Rental returns in Cyprus are reasonable, while property is inexpensive
Residential Valuation Specialist | August 31, 2018
|Last Updated: Aug. 31, 2018|
|LARNACA - Apartments||COST (€)||YIELD (p.a.)||PRICE/SQ.M. (€)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|75 sq. m.||126,450||544||5.16%||1,686||7.25|
|LIMASSOL - Apartments|
|75 sq. m.||166,200||n.a.||>n.a.||2,216||n.a.|
|150 sq. m.||507,000||2,051||4.85%||3,380||13.67|
|NICOSIA - Apartments|
|75 sq. m.||131,700||619||5.64%||1,756||8.25|
|120 sq. m.||201,360||796||4.74%||1,678||6.63|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower.
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Property prices. Property is not expensive in Cyprus, with prices around €1,600-3,4000 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.
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.
Rental returns (yields) on property in Cyprus are around 4.7% to 5.6%.
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.
Buyers should beware serious problems with property titles in Cyprus, an issue still ongoing.