Property investment in Cyprus

[ramiroelliot]

Hello I was wondering if it’s Cyprus offers good investment opportunities for property. Anyone has a personal experience in this? Or heard of anything. Investment meaning like airbnb or booking .com or rental income. I have heard that some older property investments in Cyprus are going down.

[Nigel Howarth]

Hi ramiroelliot and welcome to the forum

I have just published the latest price & rental index produced by RICS with KPMG in Cyprus.

This includes rental yields for various assets including houses, apartments and holiday homes.

Regards,

[Vendela]

We thought about that but in the end it was not worth it. The prices have sky rocketed in the last 2 years and tourism is in stagnation. So if you calculate everything, with maintainance etc., even if it is in very good location, it is just not worth the effort when other investments have much more yield.

[Pantheman]

We thought about that but in the end it was not worth it. The prices have sky rocketed in the last 2 years and tourism is in stagnation. So if you calculate everything, with maintainance etc., even if it is in very good location, it is just not worth the effort when other investments have much more yield.

"The prices have sky rocketed in the last 2 years and tourism is in stagnation".

Yes rents have sky rocketed and we have had one of the highest and still coming tourist season going. If you think tourism is in stagnation you must either be on another planet or not in Cyprus.

Friends and colleagues that have AirBnB properties still have bookings well into Nov and some in Dec.

[Nigel Howarth]

tourism is in stagnation.

Check out Cyprus hosts 2.2 million tourists from January to July 2024, More than half a million tourists visit Cyprus in August, and Over half a million tourists visit Cyprus in September.

Regards

[Vendela]

Well, the hotels and AirBnbs are not running all that smoothly.
There also have been some articles about this lately, but sorry, I have no time to look for them. Just the number of arrivals does not mean, those people actually are tourists.

Not only rents but also property prices have gone up. Every run down house in mediocre location is now at least 350000, which is the absolute bottom. I have seen properties going double in the last 2 years, from 350000 to 700000, from 400000 to 800000 sale price. At least that is what the owners think. So any investment now is just at the top of the bubble, when you see how many developments are going on. It is incredible and I think it will end catastrophic.

I am following the market very closely.

[Nigel Howarth]

Just the number of arrivals does not mean, those people actually are tourists.

The tourist arrivals are provided by the Cyprus Statistical Service (CySTAT). Figures are collected through personal interviews at the points of arrival, at the airports of Larnaca and Paphos. Some 2% of arrivals are interviewed.

I've just taken a look at their figures. Between January and September a total of 3,268,090 tourists visited Cyprus.

Regards,