Rental yields compared: Paphos vs Limassol
Gross yields on new-build two-bedroom flats: Paphos 4.0%, Limassol 5.4%. Based on VAT-inclusive prices and medians from 504 and 620 units — plus what those percentages leave out.
We ran the gross yield on two-bedroom new-build apartments using current market data. The base is what a buyer actually pays — VAT at 19% included.
We used median prices rather than averages (medians work better for this kind of analysis), taken from shortlister.cy, the Cyprus new-build portal — a tool built for market professionals, where the data is stripped of noise. The medians are drawn from 504 two-bedroom units in Paphos and 620 in Limassol.
The numbers for both cities
- Paphos — €395,000 at the developer's list price, €470,000 with VAT. Rent €1,560 per month. Gross yield 4.0%.
- Limassol — €470,000 at list price, €559,000 with VAT. Rent €2,520 per month. Gross yield 5.4%.
To be straight about the rent assumption: the market median for two-bedroom units as of August 2026 is €1,300 in Paphos and €2,100 in Limassol. We lifted it by 20% in the calculation — a brand-new, fully finished and well-equipped apartment lets at the top of the range. Understating the figure here does as much damage as overstating it.
What these percentages do not include
- management, common-area service charges, insurance;
- rental income tax;
- void periods between tenants;
- capital appreciation of the apartment itself.
That last point deserves its own conversation. We leave capital growth out of this calculation: you cannot honestly forecast it across an entire market, and we are not going to drop in a flattering number just to make the case look better. That said, it can easily close the gap between the two cities on a specific investment's IRR — or put Paphos ahead. That is a hypothesis, and it has to be tested project by project.
The main thing to understand about 4.0% and 5.4%
These are market averages. Real estate is local down to the street and the individual block, and a great many factors move the yield in any given case. In our own practice in Paphos we routinely find properties delivering 6–7% net — they simply have to be selected and underwritten properly, before the contract is signed. But an average figure is still useful: it helps a new buyer get their bearings and decide where to point the search first.
And about us
We work in both Paphos and Limassol, though the lion's share of our deals, projects and consulting sits in Paphos. The Limassol figure in this calculation comes out above our home market, and we are publishing it as it is. That is rather the point of the name — Honest Square Metres.
We say it often: property markets are intensely local, and nobody can be a genuine expert across the whole of one. To understand a location in depth you have to live in it. In large cities with active property markets — Dubai, London, Miami — serious firms have brokers covering a single district, not even the whole city.
Figures reflect market prices and rents as of August 2026. This material is not investment advice; past performance does not guarantee future results.