The pressures have begun for property owners who have to deal with the pressures for lower rents than they were accustomed to in the years before the pandemic. Going through the third phase of the restrictions imposed by the Republic of Cyprus, a barometer for the configuration of rents in stores as a result of the effects and the course of COVID-19, is expected to be the next quarter. From March and April, if the epidemiological picture improves, it will be clear how many stores or offices can withstand the reopening under special conditions.
According to information from “Φ”, the phenomenon has already been observed of several tenants asking for reductions from the owners, due to the fact that they have been under-operating for a long time. Catalyst factors in the decisions that will be made by property owners, whether to reduce prices or not and at what height, are the position and condition of their property, the demand that may be recorded, but also how much they are pressured financially themselves.
In any case, the conciliation between tenants and landlords will play a crucial role, in order to maintain their employment relationship and to normalize the market situation as soon as possible. However, as mentioned in “F”, some landlords are in negotiations regarding the revision of the rents or the terms of the contracts that were signed in the period before the pandemic.
