Cyprus Retail Property: Strong Sales and Cautious Investors

Strong consumer demand was recorded in the Cyprus commercial property market in the first half of 2026. Retail sales and shopping-centre footfall increased. At the same time, property values and rents changed little, while investors remained cautious, according to a DANOS report.

Cyprus retail turnover accelerates

Between January and May 2026, retail turnover in Cyprus increased by 7.1% compared with the same period of 2025, while retail volume rose by 5.9%. The most significant acceleration was recorded in May, when the indicator increased by 8.4%.

According to Eurostat, Cyprus recorded the strongest result among EU member states. By comparison, retail volume across the EU rose by 1.9%. Cyprus also posted the highest monthly growth, with sales increasing by 3.7% compared with April.

DANOS notes that a single month cannot automatically be viewed as a sustainable growth rate. Nevertheless, the structure of demand is favourable for physical retail, as the strongest increases were recorded in categories traditionally associated with in-store shopping.

Clothing, footwear and technology lead demand

In May, clothing and footwear sales in Cyprus increased by 19.4% year on year, while sales of information and communication equipment rose by 17.6%. The report provides two indicators for household equipment: its value increased by 12%, while sales volume rose by 13.3%. The value of cultural and recreational goods, including books, sports equipment and toys, increased by 10.1%. Automotive fuel sales declined by 3.8%, while fuel prices rose by 20.9%.

All major shopping centres in Cyprus that disclosed first-half figures reported higher footfall. Mall of Cyprus recorded a 7% increase, while Mall of Engomi saw footfall rise by 10%. At Nicosia Mall, visitor numbers increased by 4.5% and turnover rose by 9.2%. MyMall Limassol was undergoing refurbishment, but visitor numbers still grew by 10% and sales increased by 12%.

Retail property yields remain low in Cyprus

Retail properties do not yet appear particularly attractive to investors. Retail capital values rose by only 0.72% year on year, while rents increased by 0.66%, according to the RICS/KPMG index for January–March. This was the weakest result among the main property segments.

On a quarterly basis, the value of retail properties in Cyprus remained unchanged. Limassol and Famagusta recorded slight increases, while Paphos saw a minor decline.

By comparison, apartments, houses, warehouses and offices recorded stronger capital growth. The retail property yield stood at 5.77% in the first quarter, compared with 5.78% a year earlier.

Limassol leads other cities in rents

A review of advertised retail premises conducted by DANOS on 6 June 2026 shows a significant gap between Limassol and other Cyprus cities. Limassol had 48 advertised properties, with an average asking rent of €40 per square metre per month. The highest asking rent reached €95.

Nicosia had more listings, at 84, but asking rents ranged from €10 to €25 per square metre. Larnaca had 22 premises, with rents ranging from €20 to €35. Paphos had 17 listings, at €10–€15, while Famagusta had 10, at €8–€10.

These figures reflect asking rather than agreed rents. They do not represent a comprehensive rental index and should be used only as a snapshot of market supply at a particular point in time.

In Nicosia, parking, delivery access and unit configuration remain important on Ledra and Onasagorou streets, Makariou and Stasikratous avenues, as well as on suburban retail corridors.

In Limassol, demand is concentrated around Anexartisias Street, Makariou Avenue, the seafront and marina-linked destinations. In Larnaca and Paphos, tourism and seafront regeneration influence selected locations, but the smaller number of listings and seasonal demand require an individual assessment of each property.

New retail space is being added in Cyprus

In Nicosia, the ZANCON 31 complex is being built with five retail units covering approximately 543 square metres in total. Parking, a loading and unloading area, pedestrian access, and separate vehicle entrances and exits are planned for customers and tenants.

In July, the Cyprus Cabinet approved the construction of Limassol Mall in the Agios Athanasios area. The investment is estimated at €95 million. The project includes three roundabouts, road widening and junction upgrades. Once these conditions are met, construction could take at least two years.

In western Limassol, D. Zavos is also developing a concept for a Retail & Office Park near MyMall and City of Dreams. The project includes large-format retail units, offices, storage facilities and 182 parking spaces. DANOS notes that the project parameters remain preliminary and may change.

International brands show interest in Cyprus

During the first half of 2026, DANOS recorded interest in the Cyprus market from international companies. Sportswear brand lululemon is considering entering Cyprus and is looking for premises in major shopping centres or premium lifestyle locations.

Pet store chain Pet City is examining options for flagship and regular stores, as well as additional support space. Ice-cream producer Lucciano’s is looking for locations with high pedestrian and tourist traffic, including shopping centres.

Foot Locker is focusing on existing shopping centres and popular urban retail streets. Leroy Merlin is interested in large-format properties, including retail parks, commercial complexes and premises that could be built specifically for a particular tenant.

Demand for retail space is becoming more diverse. Tenants are seeking not only standard clothing stores, but also small units for cafés, mid-sized stores, flagship locations and large premises for home-improvement retail.

Investors choose properties with stable income

DANOS experts believe that shopping centres with high occupancy, stable footfall and strong anchor tenants will remain the most sought-after assets. They are likely to outperform less successful properties.

On the main retail streets, premises for cafés, lifestyle stores and convenience retail are expected to remain the most attractive. Owners of poorly designed or hard-to-access units may have to reduce rents or find alternative uses for their properties.

Limassol is expected to attract most investor attention. The approval of a new shopping centre will increase supply over the medium term, while the Zakaki area is gradually developing into a cluster for large-format retail and entertainment.

Analysts at International Investment note that Cyprus retail property currently generates relatively modest rental income, while property values are rising slowly. This also applies to popular locations with strong demand. Performance may improve in the future, but such growth cannot be guaranteed. Investors should therefore compare the entry cost with the potential profitability of each property.