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Cyprus: House Prices, Rents, and Rental Yields

Last Updated: Aug 27, 2009

Yields in Cyprus stable

Last Updated: Aug. 27, 2009
NICOSIA - Apartments COST (€) YIELD (p.a.) PRICE/SQ.M. (€)
TO BUY MONTHLY RENT TO BUY MONTHLY RENT
60 sq. m. 114,780 538 5.63% 1,913 8.97
90 sq. m. 165,600 629 4.56% 1,840 6.99
120 sq. m. 202,560 766 4.54% 1,688 6.38
200 sq. m. 297,200 1,116 4.51 1,486 5.58
LIMASSOL - Apartments
60 sq. m. 176,460 620 4.22% 2,941 10.34
90 sq. m. 256,680 771 3.61% 2,852 8.57
120 sq. m. 329,760 883 3.21% 2,748 7.36
200 sq. m. 520,400 1,798 4.15% 2,602 8.99
PAPHOS - Apartments
55 sq. m. 96,470 368 4.58% 1,754 6.70
80 sq. m. 154,320 486 3.78% 1,929 6.07
120 sq. m. 199,080 586 3.53% 1,659 4.88
LARNACA - Apartments
45 sq. m. 82,980 347 5.01% 1,844 7.70
70 sq. m. 118,790 475 4.79% 1,697 6.78
90 sq. m. 151,830 538 4.25% 1,687 5.98
120 sq. m. 195,720 625 3.83% 1,631 5.21
200 sq. m. 261,000 704 3.24% 1,305 3.52
Source: Global Property Guide                    Definitions: Data FAQ                       See also: Update Schedule

Yields in Cyprus stable

Property prices in Cyprus have risen fast over the past few years - 2007 was a spectacular year.  Since the beginning of 2008 the market has stalled, largely due to the withdrawal of British buyers, who have suffered from the fall of the pound sterling against the Cypriot pound, which is pegged to the euro.

However rents have risen along with buying prices over the past 4 years years.   So with the exception of Paphos, which has suffered a decline in larger apartment yields, rental yields on apartments in Cyprus’ major cities have been stable.

Present yields levels mirror those of 4 years ago:

Average gross rental yields in Cyprus:


  • Nicosia apartments: 4.81%
  • Larnaca apartments: 4.22%
  • Paphos apartments: 3.86%
  • Limassol apartments: 3.79%

Readers of the Global Property Guide will know that we prefer not to buy property at this kind of yield, and would rather rent.  But given Cyprus’ rather stable price/rent ratios, it doesn’t seem that Cyprus property is very risky.

 

Your Comments

posted by Angela | 2007-05-19

Property Consultant, Cyprus

I live in Cyprus have done for may years, and these figures are not very good as guidance. Also Nicosia and southern Famagusta are not mentioned. Yields in Nicosia are very good at the moment, demand is strong and increasing, no over supply. Average yields in the south vary from 4 to 8% depending on location and demand. Also I just bought a new 150m2 apartment in the centre of Limassol for CYP147,000 (GBP172,000) and it is now renting for CYP600 a month (GBP 702.00). Trust me your property price and rental figures are way off.

posted by Nigel Howarth | 2008-01-16

Independent Property Advisor, Cyprus

The figures are no doubt depressed by the unrented/unrentable jet-to-let holiday properties in the tourist areas. This will depress the numbers considerably. Good property in a good location will produce higher yields than indicated.

posted by Leonidas | 2008-01-21

Agent, Pafos, Cyprus

I live and work in Cyprus for all my life!! In my opinion, the numbers shoulb be taken from a valid source like a government department. A standard three bedroom villa for rent in Coral Bay, Pafos would cost around €240 per day; 1680 euro per week!!!

posted by Nigel Howarth | 2008-01-23

Independent Property Advisor, Erimi, Cyprus

But Leonides, how many weeks/year would you expect to rent a holiday home in a tourist area? 14, 15 or 16 if you're lucky. A more sensible investment strategy is to buy property in a residential area in the suburbs of Nicosia or Limassol where there's always a steady demand for long-term (one year and more) rentals from businessmen/women and their families. Although the weekly rate you achieve will be lower, this will be more than offset by the longer rental periods you'll achieve.Looking at the Paphos area, some developers seem to be getting desperate - I've seen one offering guaranteed rental returns of 15% per annum for the first two years and another is giving away a new car to house buyers. (Needless to say the cost of these 'incentives' will have been factored into the selling price).

posted by Nigel Howarth | 2008-05-14

Independent Property Advisor, Erimi, Cyprus

Interesting news in the local media today:Cyprus Mail: "Property sales down in 2008" - http://www.cyprus-mail.com/news/main.php?id=39178

posted by our Editor: Matthew Pollock | 2008-05-14

Thank you Nigel

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