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

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.