Latest Headlines

Property prices and gross rental yields

Cyprus property investors should expect to pay in the region of €2,004/sq.m for a 120sq.m apartment in Paphos and expect to receive a gross rental yield of 2.83% according to the latest figures published by the Global Property Guide.

THE influential Global Property Guide has recently published its list of the most expensive real estate markets in 2009.

Perhaps not surprisingly, Monte Carlo is in the number 1 position, more than twice as expensive, at €34,142, as the runner up. Battling for the number 2 position are prime central Moscow and London. Prime central Moscow’s €14,964 per square metre price tag slightly outpaces core Prime London’s €14,895 per square metre, though it is fairer to say the two cities are neck-and-neck.

The Global Property Guide’s figures are based on a 120m2 apartment.

Closer to home in Cyprus:

  • Limassol is at number 55 with a price tag of €2,343/m2 and a gross rental yield of 3.45%.
  • Paphos is at number 71 with a price tag of €2,004/m2 and a gross rental yield of 2.83%.
  • Nicosia is at number 81 with a price tag of €1,619/m2 and a gross rental yield of 3.76%.
  • Larnaca is marginally less expensive at number 85 with a price tag of €1,560/m2 and a gross rental yield of 3.64%.

What does rental yield mean? Why is it important?

The gross annual rental income expressed as a percentage of today’s property purchase price. This is what a landlord can expect as return to his investment.

The rental yield is one useful yardstick of whether property is over-valued or under-valued:

20% – Very undervalued

15% – Very undervalued

12% – Undervalued

10% – Undervalued

8% – Borderline undervalued

7% – Fairly priced

6% – Fairly priced

5% – Borderline overvalued

4% – Overvalued

3% – Overvalued

2.5% – Very overvalued

2% – Very overvalued

The table below has been assembled from figures provided by Global Property Guide.

 CountryCity/RegionAve Price (Euro/sq.m)Annual Yield (%age)
1MonacoMonte Carlo34,142n/a
2RussiaMoscow14,9644.61%
3UKLondon14,8954.12%
4JapanTokyo12,9154.86%
5Hong KongHong Kong11,5713.73%
6USANew York10,6914.37%
7FranceParis8,6994.26%
8SingaporeSingapore6,9613.97%
9ItalyRome6,5783.62%
10IndiaMumbai6,5754.02%
11IrelandDublin6,508n/a
12FinlandHelsinki6,0313.69%
13BermudaBermuda5,6415.05%
14GreeceAthens5,6392.71%
15UAEDubai5,1325.50%
16SpainBarcelona4,6813.75%
17MontenegroMontenegrin Littoral4,438n/a
18SwitzerlandGeneva4,4334.09%
19LuxembourgLuxembourg4,4244.28%
20British Virgin IslandsBritish Virgin Islands4,193n/a
21BarbadosSt. James4,1384.37%
22SpainMadrid4,0703.67%
23RussiaSt. Petersburg3,9668.15%
24AndorraAndorra3,8602.19%
25GermanyMunich3,7713.97%
26RomaniaBucharest3,7205.54%
27SlovakiaBratislava3,6514.28%
28AustraliaSydney3,5845.96%
29Turks & CaicosProvidenciales3,561n/a
30Netherlands AntillesSint Maarten3,508n/a
31NetherlandsAmsterdam3,3376.63%
32ItalyMilan3,3184.72%
33IsraelTel Aviv3,2885.13%
34Czech RepublicPrague3,2725.02%
35Saint Kitts & NevisNevis3,203n/a
36GermanyFrankfurt3,1624.60%
37US Virgin IslandsSaint Thomas3,103n/a
38PolandWarsaw3,0864.60%
39Puerto RicoSan Juan3,0795.32%
40Antigua & BarbudaAntigua3,068n/a
41BahamasNassau2,9268.37%
42CanadaToronto2,8756.48%
43TaiwanTaipei2,8472.38%
44DenmarkCopenhagen2,7384.61%
45SloveniaLjubljana2,7285.49%
46LatviaRiga2,6674.40%
47EstoniaTallinn2,6494.36%
48MaltaMalta2,6242.85%
49MartiniqueMartinique2,599n/a
50PolandKrakow2,5534.10%
51SwitzerlandZurich2,4855.00%
52Cayman IslandsGrand Cayman2,405n/a
53Saint LuciaSaint Lucia2,353n/a
54BelgiumBrussels2,3444.90%
55CyprusLimassol2,3433.45%
56MexicoBaja California Sur2,316n/a
57CroatiaZagreb2,3075.07%
58CanadaMontreal2,3046.77%
59IndiaNew Delhi2,2764.05%
60Saint Kitts & NevisSaint Kitts2,273n/a
61Trinidad & TobagoTrinidad2,2188.14%
62GermanyBerlin2,1744.80%
63GreeceCrete2,1393.57%
64PortugalAlgarve2,099n/a
65NetherlandsThe Hague2,0978.97%
66ChinaShanghai2,0944.36%
67LithuaniaVilnius2,0863.70%
68PortugalLisbon2,075n/a
69BulgariaSofia2,0654.62%
70HungaryBudapest2,0586.84%
71CyprusPaphos2,0042.83%
72US Virgin IslandsSaint Croix1,930n/a
73CambodiaPhnom Penh1,7964.88%
74Curacao and BonaireCuracao and Bonaire1,765n/a
75GuadeloupeGuadeloupe1,7557.31%
76BrazilRio de Janeiro1,7526.48%
77ChinaBeijing1,6955.14%
78South AfricaCape Town1,6906.32%
79New ZealandAuckland1,6847.46%
80ArgentinaBuenos Aires1,6458.85%
81CyprusNicosia1,6193.76%
82ThailandBangkok1,6067.97%
83LebanonBeirut1,6005.13%
84BelizeBelize1,593n/a
85CyprusLarnaca1,5603.64%
86MoroccoMarrakech1,4666.56%
87PhilippinesManila1,37310.99%
88Dom. Rep.Puerto Plata1,343n/a
89BrazilSao Paolo1,3356.56%
90UruguayMontevideo1,2587.56%
91VietnamHanoi1,2557.13%
92PanamaPanama City1,2499.98%
93JamaicaKingston1,1878.80%
94Costa RicaSan Jose1,1507.06%
95ChileViña Del Mar1,1383.74%
96ChinaGuangzhou1,0955.21%
97ArubaAruba1,035n/a
98ColombiaBogota1,0069.19%
99MalaysiaKuala Lumpur9679.22%
100MoldovaChisinau94414.17%
101MacedoniaSkopje93510.11%
102TurkeyIstanbul9266.47%
103ChileSantiago8768.87%
104PeruLima82810.09%
105JordanAmman8259.73%
106IndonesiaJakarta79111.27%
107NicaraguaManagua7759.12%
108ChinaChengdu7174.28%
109EcuadorQuito5888.77%
110ChileConcepción4809.04%
111IndiaBangalore4714.91%
112EgyptCairo41212.00%

Readers' comments

Comments on this article are no longer being accepted.

  • Text size

Back to top