20.09.2023
According to research from a local real estate agency, properties in Limassol offer the highest returns on apartment rentals, generating returns of between 6.85% and 7.80%, while Larnaca has the highest growth prospects.
Haralambos Pitros , Managing Partner of Zyprus Property Group , MRICS, said that renting an average one-bedroom apartment in Limassol offers a yield of 7.8%. And renting out a two-bedroom apartment will bring an investment return of 6.85%.
The average rent for a one-bedroom apartment in Limassol is €1,300 per month, while for a two-bedroom apartment it averages €1,600.
Renting a three-bedroom detached house costing an average of €2,500 will yield an income of 5.45%.
Buying an average one-bedroom apartment in Limassol will cost 200,000 euros, and a two-bedroom apartment will cost 280,000 euros.
A buyer in the market for a three-bedroom mansion will shell out just over half a million euros (€550,000).
Property values in Limassol continue to rise as the annual increase in apartment yields stands at 10.4% when comparing the first quarter of this year with the same period in 2022. The increase in the cost of renting a three-bedroom house was 5.45%.
The data provided in the survey refers to apartments and houses offered for resale between 10 and 13 years of age, in average condition, on average area in each region and of average size. The average area of a one-room apartment is 50 sq.m. , a three-room apartment is 80 sq.m. The average house will occupy 180 sq.m of internal area on a plot of 500 sq.m.
Larnaca
Apartment yields in Larnaca in the first quarter of 2023 increased by 12.3% compared to the same period last year.
The average rent for a one-bedroom apartment in Larnaca is €700, and for a two-bedroom apartment €1,050. The rent for an average three-room apartment is 2,000 euros.
Buying an average one-bedroom apartment in a coastal city costs €130,000. A two-bedroom apartment will cost the buyer €180,000, and a mansion €420,000.
The yield on apartments in Larnaca is 6.46% and 7% for one and two bedroom apartments respectively. The yield on renting a house in the city is 5.71%. The annual increase in home profitability was 5.8%.
Pathos
In Paphos, renting an average one-room apartment will cost 700 euros, and a two-bedroom apartment will cost 1,000 euros. The house will generate a monthly income of 1,700 euros.
The yield on apartments in Paphos is 6.46% and 7.05% for a one-room and two-room apartment respectively. The yield from renting a detached house in the city is 5.36%. The annual increase in home profitability was 5.7%.
Buying a one-bedroom apartment in Paphos will cost you €130,000, while a two-bedroom apartment will cost you €170,000. The mansion will cost 380,000 euros.
Nicosia
Surprisingly, rents in the capital are lower than in the other three cities. Renting an average one-room apartment costs 550 euros, and a two-room apartment costs 700 euros. The rent for a three-bedroom house in Nicosia is €1,700.
Buying an average one-room apartment in the capital will cost €110,000, and an average two-room apartment will cost €160,000.
A separate three-room apartment will cost 400,000 euros.
The rental yield for a one-room apartment in Nicosia is 6%, and for a three-room apartment is 5.45%. The rental yield for a three-bedroom house is 5.1%.
The prospects for property yield growth in Nicosia are also lower than in other cities, as the annual growth rate for apartments is 4.4% and for houses 4.2%.
Famagusta
Finally, rents are at the lowest level in Famagusta , with a one-bedroom apartment costing tenants €500 per month and €650 for a two-bedroom apartment.
Renting a three-bedroom house costs €1,300 per month. To purchase a one-room apartment you will need about €90,000, and for a two-room apartment – €130,000. Buying a house costs about 330,000 euros.
The yield from renting a one-room apartment in Famagusta is 6.66%, and a three-room apartment is 6%. The yield on a three-bedroom detached house is 4.72%.
Real estate in Famagusta recorded the lowest yield growth prospects, with yield growth year-on-year at 2.25% and houses at 5%.
