Paphos is no longer just a place for tourists to visit on holiday.
In 2024, it became one of the most active property investment centres in Cyprus.
Consulting company Ask Wire says that 4,853 deals to buy and sell homes and businesses worth a total of €1.19 billion were registered here during the year. This is the highest number ever and a percentage point higher than the number of deals before the Cyprus crisis. Interestingly, half of the purchases were made with money from other countries. New players are setting new standards: today's 'premium housing' is about more than just space and location. It's also about energy efficiency, infrastructure and the level of service. Investors from Germany, Israel and the Middle East are increasingly buying flats instead of houses.
Altogether, 3,171 residential property transactions were made, and 1,767 of these were flats (56% of the total). The areas of Kato Paphos and Chloraka are particularly popular in the new-build segment. This is because there is a high demand for modern complexes with swimming pools, gyms and recreational areas. This demand is fuelled by residence permit programmes. Some projects here are already sold out even though they are still in the planning stage. People often have to pay a deposit to secure their place.
Experts say that the average cost of 1 m2 in Paphos today is €4,198 (the median cost is €3,809). The price depends on the floor: it is between 3,583 euros and more than 10,000 euros per square metre. On average, this means that the cost of:
- One-bedroom apartments in Paphos cost about 213,000 euros;
- Two-bedroom apartments cost 351,000 euros;
- Three-bedroom apartments cost just under 400,000 euros.
If we look more closely at the different areas of the city, Kato Paphos is the best for short-term rentals. Universal and Chloraka are seeing more activity because of infrastructure projects. Peyia and Sea Caves are growing because land prices are going up, and villas are being built there. Polis and Latsi have stabilised after a sharp rise in prices. Tala and Tsada are also very promising, but are developing more slowly.
A report by Ask Wire says that more than % of new flats in Paphos in 2024 were bought by foreigners or people who have a second home there. These customers chose properties with high-quality finishes, smart home systems, swimming pools and fitness facilities, and more. So, if the product is not flexible, it will mean less profit. On the other hand, understanding demand helps make projects successful even before they go on sale.
Paphos is now a place where there is a lot of competition and a serious plan to make money. It's a great place for investors, property developers and analysts.