Cyprus Rental Yields 2025: A Story of Five Coastlines and One Capital

Imagine unrolling a map of Cyprus on your kitchen table. From the cruise ship cranes of Limassol to the club lights of Ayia Napa, every pin on that map tells a slightly different earnings story for landlords. The latest Housebook comparison of gross rental yields and risk reminds us that location still rules—but the kind of tenants each location attracts matters just as much.

Limassol — glamour with guard‑rails

Short‑let yield 7–9 % | Long‑let 4.5–5.5 % | Risk: low–medium

Limassol’s towers brim with shipping executives, fintech coders and high‑end tourists. Deep demand cushions vacancy swings, yet two clouds hover: luxury supply still in the pipeline and tougher bank‑lending rules. Those guard‑rails keep the city stable, but they also keep entry prices high.

Nicosia — the steady civil servant

Short‑let yield 6–7 % (Airbnb limited) | Long‑let 4–5 % | Risk: low

Far from the sea, the capital trades sunshine premiums for predictability. Civil servants, embassy staff and students keep apartments full year‑round. There is no tourist market to backfill a dip in diplomatic tenants—but such dips have been rare, making Nicosia the island’s “sleep‑well” bet.

Paphos — postcards and peak seasons

Short‑let yield 8–10 % in summer; 4–5 % off‑season | Long‑let 4–5 % | Risk: medium

Kato Paphos and Coral Bay light up when leisure tourists and digital nomads arrive. High summer yields look dazzling, yet winter can stretch vacancy periods. Resale values still dance to UK‑buyer sentiment and airline seat capacity. Investors who budget for November‑to‑March quiet spells can unlock meaningful upside.

Larnaca — an airport town growing into itself

Short‑let yield 7–8 % | Long‑let 4–5 % | Risk: medium‑low

Port workers, university students and mid‑range tourists share pavements here. New marina and cruise‑terminal projects promise more traffic, but they also pump fresh supply into the pipeline. Pick units that complete before or soon after those works finish to ride the first demand wave.

Famagusta Coast (Agia Napa/Protaras) — feast‑or‑famine beachfront

Short‑let yield 9–11 % high season; near‑zero in winter | Long‑let 3.5–4 % | Risk: high

Think of this strip as a summer festival: spectacular gate receipts, silent stages in January. Cash flow soars from April to October, then rests. Success hinges on an off‑season plan—either dual‑listing for long lets or holding deep liquidity for vacant months.

Cross‑currents every landlord should watch

Three broad playbooks

Sleep‑easy income - Nicosia student flats or Limassol city apartments below €600 k yield 4–5 % with minimal vacancy.

Balanced growth - Larnaca centre and west Paphos (Universal/Kato Paphos) aim for mid‑7 % seasonal yields plus resale tail‑winds once marina upgrades finish.

High‑octane returns - Agia Napa beachfront or hill‑view villas in Paphos can touch 9–10 %, but only if you budget for winter slumps or secure long‑let back‑ups.

Bottom line

Cyprus in 2025 is not a universal market. Each coastline tells its own story of risk and reward. Match the scenario according to your appetites and always consult with experts before attaching the next flag on the map.