An analysis reveals that Limassol is top of props offering the highest rental yields of 7.8% for two-bedroom apartments and the island’s highest market values of the properties analysed.
Speaking to Cyprus Property News, Dr Charalambos Pitros PhD MRICS, Managing Partner at Zyprus Property Group, said the Group’s analysis was based on data published by the Cyprus Central Bank in its Residential Property Price Indices.
The figures, presented in the table below, represent resale properties between 10 and 13 years old in average condition, in an average area, and of an average size, i.e.:
- One-bedroom apartment 50sqm internal area.
- Two-bedroom apartment 80sqm internal area.
- Three-bedroom detached house 180sqm internal area on a plot size of 500sqm.
The Zyprus analysis reveals that Limassol is top of the props offering a rental yield of 7.8% for a one-bedroom apartment and a year-on-year increase in market value of 10.4% for both one-bedroom and two-bedroom apartments. An average three-bedroom house in Limassol would set you back €550,000.
The property market in Limassol has been boosted by an influx of Russian and Ukrainian firms fleeing the war wartime conditions, while it seems Israeli investors have also helped to drive up prices and rents.
Market values for apartments in Larnaca have risen have risen 12.3% year-on-year and the rental yield for an average 2-bedroom apartment (at 7%) is higher than a similar property in Limassol.
Famagusta is the cheapest area to buy property. But the rental yield for a one-bedroom apartment is only surpassed by (you guessed it) Limassol.
Those wishing to buy an apartment to rent either short or long term, need to consider its running cost. As apartments invariably form part of a ‘jointly-owned building‘, their owners need to contribute towards the costs of common services, insuring, maintaining, repairing and managing the jointly-owned building, which includes everything within the boundary of the complex. (Of course this excludes the costs of owners insuring the contents of their unit, its services and its maintenance and repair.)
