Nicosia office market shifts toward energy efficiency and modern infrastructure

In July 2026, the office market in Nicosia displayed signs of increasing segmentation, as modern, energy-efficient buildings gained a significant competitive advantage over older, outdated properties. According to a report by the Danos firm, demand in the capital remains robust, but the criteria for office selection have fundamentally evolved away from simple metrics like size and location.

Companies now prioritize technical and operational performance, including energy efficiency, adequate parking capacity, fiber-optic connectivity, advanced ventilation, and robust fire safety systems. Other critical factors include backup power, flexible floor plans, natural lighting, and clear agreements regarding fit-out costs. These modern buildings are currently commanding higher rental rates, while older properties are facing mounting pressure and are increasingly relegated to serving as low-cost alternatives or redevelopment projects.

The findings, supported by data from RICS and KPMG, suggest that the total cost of ownership and technical adaptability have become the primary drivers of investment and leasing decisions. The market transition reflects a broader trend where developers must modernize existing assets to maintain relevance against high-spec new construction.