Cyprus Rentals vs. Bank Returns: A Smarter Way to Grow Your Investment
Cyprus Rentals vs. Bank Returns – Investing in rental properties in Cyprus has proven to be far more lucrative than relying on traditional bank deposits. While average one-year household bank deposit rates stood at just 1.98% as of October, rental yields across Cyprus are delivering returns between 4% and 6%, making property investments an attractive alternative for savvy investors.
Top-Performing Locations
- Limassol: Known for its vibrant real estate market, Limassol leads the pack with rental yields of 4% to 6%. Seafront apartments and properties in sought-after areas are particularly profitable, drawing interest from both local and international renters.
- Nicosia: The capital offers stable returns of 4% to 5%, particularly in locations near business hubs, government offices, and universities. This reflects its steady demand driven by professionals and students.
- Larnaca: Emerging as an investment hotspot, Larnaca boasts yields of 5% to 6%. Properties near beaches or the airport are in high demand, making them ideal for investors seeking affordable yet high-return opportunities.
- Paphos: Popular among retirees and tourists, long-term rentals here yield 4% to 5%. Holiday rentals offer even higher returns, especially through platforms like Airbnb.
Property Market Trends
Cyprus property prices have stabilized for the first time since 2020, following steady growth from 2021. The average price per square meter has risen from €1,800 in 2022 to €2,500 in 2024. For example:
- A 150 sqm house priced at €270,000 in 2022 is now worth €375,000.
- A 100 sqm apartment priced at €110,000 in 2022 is now valued at €160,000.
Rental Prices
Rental demand remains strong, with monthly rates in Limassol starting at:
- €850 for a one-bedroom apartment
- €1,300 for a two-bedroom unit
- €1,700 for three-bedroom properties
For investors, the combination of high rental demand and property appreciation ensures Cyprus real estate offers far superior ROI compared to traditional banking options.
This Article was inspired by Nigel Howarth.
