Commercial Property Value in Paphos, Cyprus
How to define the Value and the selling / rental potential of your commercial property / business in Paphos - Cyprus
Maybe you are the owner of a shop, office or a retail unit in Cyprus and you want to find out how much it worth if you decide to sell it.
There's a range of key factors that can affect positively or negatively the value of your commercial property or business in Paphos - Cyprus.
FACTORS AFFECTING COMMERCIAL PROPERTY VALUE
On the other side, we have the potential investors interested on buying commercial properties in Paphos – Cyprus and the step no 1 is to understand the factors affecting commercial property value and how a business will be supported by the commercial property.
The most essential information for an investor is to know the “Return of Investment” (ROI) and how the commercial property will support their business in case that they will use it for their own purposes. There are many factors that affecting the value of a commercial property in Paphos - Cyprus, but the most essential is the location and the services / amenities where provided. As well, it’s very important that the commercial property to be supported by efficient transportation links and retain easy access by foot / car and public transportation. The local amenities near the commercial property in Paphos it’s also a crucial factor as amenities within the same area will act as a customers magnet for the business where will be housed by the commercial property. Finally, the property characteristics affecting as well the value of a commercial property in Paphos as the property characteristics playing an important role to the market value for sale or rent where is immediately connected to the Return On Investment calculations of the potential buyer – investor.
We have broken down some of the crucial elements that can impact the commercial property value.
LOCATION
One of the most important factors affecting the value of the commercial properties in Paphos, is the location, including the transport links in the surrounding area where provide access to the commercial property in Paphos. Any commercial property development within the surrounding area is also an important factor which influence the market value. In a business area where the infrastructures development meets upgrade and continuous demand for new property developments then the property values experienced by a positive trend.
The presence of efficient transportation links and other services in the vicinity of the property helps increase the property value, and as such the valuation of properties with better infrastructure capabilities and modern amenities are generally higher than those which fail to provide it. Access to transport is another crucial aspect that can affect the value of your property considerably. The more modes of transportation that your unit is connected to, the higher the value will be. The more popular and accessible your property is, the more valuable it will be. Take, for example, an office space in Paphos near the district court, or a shop near the harbor. Both areas are well connected to arterial roads, has access to the public transportation, and has many car parking space. This will have a higher value than an office or a shop in a remote area of Paphos with very few amenities.
Depending on the preferences of your business customers, some amenities will more important than others. Banks, Kiosks, Bakeries, Pharmacies, Cafes, and other retail establishments in close proximity to your unit will help increase its value. Other facilities such as clinics or hospitals can also affect the value of the property. That is what we called customers magnet. Its like a pharmacy next to the hospital or a copy center next to the university.
PROPERTY CHARACTERISTICS
Generally speaking, the more exposure the property supports the more valuable it will be. The property size – dimensions but most important the window that has if we talk about a shop in Paphos. For an office space with extra spaces commanding higher prices. With that being said, whilst your unit may cover a large amount of square meters, this is only useful if the space is actually usable. A good way to optimize your property’s value is to ensure that all available space is utilised. This might mean changing the configuration of your unit and opening up areas so there is more room and space for the end-user to conduct business.
The type of buyer / tenant for your property can help determine the value of your property. You should consider who your property will be best suited for and if there is a high demand from these users. As such, where possible, you should optimize your unit so it is best suited for the type of end-user you are trying to attract. It’s important that you property to not need major repairs / works in order to become habitable. Due to the high temperature that we have in summer time, the property will need efficient cooling system. Also, it will be nice that the hygiene areas of the property to be well maintained.
Commercial property in Paphos that doesn’t have the functionality to meet current market demand, will have the potential to be unable to satisfy potential end users and therefore be less valuable. If your unit is designed to be used as an office, then as the owner, you should ensure that the space can function as an office space.
PROPERTY CONDITION
The quality of the building also plays an important part. A brand new, modern building, will generally be valued higher than a run-down unit that has not been kept up well. Pay attention to building ratings, and how your asset compares to other similar properties in the area. This follows on to make sure that your property is well maintained. The asset should not just be visually appealing but should have a well-maintained interior and exterior. Those first impressions can be critical even when it comes to securing a viewing. Minor improvements such as painting and deep cleaning can be very effective with small capital expenditures.
Any upgrades to your unit would be welcomed by potential buyers, especially if they improve the property’s potential to make a higher profit. What’s more, there is an increasing number of companies that are making it a goal to be more environmentally sustainable. As such, making environmentally concise improvements can increase the value of the property by reducing operational costs. This could be as simple as insulating the property and switching to efficient light bulbs or installing inverter Air conditionings. If you are looking to attract large companies, more of them will have corporate social responsibilities and will only occupy energy approved assets. With that being said, whilst making improvements can make your property more attractive and drive the price up, cost does not necessarily equal value, so plan carefully what and how much you spend on improving the unit.
Smaller improvements such as a fresh lick of paint, fixing any minor repairs, doing a professional clean, including carpets, will all make your property more attractive to potential buyers and do not cost a lot of money. However, first impressions do count, so both the interior and exterior of your property should be well maintained.
PAPERWORK - PERMITS & CERTIFICATES
Another major factor that can affect the value of a property, is whether you have all the necessary paperwork. Do you have your licenses in place where will allow the business to run legally. For a restaurant it will be necessary to have a few licenses – certificates where will set the commercial property ideal for the business where will be installed. Have you got all your approvals? What’s more, a property that has planning permission to extend or make any significant changes will also improve the value as it will enable greater opportunities for the unit.
Whilst these are all factors that can affect the value of your property, it is worth noting aspects of your unit that will not be included in a valuation. Generally speaking, a valuation will include all non-moveable assets within the property, such as the size, layout, specification, condition, and views. A valuation will therefore exclude furniture, plants, machinery and any equipment within the unit.
As you can see, there are many factors that come into play when determining the value of a commercial property. If you require a thorough and comprehensive valuation report, contact us today to book a consultation with one of our valuation experts in Cyprus.
