When investing in Cyprus you need to know all the information before you continue. We will provide a non-biased point of view with all the facts of investing in Cyprus. Go through this section of website to find out more information.
Where best to invest in Cyprus?
There is a healthy domestic residential letting market in most towns in Cyprus but some are better suited to holiday lets.
The towns of Paphos, Protaras and Ayia Napa (much improved in recent years from the young bar culture it was well known for) have very high tourist traffic. Paphos in particular has a twelve-month season due to the April to October holiday season and the very mild winters making it very popular as a winter retirement location on lets of a few weeks to a few months.
The eastern tourist towns of Protaras, Ayia Napa and Paralimni shut down from a tourist point of view from November to April and are only suitable for summer lets.
The eastern end of the island most certainly has the best beaches and, over time and with more flights, Paralimni and Protaras may well offer the best holiday let returns, but the majority of visitors prefer the Paphos end of the island at present.
In Paphos good areas for investment are Kato Paphos, Tala, Tomb of the Kings, Universal, Chloraka, Sea Caves and Peyia.
In Protaras areas around Protaras, Kapparis and Pernera are good for maximizing holiday lets. Areas around Paralimni and Dereynia are better for 12-month rentals.
For residential lettings, Nicosia, Limassol and Larnaca residential districts will generate good returns, typically two/three bedroom spacious apartments with large terraces close to business and commercial centres or detached villas in the suburbs.
Estimated rental returns
CYPRUS XYZ sources some developments with guaranteed rental returns for 12-24 month periods or even longer as well as providing help with sourcing reliable property management services.
Rentals in Cyprus will generally yield around 8% gross but professional marketing can see this rise to 12%. After management fees, changeover costs and general maintenance and repairs and other running costs, net yields are closer to 5-7%. This compares well to the mortgage rate and can be very profitable.
Fly To Let - holiday rentals and lettings on a short term basis :
The season in Cyprus can be defined as :
• High season - from May-September with occupancy levels of 50-65%.
• Low season - from October-April would recommend long-term letting primarily in the Paphos area where rental income would be half that in the high season.
Holiday let rental income is approximately as shown below, but there is a wide variation between owners letting out their properties, and you must take a professional view on the marketing of your property to maximize income if you wish to cover all your costs and make a profit :
• 2-bed apartment/townhouse/villa/semi-detached with communal swimming pool – approximately CY£60.00 per day in the high season
• 3 bed the same – approximately CY£60.00-70.00 per day in the high season
• 2 or 3 bed villa with private pool – Approx. CY£130.00-150.00 per day in the high season
Buy To Let - long term local lets :
• 2 bed apartment – CYP£350 - 400 per month
• 3 bed apartment – CYP£400 - 450 per month
• 2 bed villa with pool – CYP£600 per month
• 3 bed villa with pool – CYP£1000 per month
Detached villas with private swimming pools will have a higher rental that a detached villa with a shared pool.
IMPORTANT: The contents of this report have been compiled in good faith by Cyprusxyz to provide assistance to investors, but do not constitute investment advice or recommendations. Investors should not rely upon the information given in order to choose types or routes of investment but should make their own independent enquiries before making choices. Cyprusxyz has taken reasonable care in researching and presenting the information herein but makes no representations as to its accuracy and accepts no liability for actions taken or not taken as a result.
