Multinational companies and their staff in Cyprus are driving demand for energy-efficient buildings, despite increased construction and renovation costs, according to Danos International Property Consultants & Valuers.
The Cypriot market has embraced sustainable construction and renovation to meet modern user needs, as approximately 70% of the country’s buildings were constructed before 1980 and fail to meet current EU energy efficiency standards.
Danos reports that upgrading existing buildings to meet new standards costs between €7,500 and €30,000 per property. Despite this, demand persists, particularly from multinationals requiring certified energy-efficient spaces.
According to Danos, construction costs will increase by 10-20% in coming years, due to EU requirements for greener buildings. The firm also noted that environmentally friendly properties command up to 20% higher selling or rental prices compared to standard buildings.
New EU regulations, if adopted into local legislation, will require zero emissions for all new buildings from 2028. From 2025, subsidies for traditional heating systems will be prohibited, and by 2040, no central heating systems using oil or gas should be in operation.
The report by Danos highlights that despite higher initial costs, green buildings can reduce energy costs by 20-40%, water consumption by 10-30%, and maintenance costs by 10-15%. This allows for 10-20% higher rents compared to conventional buildings.
Danos also noted that many companies are adopting Environmental, Social, and Governance (ESG) criteria in their corporate policies, further driving the demand for sustainable properties.
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