BUY-TO-LET investors in Cyprus are feeling the sharp end of the property market slowdown. The global credit crunch, exchange rate issues and falling rental yields have left many in a difficult financial position.
Yet many developers and overseas property marketing companies continue to promote the island as an ideal investment opportunity claiming that Cyprus has “bucked the trend” of the credit crunch. Some still talk of “phenomenal” returns, while others are saying that you can get up to 30% per annum rental return.
Unfortunately, as many buy-to-let investors have learnt to their cost, the truth in somewhat different!
The figures published in August by the influential Global Property Guide, show that rental yields have fallen since the start of the year.
This fact is hardly surprising; the slowdown in tourism, the glut of holiday homes in many of the popular tourist destinations and the turbulence in the financial markets have all taken their toll. (It will also be interesting to see what impact the proposals for building high-rise apartment blocks will have on the property investment market).
According to the Global Property Guide, rental apartments in Cyprus yield an average of 3.81%. Their full assessment for the free areas of the island is presented in the table below.