Cyprus Property: Housing returns performance

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By Antonis Loizou F.R.I.C.S. – Antonis Loizou & Associates Ltd – Real Estate Valuers & Estate Agents

 

The Cyprus branch of the Royal Institution of Chartered Surveyors (RICS), provides every quarter its own statistics on real estate returns and prices. The most recent one, which indicates returns on residential apartments of 120 sq.mts. rates, are:

 

YIELD (p.a.)

  
 

LARNACA

4.13%

  

LIMASSOL

5.29%

  

NICOSIA

4.01%

  

 

All Cyprus

Yields

2014

3.80%

2015

3.90%

2016

4.0%

2017

5.00%   (estimated)

 

Returns (or yields), as we locally interpret, is the income (gross) received p.a. compared to the property’s market value. 

The returns do not reflect non-payment of rent, property taxes, voids, common expenses etc, and this is rather wrong.  So, if one is to compare the local returns to those internationally adopted, for the Cyprus local returns one should reduce them by around 10-15% – i.e. the net income from a property based as a percentage on its value.

Based on the Global Property Guide, Cyprus does not appear to be in the lower scale for having a good return and as such we report:

A.A

Country/City

Gross Rents

Long term rating

 

 

Yield/year

Investment

 

 

 

 

1

Austria, Vienna

2.18%

Very Poor

2

Belgium, Brussels

4.87%

Poor

3

Bulgaria, Sophia

5.87%

Moderate

4

Cyprus, Limassol

5.29%

Moderate

5

Czech Republic, Prague

3.74%

Very Poor

6

Denmark, Copenhagen

4.84%

Poor

7

Estonia, Tallinn

4.28%

Poor

View all

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