Paphos, one of the most picturesque and culturally rich towns in Cyprus, has become a centre of attraction for property investors in recent years. There has been a significant increase in interest in purchasing expensive and exclusive properties in the region.
The City of Aphrodite is not only in demand amongst buyers, but is actively developing and modernising, attracting more and more residential and commercial property investment. New projects such as luxury villas, high-rise apartments and the upgrading of the city's infrastructure, such as the creation of new promenades, parks, educational and medical facilities, make Paphos one of the most promising regions for investors looking for value and quality.
A review of recent deals and trends
In February 2024, Paphos stood out in the Cypriot property market with the sale of its most expensive property, a plot of land in the prestigious Agios Theodoros area for €4.8 million. The deal symbolised the continued interest in high-end property in the region. In the same month, Paphos also led the way in terms of number of transactions: of the ten largest transactions on the island, five took place here, totalling €12.57 million.
This confirms the trend of increasing investment in high quality and high value properties, and also indicates an increased demand for unique and luxurious properties, including villas and plots with outstanding features.
Comparison with other cities in Cyprus
Paphos stands out from other Cypriot cities not only for the number and value of transactions, but also for the quality of property on offer. In Limassol, for example, four expensive properties were sold for €9.89 million in the same period, which is also impressive but falls short of Paphos' volumes. Nicosia recorded one significant transaction for a mixed property worth €2.75 million.
A general analysis of the market shows that Paphos and Limassol are the two main centres of attraction for investment in expensive property in Cyprus. However, Paphos has the advantage in terms of larger and more significant transactions, underlining its status as a premium destination for investors interested in unique and luxurious properties.
Infrastructure development
Strategic infrastructure development in Paphos is having a multi-faceted positive impact on the region, accelerating economic activity and enhancing the city's international status as an outstanding tourist and investment destination.
New infrastructure projects in Paphos, including the development of the promenades and the modernisation of the airport, are playing a key role in enhancing the region's tourism appeal and economic growth. The promenades along the coastline provide ideal conditions for walking and relaxing, making Paphos an attractive destination for holidaymakers and long-term investors. These projects will not only improve the quality of life for local residents, but will also attract new investment in the hotel and restaurant industry, further developing the town as a tourist centre.
Paphos airport, in turn, is a key element in supporting the region's tourism industry. It makes the city more accessible to international visitors, contributing to the growth in tourist numbers. The modernisation and expansion of the airport to improve services and increase capacity has a direct impact on the economic development of Paphos, increasing tourism revenues and creating new jobs. These improvements make Paphos more attractive not only to tourists but also to business investors who see the potential in local infrastructure and property development.
Future projects and their potential
There has been little news of high-rise projects in Cyprus recently, especially when it comes to traditional Paphos. This is why it is so important to talk about the new Soho Resort towers in Paphos. The project, which will be completed in January 2023, is an outstanding example of modern architecture and comfort. The project will be launched in December 2022 and is located in the Kato Paphos area just 100 metres from the sea. The development will comprise 1 to 5 bedroom apartments ranging from 60 to 330m2 and will have an energy efficiency rating of A.
Soho Resort stands out not only for its size, but also for its exclusive services: a five-star hotel, large swimming pools, restaurants, spa, bars and boutiques. All this in a landscaped setting with underground parking, 24-hour security and concierge service. There is also the tallest tower in Paphos at 15 storeys, complemented by a 16-storey five-star international branded hotel and 20 private villas with their own swimming pools. Prices range from €850,000 to €4,390,000, making this one of the most prestigious developments in the region.
All available properties in the Soho Resort Paphos
Another impressive high-rise will be completed in 2027 in the Agios Theodoros area, we will announce the launch date at a later date.
The King Residences is a new luxury residential development to be built in the prestigious Tombs of the Kings area of Paphos, just 700 metres from the sea. The complex will be built on a plot of 9.1 thousand square metres and will comprise five buildings with 60 apartments of various layouts: from one to three bedrooms, ranging in size from 51m2 to 108m2. The apartments will be built to modern construction and design standards, with panoramic windows, spacious balconies and high-quality finishes.
Each apartment will have a covered parking space and a storage room. The complex will offer first-class amenities including a spa, gym, large covered terraces, two swimming pools for adults and children, a lobby bar, a park area with green lawns and a playground. The buildings have a category A energy efficiency rating, ensuring low maintenance costs. The King Residences is ideal for those looking for high-quality accommodation and a solid investment opportunity in Cyprus.
Properties available at The King Residences
The commercial properties in the town are also worth considering. There is a severe shortage of Grade A office space throughout Cyprus. A prime example of success is the Beon active office project in Paphos, also known as the Be.On Business Hub, which offers modern space for rent in the heart of the city centre. Developed by INEX and renovated in February 2024, this innovative business centre comprises three floors of office space and is located 2,000 metres from the sea.
Beon's offices offer a variety of workspace options, from private offices to flexible co-working spaces suitable for companies and sole traders. In addition to traditional amenities such as meeting rooms, coffee points and lunch areas, Beon makes extensive use of cutting-edge technology and innovative solutions to maximise comfort and efficiency. Rental costs range from €400 to €50,000, making this centre affordable for small start-ups as well as large corporations.
All rental options available at Beon active office project
Paphos villas are a speciality. They are luxurious, mainly because of their breathtaking sunset views. Here are some recent examples. Grato Homes is a new residential development in the quiet Peyia area of Paphos, offering 13 luxury villas ranging in size from 214m2 to 361m2, just 1.5km from the sea. Each villa has been designed with an emphasis on modern architecture and functionality, offering high levels of thermal and acoustic insulation and incorporating granite worktops, imported ceramic tiles and large windows to create a light and airy space.
The Grato Homes development offers residents luxurious amenities such as private pools, barbecue areas and individual parking spaces, emphasising a secluded and relaxing lifestyle. Construction is underway with a choice of finishes allowing future owners to personalise their homes to suit their tastes. The development is scheduled for completion by the end of 2025, making it an attractive option for investment and comfortable living in Paphos.
Properties available at the Grato Homes development
One of the most ambitious and promising projects in Paphos is the construction of 30 luxury villas by Barzelia Ltd in the Peyia area. This project will not only reinforce Paphos' status as a premium lifestyle and leisure destination, but will also emphasise its environmental appeal.
Each villa will be 2-3 storeys high, with modern design and architecture, 11 of which will have private swimming pools and 5 of which will have underground parking. The project's location, just steps from the famous Coral Bay beach, guarantees stunning views and easy access to the sea, making these villas ideal for both permanent residences and seasonal holidays. The eco-friendly nature of the area and the use of green technologies in construction will allow the new residents to enjoy comfort without compromising the environment. This makes the project attractive not only to buyers, but also to investors looking to invest in sustainable and environmentally responsible properties.
Ready Universal Residences is a recently completed residential development in the prestigious Universal area of Paphos, just a seven-minute walk from the sea. The development consists of five 5-storey blocks offering 1, 2 and 3-bedroom apartments, including luxury penthouses with roof gardens and sea views. For the comfort of residents, the complex has a swimming pool, children's playground, pool bar, sauna and jacuzzi.
Each apartment in Universal Residences features a well-designed layout, modern and stylish interiors, large square footage, panoramic windows and the presence of both covered and open verandas. Surrounded by tranquillity and greenery, the development's high-quality finishes and excellent acoustic and thermal insulation make it ideal for permanent, holiday or rental use.
Properties available at the Universal Residence
Development of a new seafront in Kissonerga
The new promenade in the village of Kissonerga is another example of how infrastructure projects can transform a region. The 2km promenade includes playgrounds, outdoor exercise areas, comfortable benches and modern lighting. As well as improving the appearance and functionality of the waterfront, the redevelopment will greatly enhance the quality of life for local residents and the attractiveness of the area for tourists.
Of particular note is the Lock Your Love element on the viewing platform, which adds to the romantic atmosphere and has the potential to become a popular tourist attraction. Incorporating such unique attractions into infrastructure projects enhances their appeal and encourages increased tourism, which in turn has a positive impact on the local economy and property market.
Today, a new one-bedroom apartment in the area is available for around €200,000 plus VAT. The apartment has a living area of 50 m2 and a total area of 62 m2, and is located on the ground floor of a two-storey building. It has views of the sea, which is only 200 metres away from the complex.
The complex offers extensive facilities including a large communal swimming pool, landscaped gardens, outdoor snack bar and children's play area. The apartment benefits from air conditioning, lift access and parking. It is an ideal choice for both short term rentals and permanent residence due to its convenient location close to the city centre, grocery stores, schools and kindergartens.
These projects represent significant steps in the development of Paphos as a tourist and residential centre, improving the quality of life and offering investors new investment opportunities. Each of these projects in its way contributes to improving the overall image of the town, making it more attractive to residents and visitors alike.
Recommendations for Investors
Selecting properties for investment
When selecting properties for investment in Paphos property, it is important to consider several key aspects based on current trends and future market potential. Firstly, it is important to consider the location of the property. Properties close to major infrastructure projects, such as new promenades or the airport, tend to have higher values and better liquidity. Secondly, properties in areas with developed social infrastructure - international schools, hospitals and shopping centres, historic centres - should be considered, as these factors significantly increase the attractiveness of the property to long-term tenants and buyers.
Prospects for property value growth
According to market analysis, Paphos continues to be one of the most promising markets for property investment in Cyprus. The growth in property values in this area is supported by the steady influx of tourists, young people and infrastructure improvements. However, investors should be aware of potential risks. These include political instability in the region (the TRNC issue), economic fluctuations in the Eurozone which can affect demand and property values. It is also important to note the risks associated with possible natural disasters, which may result in additional insurance and reconstruction costs.
Risk mitigation strategies
To minimise these risks, it is advisable to diversify your investment portfolio, including investing not only in residential but also in commercial property, and to consider investment opportunities in different areas of Paphos. In addition, it is advisable for investors to constantly monitor the market situation and the legal cleanliness of the acquired properties to avoid possible legal or title problems.
A prudent approach to investing in Paphos property will allow you to take advantage of all the opportunities offered by this market and achieve significant capital growth while maintaining a reasonable level of risk.
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