Manufacturers operating for decades in the Strovolos industrial zone face steep rent hikes with their contract renewals against a backdrop of significant land value increases in the area.

According to a Federation of Employers and Industrialists representative in Brief, the surge in rents imposed by the Department of Lands and Surveys stems from the recent appreciation in land value. The renewal of contracts, based on the current formula, could lead to rent increases of up to 200%.

Particularly in the Strovolos Industrial Zone, where various developments have multiplied land values in recent years, around 50 local industries seem poised to bear the brunt of these hikes.

The representative explained that since the contracts span 33 years and the land value in Strovolos has skyrocketed, the impending renewals could mean substantial rent escalations. For instance, one manufacturer currently paying €60,000 in rent may, due to the land's increased valuation, face a new annual rent between €300,000 and €400,000.

It is important to note that in these areas, the state only rents out the land, while the infrastructure—buildings and factories—has been developed through the manufacturers' investments.