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The Phenomenon of Goodwill (aeras) on Cyprus Commercial Properties |
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Written by Cyprus-Estates.Net
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Saturday, 13 October 2007 |
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Cyprus has experienced over the last years the phenomenon of locational goodwill payment (locally known as "aeras") which refers to the payment made by incoming tenants (in addition to the rent) to sitting tenants, in order to induce the sitting tenant to vacate and thus the new tenant securing commercial accommodation.
This new "business activity" appears mainly within the towns' commercial centres and in touristic areas, where there is a high demand for commercial accommodation with limited supply of vacant shops. This rather sudden and sharp increase in the demand for commercial property has come about due to the following main reasons:
(a) The Turkish invasion has displaced 200.000 people who have settled mainly around and within the towns, increasing the towns' population by approximately 30% (but without an analogous increase in the towns' commercial centre).
(b) The sudden and sharp increase of tourists in the touristic areas, especially at Ayia Napa and Paphos, has caused a shortage of commercial accommodation.
(c) The prevailing Rent Control system, which limits eviction of tenants and as such newcomers cannot find easily empty property.
(d) New trends in business, such as the creation of fast food chains, cafe, bars, new fashion brands etc, require central localities and specific locations.
(e) The change of commercial uses of central areas with high return activities (see for example Makarios Avenue in Nicosia-cafes) has placed an added pressure for central localities.
(f) The shortage of commercial building sites/new developments which came about with the new town planning zoning limitations. The new 1990 zones have restricted commercial development to very few localities, creating thus a shortage of new accommodation in the market.
Although commercial development takes place also within the towns' periphery, a number of commercial uses cannot locate successfully other than the towns' centre. As such high fashion shops, luxury goods, entertainment for locals, trendy cafes, bars etc need to be within the town. |
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Last Updated ( Saturday, 13 October 2007 )
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Cyprus General Information |
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Written by Cyprus-Estates.Net
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Saturday, 13 October 2007 |
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 Cyprus Flag
Κυπριακή Δημοκρατία
Kypriakí Dimokratía (Greek)
Kıbrıs Cumhuriyeti (Turkish)
Republic of Cyprus
Cyprus Flag Cyprus Coat of Arms
Population in towns:
- Nicosia 190.000 (Capital)
- Limassol 149.000 (main commercial port)
- Larnaca 66.000 (commercial port + main international airport)
- Paphos 37.000 (second international airport)
The towns of Ammochostos (Famagusta) and Kyrenia in the eastern and northern parts of the island respectively, are currently under the illegal occupation of the Turkish army. |
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Last Updated ( Saturday, 13 October 2007 )
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