Rental returns in Cyprus are moderate, but property is inexpensive

Property prices. Property is not expensive in Cyprus, with prices around €1,300-1,800 per square metre (sq. m.). Smaller properties cost rather more per sq. m. than larger properties.

Property rents. Apartments of 120 sq. m. cost around €700-€800 per month to rent in Larnaca and Nicosia, and probably more in Limassol, though this year we were not able to find enough properties to bring you reliable figures.

If you are buying specifically with a view to renting out your property, very small apartments in Nicosia appear to give you higher yields. It is not obvious why the difference in yields between 50 sq. m. apartments in Nicosia and 120 sq. m. apartments should be so large, whether this is some kind of research error or what. For the moment, we report what we have found.

Property returns. Cyprus has not traditionally been a great location to be a landlord, because of moderate rental returns. But while gross rental yields in Cyprus have remained steady over the years, they have fallen almost everywhere else as a result of the asset-inflationary effects of low interest rates. Result: Cyprus now looks comparatively attractive as a place where buying prices are low, so that capital gains on property are conceivable. However, it is always extremely hard to forecast which locations international buyers will seize upon as attractive.

Property buying costs. Round trip transaction costs on the purchase of old residential property in Cyprus are moderate, but VAT on new properties is high. See our Cyprus residential property Buying-Guide and Cyprus property transaction costs compared to the rest of Europe.