Research Center
Cyprus Economy

CYPRUS: First fashion outlet village to offer new shopping experience

20 April, 2019

Cyprus is set to enjoy a novelty shopping experience with plans to build the island’s first designer outlet and entertainment village in 2020.

Designed on the models of European outlet villages, which are gaining popularity across the continent, the Neo Plaza fashion outlet will be developed in the area of Kokkinotrimithia, near the new ‘Nicosia Mall’, in an area of more than 35,000 sq.m.

The companies involved in the project, Danos Real Estates, an alliance member of BNP Paribas Real Estates, and Neo Plaza Ltd, said the cite will offer an excellent mix of premium brand-name choices and entertainment for the whole family. It is scheduled to open in the Spring of 2020.

In comments to the Financial Mirror, Danos Real Estates’ CEO, Panos Danos said that outlet villages are gaining in popularity across the globe, and now is the right time for Cyprus to have its own.

“With discount designer outlets home to the world’s most prestigious luxury, designer, and premium brands offering the fashion-loving shopper year-round savings of up to 70% on recommended retail prices, the Neo Plaza outlet village is something for Cypriot shoppers to get excited about,” said Danos.

He said the outlet village will also offer a different shopping experience than that of a mall.

“Most Discount Retail Villages are within easy reach of a major city, yet each has a unique brand mix and its own architectural style, finely-tuned to the local surroundings, making each outlet a unique place to shop, meet and be entertained in”.

Danos expects the Cyprus fashion outlet village will pick up and be viable as “outlet centres have been relatively recession-proof during the recent European and USA downturn because of the discount angle. This reflects the fact that it’s still a relatively new retail format, having first emerged during the mid-1990s – so growth is starting from a low base”.

While traditional shopping centres are suffering from the rise of online shopping, analysts believe that out-of-town discount villages may be insulated from the change in habit.

“They are designed for people who enjoy the shopping experience.  The ambience is very important,” said Danos.

“In addition, fashion and footwear, which comprise most of the offering at an outlet, represent a smaller proportion of online sales, simply because people want to touch and feel these items,” he added.

Danos an Alliance of BNP Paribas Real Estate believes that open-air outlets are the most likely part of the retail market to withstand the shift to online shopping.

The sector has demonstrated not just exciting income growth, but resilience through the recent economic crisis.

The €1.5 bln TIAA Henderson European Outlet Mall fund – which invests in McArthur Glen designer malls – has achieved average annual returns of 12.5 per cent, after all fund costs, since 2004. 

Danos explained that the outlet shops will be offering products with at least a 30 to 50 per cent discount.

“But at the change of the season, when shops will be making room for the new season, shoppers could see savings of 70 to 90 per cent.  Furthermore, the centre may operate a tax-free shopping scheme so overseas visitors can save another percentage in Value Added Tax refunds”.

“Neo Plaza” village will cover an area of 35,000 sq.m. next to the industrial area of Kokkinotrimithia and will be accessible via the Nicosia - Troodos highway.

It will be located 12 km outside of Nicosia and 160 metres away from the Nicosia - Troodos highway.

The village will contain 50 discount shops, 10 cafes/restaurants, an indoor playground, 250 parking spaces and a 5,000 sq.m. green area.