The Paphos residential property market will reach new heights in 2024, according to research from Ask Wire , 4,853 transactions worth €1.19 billion were recorded, up 30% from pre-pandemic levels. These figures highlight the growing interest in real estate in the area.
Factors Affecting Pricing
Three key parameters determine the value of residential real estate:
- Property size. One-, two- and three-bedroom apartments have different price categories, which allows for adaptation to buyers’ needs. One-bedroom apartments sold on average for 210 thousand euros, which corresponds to the budget for obtaining a residence permit (300-400 thousand euros). Three-bedroom apartments approached the price of 400 thousand euros.
- The higher the property is located, the higher its price. The cost of apartments increases up to the fifth floor, and on the sixth to eighth floor, where properties are considered exclusive, it increases even more. Placing penthouses on the top floors allows developers to offer them as ” penthouses in the sky,” which justifies the higher price.
- Newness of the property. New builds offer added value due to modern amenities and high construction standards. New properties account for 44% of sales volume, but account for 64% of their total value. The average price of new builds is 43% higher due to additional amenities such as swimming pools, fitness rooms and recreation areas.
Price segments of the market
- Central Market . The average price of new buildings is 3,300–4,700 euros per square metre, with properties ranging from 300,000 to 750,000 euros. Two-thirds of these properties were sold within six months.
- Affordable property segment . Properties below 3,300 euros per square metre attract local buyers with a limited budget.
- Premium segment . The cost of objects above 4,700 euros per square meter is justified only if they have unique characteristics, such as a sea view or an exclusive location.
Strategies of successful developers
- Staged construction . First, compact one- and two-bedroom apartments are brought to the market to attract more investors.
- Optional extras : Options such as smart home systems or sports areas are offered, keeping the initial price low.
- Flexible pricing . The cost of properties is adjusted after every 15-20 apartments sold, which helps maintain demand and take inflation into account.
Paphos remains a promising area for residential property investment due to balanced supply, high demand and effective developer strategies.
