Paphos continues to be one of the most dynamic areas in the Cyprus property market. The ability to adapt to demand and competently form supply allows investors and developers to make the most of current market conditions.
Foreign capital currently finances more than half of new apartment purchases, changing the meaning of the term “premium” for local developers. Where are smart investors investing today?
Key Market Trends
- Growing popularity of apartments . Of the 3,171 residential property transactions, 1,767 were for apartments, representing 56% of the total. New builds dominated this segment: 44% of the apartments sold were new builds, accounting for 64% of the total transaction value (€210 million). Many bookings for the new high-rise buildings in Kato Paphos and Chloraka were made with a 10% deposit , guaranteeing a refund “on paper” before completion.
- Property prices : The average price is €4,198 per square metre, with half of the transactions occurring in the range of around €3,800 per square metre. Property prices vary by floor, from €3,583 per square metre on the ground floor to €10,476 on the eighth.
- One bedroom apartments : around €213,000.
- Two bedroom apartments : €351,000.
- Three bedroom apartments : just under €400,000.
- Hot spots and promising areas:
- Kato Paphos : Popular due to demand for short-term rentals and residency programs.
- Universal and Chloraka : active construction of new tourist facilities stimulates the market.
- North West areas : Peyia and Sea Caves are showing growth in demand for villas.
Polis- Latsi has stabilised after two years of growth. Villages further inland, such as Tala and Tsada , are still valuable but are being developed more slowly as investors prefer coastal areas.
Peculiarities of consumer demand
Foreign investors finance more than half of new-build deals. These buyers prefer energy-efficient homes with amenities such as communal lounges and concierge services.
Local buyers continue to actively purchase private homes, especially in rural areas such as Tala and Tsada , where prices remain relatively affordable.
Why Correct Positioning Is Important
In 2024, 281 apartments were sold in Paphos for a total of €101 million. The property market in the range of €300,000-750,000 and €2,500-5,000 per square meter covers two thirds of transactions, making pricing a key factor in success.
Analytics programs such as Developers View from Ask Wire helps developers choose optimal pricing strategies and identify promising areas long before construction begins.
