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Limassol property offers best yields, Larnaca catching up

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Limassol property offers the highest yield for renting out an apartment, generating returns between 6.85% and 7.80%, while Larnaca has the highest growth prospect, according to a local real estate agency study.

Charalambos Pitros, Managing Partner at Zyprus Property Group, MRICS, told the Financial Mirror that renting an average one-bedroom apartment in Limassol offers a 7.8% yield.

And renting out a two-bedroom flat would fetch a 6.85% yield on investment.

Average rent for a one-bedroom apartment in Limassol is €1,300 per month, while two-bedroom flats go for an average of €1,600.

Renting a three-bedroom detached house, averaging €2,500, would yield 5.45%.

Buying an average one-bedroom apartment in Limassol would cost €200,000, while a two-bedroom apartment costs €280,000.

A buyer in the market for a three-bedroom detached house would have dish out just over half a million euros (€550,000).

Limassol property values continue to rise, as the year-on-year yield increase for apartments is 10.4% when comparing the first quarter’s performance this year to the same period in 2022.

The yoy increase on renting a three-bedroom detached house is 5.45%.

The data quoted by the survey is for apartments and houses; the values represent properties that are up for resale at an age of 10-13 years, in an average condition, in an average area in each region, and of an average size.

The average size for a one-bedroom flat is 50 sqm, and for a two-bedroom apartment, it is 80 sqm.

An average house would cover 180 sqm of internal area on a plot of 500 sqm.

Larnaca

Larnaca has the biggest prospect for growth, as the yoy yield has increased by 12.3% for apartments in Q1 2023 compared to the same period last year.

Averaged rent for a one-bedroom apartment in Larnaca is €700, while two-bedroom flats average €1,050. The rent for an average detached three-bedroom stands at €2,000.

Buying an average one-bedroom apartment in the coastal city costs €130,000.

A two-bedroom apartment would cost the buyer €180,000, while a detached house would need €420,000.

Yields for apartments in Larnaca stand at 6.46% and 7% for one-bedroom and two-bedroom apartments, respectively.

The yield for renting a detached house in the city is 5.71%. The yoy increase of the yield from a house is 5.8%.

Paphos

Moving to the island’s westernmost city of Paphos, renting an average one-bedroom costs €700, and a two-bedroom apartment €1,000. A detached house would bring in a monthly income of €1,700.

Yield for apartments in Paphos stands at 6.46% and 7.05% for a one-bedroom and two-bedroom, respectively.

The yield on renting a detached house in the city is 5.36%. The yoy increase of the yield from a house is 5.7%.

Buying a one-bedroom in Paphos will put you back €130,000, while you would need €170,000 for a two-bedroom apartment. A detached house would cost €380,000.

Nicosia

Surprisingly, rents in the capital are lower than in the three other cities. Renting an average one-bedroom flat costs €550, and a two-bedroom apartment €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 it is €160,000 for an average two-bedroom flat.

A detached three-bedroom apartment would cost €400,000.

Yields from renting a one-bedroom apartment in Nicosia stand at 6% and 5.45% for a two-bedroom one. The yield for renting out a three-bedroom house is 5.1%.

Growth prospects for yields in Nicosia property are also lower than in other cities, as the yoy increase for apartments stands at 4.4% and 4.2 for houses.

Famagusta

Finally, rents are at the lowest ebb in Famagusta, 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. Some €90,000 is needed to buy a one-bedroom apartment, and €130,000 for a two-bedroom.

Buying a house costs some €330,000.

The yield from renting a one-bedroom apartment in Famagusta is 6.66% and 6% for a two-bedroom apartment. The yield for a three-bedroom detached house is 4.72%.

Property in Famagusta recorded the lowest prospects for yield growth, as the yoy increase for apartments is 2.25% and 5% for houses.