In Cyprus, in the near future, a noticeable increase in expenses for businesses is expected, associated not only with rising electricity prices but also with a revision of rental rates in state industrial zones. These changes will affect companies operating in 18 industrial areas across the island and will become an additional burden amid overall inflation.
The decision to adjust rental rates was made taking into account the consumer price index. According to official data, the index increased by 0.13% for the period between 2024 and 2025, and in accordance with current rules this automatically led to an increase in rental payments.
Where rent is the highest
The highest rates are recorded in the Kokkiniotrimithia industrial zone. Here, rent for new residents in 2026 reaches 7,021.37 euros for a plot of 1 thousand m2. There are 41 plots in this zone, and it remains the most expensive for doing business.
Second place is occupied by the Vasiliko energy and industrial zone, where rent amounts to 4,064.14 euros per 1 thousand m2. This is followed by industrial zones in the Agia Varvara area in Paphos, where the rate varies from 3,836.11 euros to 3,751.71 euros.
In the Ypsonas industrial zone, rent for new tenants in 2026 is 2,982.14 euros per 1 thousand m2. There are 122 plots here, making the area one of the key locations for industrial development in Limassol.
Average price levels by region
In the Aradippou industrial zone, the rental rate reaches 2,211.26 euros, and in the industrial-commercial zone of the same area — 1,228.54 euros. In total, there are 101 plots here.
In the Ergates zone, rent averages from 1,991.03 euros to 1,454.35 euros. Altogether, these territories include 115 plots and remain important for small and medium-sized businesses.
In the Agios Athanasios area, rent reaches 1,656.38 euros per 1 thousand m2, while the zone includes 170 plots. In the Larnaca industrial zone, the rate is set at 1,026.62 euros, with a total of 136 plots available.
In Frenaros, prices vary depending on the phase of development: from 505.99 euros to 1,544.49 euros, making this region one of the most affordable in Cyprus.
The most affordable zones for rent
The lowest rates are recorded in the Frenaros industrial zone, where rent starts from 505.99 euros. Slightly higher prices are in the Athienou area — 509.84 euros, as well as in the Mesogi industrial zone in Paphos — 554.76 euros per plot.
In the industrial zones of Strovolos (Nicosia) and Limassol, rent is set at 1,141.08 euros. In Strovolos, there are 89 plots, and in the Limassol industrial zone — 126, making them some of the most active business areas.
Revision of the rental system and government plans
The issue of rental costs in industrial areas is being discussed at the state level. The authorities of Cyprus are considering the possibility of introducing a unified system for calculating rates to make them more transparent and fair for all entrepreneurs.
The Ministries of Trade and Interior emphasize that the goal of the reform is to prevent excessive price growth, especially in areas with active development such as Strovolos and Limassol. Work is underway to update the regulatory framework, and after the approval of new rates, amendments to legislation will be required.
What this means for the economy of Cyprus
The increase in rental rates is occurring against the backdrop of rising energy prices and the overall cost of doing business. This increases pressure on small and medium-sized enterprises, which form the backbone of Cyprus’s economy.
At the same time, the authorities are trying to maintain a balance between state revenues and support for entrepreneurs. It is expected that further reforms will help create a more sustainable and predictable business environment despite economic challenges.