Buy-Rent Indicator for Cyprus0
Is it worth buying a property or rent more meaningful?
One in four Cypriots plans according to the survey a move within the next five years. With every move turns “rent or buy” question.
- Nicosia, house prices increased 0.56% to an average price of €372,714
- Paphos house prices rose by 5.7% to an average price of €353,991
- In Farmagusta-Paralimni, house prices remained unchanged at €320,916
- In Larnaca, house prices increased 1.97% to an average price of €277,222
- In Limassol, house prices declined by 1.23% to an average price of €304,105
- In Nicosia, the average monthly house rent rose by 0.5% y-o-y to €599.
- In Paphos, the average monthly house rent rose by 13.9% y-o-y to €541.
- In Famagusta, monthly house rent remained unchanged at an average of €445.
- In Limassol, the average monthly house rent fell slightly by 0.2% y-o-y to €629.
- In Larnaca, rents for houses dropped 8.6% during 2015, to an average of €479.
Buy-Rent Indicator (3-bedroom house-villa in the same location and with the similar facilities):
- Nicosia – 25
- Paphos – 28
- Farmagusta – 35
- Larnaca – 21
- Limassol – 23
The buy-to-rent indicator calculates how many years you can rent a house, to reach the average purchase price of the property in this region – without credit, maintenance or operating costs at the property in addition incurred. The lower the buying-rent ratio, the more worthwhile the purchase of your own home and the higher the potential profits for investors.
According to world practice if indicator up to 25 option “Buy” is recommended, at a value of over 25 is economically sensible to rent. However this approach does not take into account many factors, like price changing, deposit rates, and many others, among them the most important that it does not make decision for scenario “what will be after…”