More income is received by those who rent out real estate rather than the ones who receive interest from deposits in banks. In fact, at a time when depositors in Cyprus get crumbs since banks offer an interest rate ranging from 0.3% to 0.8%, those who get rents enjoy a return five to six times higher.
Latest data from Danos International Consultants and Real Estate Appraisers that Phileleftheros publishes shows the state of play of rental returns from houses, apartments, shops, offices and cottages in all of the island’s cities. Overall, rental returns range from 6.5% to 2%.
In Nicosia, rental yields for homes range from 3% to 4%, in apartments from 4% to 5%, in shops from 5.50% -6%, in offices from 5%-5.50% and in cottages from 2% to 2.5%.
In coastal Limassol, rental yields for homes range from 2.5% to 3%, in apartments from 4.5% to 5%, in shops from 5% to 5.5%, in offices from 5% to 5.5% and in holiday homes from 2.50% to 3.50%. Yields from house rentals in Larnaca range from 2.5% to 3.5%, in apartments from 4.50% to 5.50%, in stores from 5% to 5.50%, in offices from 5% to 6% and in cottages from 2% to 3%.
In Paphos, the rental yields enjoyed by property owners are from 3% to 4% in homes, 5% to 6% in apartments, 5.5% to 6.5% in stores, 5% to 6% in offices and 3.5% to 4% in holiday homes. In the Famagusta region house rental yields range from 3.5% to 4.5%, in apartments from 4.5% to 5.5%, in shops from 5% to 6%, in offices 5% to 6% and in cottages from 3.5% to 4%.
Investors have lately expressed significant demand for professional purposes real estate. These are either already leased, that is they provide the investor with a specific return, or are vacant and ready to be leased by the new owner.
Real estate experts believe the demand for property is due to declining interest rates, with investors looking for different types of investment ensuring a steady annual return which is well above that of deposits.