Introduction
As an investor or buyer you’ll want realistic numbers: purchase cost, running cost, rental yield, capital appreciation. In this blog we lay out what the numbers look like in Cyprus today and what they might give you.
1. Purchase cost & price levels
Average price per m² quoted around €2,700 in many markets in Cyprus.
Market growth: the pace of house price growth was ~7.80% y/y in Q1 2024 and ~6.51% in Q3 2024.
Entry-level new builds in Larnaca from ~€150,000 for apartments in certain coastal zones.
2. Rental yields
In hotspots like Larnaca’s coastal zone yields in the 5-6% range have been cited.
More conservatively, some guides suggest ~4% yields in markets such as Larnaca and Paphos.
Important: net yield after costs (management, maintenance, vacancy, taxes) will be lower than “gross yield”.
3. Capital growth potential
While growth remains positive, there is evidence of moderation and stabilisation.
Therefore, a realistic investor view may plan for moderate growth (e.g., 3-6% p.a) rather than double-digit spikes.
Location, quality and buy-in price relative to value will make the difference.
4. Costs & running expenses
Developer/communal charges for apartments/villas in managed complexes can add up.
If you rent out property: management, cleaning (for holiday-lets), insurance, maintenance.
Exit costs: capital gains tax, legal fees, sales commission. Some sources say CGT around 20%.
5. Investment scenario (example)
Imagine you buy a 2-bed apartment in a good coastal location in Larnaca for €300,000.
If yield is ~5% gross → €15,000 per annum. After costs perhaps €10,000 net.
Suppose price grows at 5% p.a → in 5 years value ≈ €300,000 × (1.05)^5 ≈ ~€383,000.
Combined rental income + capital appreciation gives the total return — but you must account for costs, tax, and risk (vacancies, downturns).
Conclusion
Cyprus offers a credible combination of entry cost, lifestyle appeal and moderate returns — not high-risk/high-reward territory, but more balanced than some higher-volatility markets. If you buy well and plan for 5-10 years, the odds are reasonably favourable.
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