail levels. High-quality units in top shopping centres achieved rents between €55 and €70 per square metre monthly, supported by exceptionally high occupancy and interest from international fashion brands and food stores.
The trend reinforces a structural shift towards controlled, climate-managed retail environments with strong anchor tenants and predictable footfall.
Retail sale prices in 2025 showed less variability. Whilst residential and logistics sectors continue to outperform in capital appreciation, retail assets remain attractive mainly as income-producing properties rather than for rapid capital growth.
Limassol maintains the highest sale price range at €5,400 to €6,300 per square metre, whilst Paphos and Famagusta remain the most affordable.
Future outlook favours mixed-use developments
New commercial developments planned for late 2025 are expected to focus on mixed-use formats, sustainability requirements and smaller, strategically placed retail footprints instead of large shopping centres, the report states.
Retailers are placing greater emphasis on digital integration, inventory efficiency and experience-based spaces to maintain competitiveness. Local authorities are prioritising projects supporting neighbourhood-level commercial activity and balanced urban development.
Investors remain active but more selective, with demand stronger for properties offering long-term stability and energy-efficient specifications.
Shopping centre attractiveness remains high among tenants, with both local and international retailers continuing to prefer shopping centre locations due to footfall, convenience and stability.
Sale prices for retail units, especially on high streets, have seen limited publicly documented updates in 2025.
Recent broader property indices from KPMG in Cyprus and RICS indicate that whilst residential values and rents have risen moderately, retail spaces continue to underperform compared to residential and warehouse sectors.
For established chains and retailers prioritising stability and high footfall, shopping centres remain the top retail format, justified by both high demand and willingness to pay higher rents.
Street-level retail remains viable but exposed to large fluctuations depending on city, neighbourhood and consumer traffic. Investors or tenants should carefully evaluate location factors including main road versus secondary road, tourist or coastal versus inland, and footfall patterns.
Given rising shopping centre rents and limited vacancy on high streets, retail space remains a competitive high-demand asset category, but with increasing polarisation between premium shopping centres and high street shops versus lower-tier high street retail or small towns.
The subdued growth in retail property sale prices relative to residential signals that many buyers or investors still view retail as leasing rather than necessarily as a long-term capital growth asset.