Limassol leads in yields, Larnaca on the rise: Cyprus real estate insights
22 september 2023

Limassol leads in yields, Larnaca on the rise: Cyprus real estate insights

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When we look more closely at the real estate market in Cyprus, we discover that Larnaca has growth potential while Limassol has solid rental yields. According to a recent study by local real estate agency Zyprus Property Group, these two cities are showing promise in different ways. These observations paint a clear picture of Cyprus's current real estate market.

Limassol

When it comes to rental yields, Limassol takes the crown. Renting out an average one-bedroom apartment in this vibrant city can yield an impressive 7.8% return on investment. Even a two-bedroom flat isn't far behind, offering a solid 6.85% yield. The average rent for a one-bedroom apartment in Limassol stands at €1,300 per month, while two-bedroom flats command an average of €1,600. If you're considering buying, an average one-bedroom apartment will set you back around €200,000, with a two-bedroom option at €280,000. For those with grander aspirations, a three-bedroom detached house in Limassol comes with a price tag of just over €550,000.

The good news for investors is that Limassol's property values continue to climb, with a year-on-year yield increase of 10.4% for apartments compared to the same period last year. Even renting a three-bedroom detached house can yield a respectable 5.45%. Keep in mind that these figures are based on properties that are 10-13 years old, in average condition, and located in typical neighborhoods.

Larnaca: a growing prospect

Larnaca is catching up quickly with a promising 12.3% year-on-year increase in rental yields for apartments in Q1 2023 compared to the same period last year. While the yields in Larnaca might not match Limassol's, they are still attractive. A one-bedroom apartment in Larnaca can bring in around €700 in monthly rent, while two-bedroom flats average €1,050. For those interested in buying, an average one-bedroom apartment is priced at €130,000, while a two-bedroom apartment will cost around €180,000. A detached house in Larnaca demands an investment of €420,000.

Yields for apartments in Larnaca currently stand at 6.46% for one-bedroom units and 7% for two-bedroom apartments. The yield for renting a detached house in the city is 5.71%, with a year-on-year increase of 5.8%.

Other cities in Cyprus

Moving west to Paphos, rental prices are also attractive. A one-bedroom apartment rents for €700, while a two-bedroom unit goes for €1,000. If you're considering buying in Paphos, an average one-bedroom apartment will cost you €130,000, while a two-bedroom apartment is priced at €170,000. Detached houses in the area come with a price tag of around €380,000. Yields for apartments in Paphos stand at 6.46% for one-bedroom and 7.05% for two-bedroom units.

Surprisingly, Nicosia, the capital, offers lower rental rates compared to the coastal cities. A one-bedroom flat rents for €550, while a two-bedroom apartment goes for €700. The rent for a detached three-bedroom house in Nicosia is €1,700. Buying an average one-bedroom apartment in the capital would cost €110,000, while a two-bedroom flat is priced at €160,000. A detached three-bedroom apartment would cost €400,000. Yields from renting a one-bedroom apartment in Nicosia stand at 6%, and it's 5.45% for a two-bedroom one. The yield for renting out a three-bedroom house is 5.1%.

Finally, Famagusta offers the lowest rental prices, with a one-bedroom apartment costing tenants €500 a month, and €650 for a two-bedroom. Renting a three-bedroom house costs €1,300 a month. If you're thinking of buying, an average one-bedroom apartment is priced at €90,000, and a two-bedroom at €130,000. Houses in Famagusta cost around €330,000. The yield from renting a one-bedroom apartment in Famagusta is 6.66%, 6% for a two-bedroom apartment, and 4.72% for a three-bedroom detached house. Property in Famagusta shows lower prospects for yield growth compared to other cities, with a year-on-year increase of 2.25% for apartments and 5% for houses.

The Cyprus real estate market is developing, with Larnaca indicating significant future growth and Limassol exhibiting good rental yields. These observations provide a thorough examination of the current real estate market conditions in these cities.