Authored by the expert who managed and guided the team behind the Cyprus Property Pack
Yes, the analysis of Paphos' property market is included in our pack
Buying property in Paphos is a decision that requires solid data, not just opinions or gut feelings.
This article gives you the latest facts about housing prices in Paphos and whether January 2026 is a good time to buy.
We constantly update this blog post to reflect changes in the Paphos property market, so you always have fresh information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Paphos.
So, is now a good time?
Rather yes, January 2026 is a reasonable time to buy property in Paphos if you choose carefully and avoid overpaying for hyped new builds or poor locations.
The strongest signal is that Paphos property prices grew about 12% in the past year while demand from foreign buyers remains very strong, showing the market has real momentum.
Another key signal is that rental yields for apartments in Paphos still sit around 5 to 6%, which means the math can work for landlords at current prices.
Tourism keeps breaking records in Cyprus, supply is increasing gradually rather than flooding the market, and mortgage rates have stabilized around 3.5 to 4%, all of which support prices without creating bubble conditions.
The best strategy in Paphos right now is buying well-located apartments or townhouses in areas like Kato Paphos, Universal, or Geroskipou for long-term rentals, as these offer the best balance of yield and resale liquidity.
This is not financial or investment advice, we do not know your personal situation, and you should always do your own research before making any property purchase.
Is it smart to buy now in Paphos, or should I wait as of 2026?
Do real estate prices look too high in Paphos as of 2026?
As of early 2026, Paphos property prices are running hot compared to the rest of Cyprus, but they are not wildly overvalued when you look at the rental income they can generate and the strong international demand supporting them.
One clear signal that prices might be stretched in some segments is that overpriced new builds and investor flips are sitting on the market longer, while fairly priced homes in good locations still sell quickly.
Another useful indicator is that Paphos experienced about 12% price growth in 2024 and 2025, which is faster than most of Cyprus, meaning some of the "easy gains" may already be priced in and buyers need to be more selective now.
You can also read our latest update regarding the housing prices in Paphos.
Does a property price drop look likely in Paphos as of 2026?
As of early 2026, the likelihood of a meaningful property price drop in Paphos over the next 12 months is low, though a cooling or flat period is quite possible.
A plausible price change range for Paphos residential property over the next year is roughly minus 5% to plus 8%, with the downside mainly affecting overpriced new builds and fringe locations rather than prime coastal areas.
The single most important factor that could increase the odds of a price drop in Paphos is a sharp tightening of credit conditions, either through higher mortgage rates or stricter lending rules from the Central Bank of Cyprus.
However, this scenario looks unlikely in the near term since the European Central Bank has been easing rates and Cyprus mortgage rates have actually declined from around 3.9% to about 3.4% recently.
Finally, please note that we cover the price trends for next year in our pack about the property market in Paphos.
Could property prices jump again in Paphos as of 2026?
As of early 2026, the likelihood of a renewed price surge in Paphos is medium, meaning another double-digit jump is possible but not the base case.
A plausible upside range for Paphos property prices over the next 12 months is roughly plus 5% to plus 12%, with the higher end more likely for apartments and smaller rental-ready homes in prime areas.
The single biggest demand-side trigger that could drive prices to jump again in Paphos is Cyprus joining the Schengen Zone, which would significantly increase the island's appeal to European and international buyers seeking hassle-free access.
Please also note that we regularly publish and update real estate price forecasts for Paphos here.
Are we in a buyer or a seller market in Paphos as of 2026?
As of early 2026, Paphos is in a seller-leaning market where good properties sell with limited negotiation, though it is not an extreme frenzy where anything sells at any price.
There is no official "months of supply" figure for Paphos, but based on Central Bank commentary and transaction activity, the effective supply is tight enough that well-priced homes in desirable areas typically move within two to four months, which usually means sellers have the upper hand.
Price reductions do exist, particularly on overambitious new-build pricing and investor flips, which suggests that while sellers generally have leverage, buyers can still negotiate on properties that have been sitting or are priced above market.
We have made this infographic to give you a quick and clear snapshot of the property market in Cyprus. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Are homes overpriced, or fairly priced in Paphos as of 2026?
Are homes overpriced versus rents or versus incomes in Paphos as of 2026?
As of early 2026, Paphos homes are not wildly overpriced when you compare purchase costs to rents, though the math works better for apartments than for houses or villas.
The price-to-rent ratio for apartments in good Paphos locations translates to gross rental yields of around 5 to 6%, which is reasonable by European standards and suggests prices are not disconnected from rental reality.
The price-to-income multiple in Paphos looks stretched if you only consider local Cypriot wages, but the market is driven significantly by foreign buyers, retirees, and remote workers whose purchasing power is higher than local averages.
Finally please note that you will have all the indicators you need in our property pack covering the real estate market in Paphos.
Are home prices above the long-term average in Paphos as of 2026?
As of early 2026, Paphos property prices are well above their pre-2020 levels, with the district outperforming most of Cyprus over the past three years.
The recent 12-month price change in Paphos was around 12%, which is considerably faster than the pre-pandemic long-run pace and faster than the broader Cyprus average of roughly 4 to 5%.
In inflation-adjusted terms, Paphos prices are near or slightly above the prior cycle peak from before 2013, though the fundamentals today are stronger because demand is more diversified and credit conditions are healthier.
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What local changes could move prices in Paphos as of 2026?
Are big infrastructure projects coming to Paphos as of 2026?
As of early 2026, the single biggest planned infrastructure project in Paphos is the long-awaited Paphos Marina at Potima Bay near Kissonerga, which could meaningfully lift property values in the surrounding coastal corridor once it moves from planning to construction.
The expected timeline for the Paphos Marina is a tender award in early 2026, construction start in late 2026 or 2027, and first-phase completion targeted around 2029, though the project has faced decades of delays and legal challenges, so some caution is warranted.
For the latest updates on the local projects, you can read our property market analysis about Paphos here.
Are zoning or building rules changing in Paphos as of 2026?
The most important building-related change affecting Paphos in 2026 is not a single zoning headline but rather how quickly the planning system can process permits and deliver new supply, which affects whether the market stays tight or loosens.
As of early 2026, Cyprus has been going through local government transitions that can slow planning decisions, meaning new-build delivery timelines may stretch, which tends to support prices in areas with already-limited stock.
The areas most affected by permit delays and supply constraints in Paphos are the prime coastal zones like Kato Paphos and Coral Bay, where land is scarce and regulatory scrutiny is higher, keeping supply tight and prices firm.
Are foreign-buyer or mortgage rules changing in Paphos as of 2026?
As of early 2026, there is no major announced change to foreign-buyer rules in Cyprus, though short-term rental compliance and tax enforcement have been tightening, which could reduce easy rental income expectations for some investor buyers.
The most likely foreign-buyer-related change being discussed is stricter enforcement of short-term rental registration and taxation, which affects Paphos more than most districts because of its heavy tourism reliance.
On the mortgage side, the Central Bank of Cyprus maintains its macroprudential toolkit and could tighten loan-to-value or debt-service limits if housing credit growth accelerates too fast, though no shock tightening is expected in early 2026.
You can also read our latest update about mortgage and interest rates in Cyprus.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Cyprus versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Will it be easy to find tenants in Paphos as of 2026?
Is the renter pool growing faster than new supply in Paphos as of 2026?
As of early 2026, renter demand in Paphos appears to be growing roughly in line with supply in most of the district, though demand still outpaces supply in the best rental pockets like Kato Paphos, Universal, and Tombs of the Kings.
The clearest demand signal is Cyprus breaking tourism records and experiencing steady population growth, both of which support the services jobs and seasonal workers who need rental housing in Paphos.
On the supply side, building permits have been rising, which means more rental units are coming to market, but delivery is concentrated in certain developments and not evenly spread across all neighborhoods.
Are days-on-market for rentals falling in Paphos as of 2026?
As of early 2026, there is no official days-on-market statistic for Paphos rentals, but rental indices and yield stability suggest that well-priced properties in good areas are being absorbed quickly.
The difference in absorption speed between best areas and weaker areas in Paphos is significant: a well-priced two-bedroom in Kato Paphos or Universal can rent within two to four weeks, while a poorly located or overpriced unit in the outskirts might sit for months.
One common reason days-on-market falls in Paphos is the seasonal tourism cycle, which creates bursts of demand for both short-term and long-term rentals as businesses staff up for peak season.
Are vacancies dropping in the best areas of Paphos as of 2026?
As of early 2026, vacancy pressure appears lowest in Paphos neighborhoods like Kato Paphos, Universal, Tombs of the Kings, and parts of Chloraka, where rental demand from expats, remote workers, and tourism-linked tenants is most concentrated.
While there is no official vacancy rate by neighborhood, the combination of firm rents, strong tourism, and continued price appreciation suggests that these best areas have vacancy rates well below the district average.
A practical sign that the best areas are tightening first in Paphos is that landlords in prime locations are increasingly able to demand longer lease commitments and stricter tenant qualifications, which is not typical in a loose market.
By the way, we've written a blog article detailing what are the current rent levels in Paphos.
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Am I buying into a tightening market in Paphos as of 2026?
Is for-sale inventory shrinking in Paphos as of 2026?
As of early 2026, we cannot say with certainty whether for-sale inventory in Paphos is shrinking year-over-year because there is no official inventory statistic, but prime stock in good locations behaves as if supply is tight while the broader pipeline suggests more units are coming.
The closest proxy for months-of-supply in Paphos is the Central Bank's commentary that demand remains active and sales transactions have increased, which typically implies a market with three to five months of effective supply, below the six months often considered balanced.
One reason inventory might feel tight in Paphos is that well-located, fairly priced homes get absorbed quickly by both local and foreign buyers, leaving the visible listings skewed toward overpriced or less desirable properties.
Are homes selling faster in Paphos as of 2026?
As of early 2026, there is no official median days-on-market figure for Paphos, but the combination of strong price growth and increased transaction activity suggests that well-priced homes are selling faster than they did two or three years ago.
We estimate that the effective selling time for fairly priced residential property in desirable Paphos locations is roughly two to four months, compared to what was likely four to six months before the recent price acceleration.
Are new listings slowing down in Paphos as of 2026?
As of early 2026, we are not confident in estimating the year-over-year change in new for-sale listings in Paphos because there is no official new-listings feed, but building permit data suggests that new supply is gradually increasing rather than drying up.
The seasonal pattern for new listings in Paphos typically shows more activity in spring and autumn when both local and foreign buyers are most active, though the current level does not appear unusually low based on permit trends and market activity.
Is new construction failing to keep up in Paphos as of 2026?
As of early 2026, new construction in Paphos appears to be catching up gradually with demand at the district level, though the most desirable coastal submarkets like Kato Paphos and Coral Bay still face supply constraints because land is scarce and permitting is slower.
The recent trend in building permits for Paphos shows an increase, which suggests developers are responding to demand, though delivery timelines mean these units will not hit the market immediately.
The single biggest bottleneck limiting new construction in prime Paphos areas is land availability and coastal regulatory scrutiny, which keeps supply tight in exactly the locations where demand is strongest.
We made this infographic to show you how property prices in Cyprus compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
Will it be easy to sell later in Paphos as of 2026?
Is resale liquidity strong enough in Paphos as of 2026?
As of early 2026, resale liquidity in Paphos is reasonably strong for well-located properties priced realistically, thanks to the district's diversified buyer pool of locals, expats, retirees, and international investors.
We estimate that median days-on-market for resale homes in good Paphos locations is roughly two to four months when priced fairly, which compares favorably to a "healthy liquidity" benchmark of under six months.
The property characteristics that most improve resale liquidity in Paphos are walkability to amenities, proximity to the coast, and turnkey condition, with locations like Kato Paphos, Universal, and Tombs of the Kings consistently showing the fastest turnover.
Is selling time getting longer in Paphos as of 2026?
As of early 2026, selling time in Paphos may be stretching slightly compared to the hottest period of 2024, as higher prices and mortgage rates create some affordability friction for buyers.
We estimate the current median days-on-market in Paphos ranges from about two months for prime, well-priced properties to six months or more for overpriced or poorly located listings.
One clear reason selling time can lengthen in Paphos is affordability pressure: as prices have risen 20% or more over two years and mortgage rates sit around 3.5 to 4%, some buyers simply need more time to arrange financing or negotiate.
Is it realistic to exit with profit in Paphos as of 2026?
As of early 2026, the likelihood of selling a Paphos property with profit is medium to high if you hold for at least three to five years and buy well, but short-term flipping carries meaningful risk given recent strong price gains.
The minimum holding period in Paphos that most often makes exiting with profit realistic is roughly three to five years, which allows time for transaction costs to be absorbed and for modest appreciation to accumulate.
The estimated total round-trip cost drag in Paphos, including buying costs like stamp duty, VAT on new builds, legal fees, and selling costs like agent commissions and capital gains tax, is roughly 8 to 12% of the property value, or about 25,000 to 45,000 euros on a typical 300,000 euro purchase.
One clear factor that most increases profit odds in Paphos is buying below market or in a neighborhood with upside catalyst, such as the Chloraka and Kissonerga corridor if the Paphos Marina project actually moves forward.
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What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Paphos, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Central Bank of Cyprus RPPI | The country's central bank and the most trusted price index for Cyprus housing. | We used it to track Paphos price trends for houses and apartments. We also used its demand and supply indicators to assess crash risk. |
| CYSTAT House Price Index | The official national statistics agency using EU-aligned methodology. | We used it as an independent cross-check on price growth. We compared Paphos performance to the national average. |
| RICS Cyprus Property Index | A professional standards body partnered with KPMG, documenting methodology clearly. | We used it to anchor rental yields for apartments versus houses. We also triangulated price direction with their practitioner survey. |
| Central Bank of Cyprus Interest Rates | Official central bank release for household borrowing and deposit rates. | We used it to estimate the mortgage rate environment for buyers. We explained how rates affect affordability and price growth. |
| IMF Cyprus 2025 Article IV Report | A top-tier international institution that routinely assesses housing and credit risks. | We used it to ground the macro outlook for Cyprus. We checked whether the economy looks like a credit bubble. |
| Eurostat Euro Indicators | The EU's official statistics office with comparable methodology across countries. | We used it to benchmark Cyprus against the broader euro-area cycle. We framed interest-rate sensitivity and cross-border buyer sentiment. |
| CYSTAT Tourist Arrivals | An official statistics release, not a media summary, and tourism drives Paphos demand. | We used it to justify why Paphos rental demand stays firm. We explained how coastal submarkets differ from inland ones. |
| CYSTAT Building Permits Database | The official statistics database with district-level breakdown. | We used it to track new supply direction in Paphos. We explained why some segments feel tight even when permits rise. |
| Department of Lands and Surveys | The government body closest to actual property transactions and title administration. | We used it as the source of record for sales volumes. We referenced it when judging buyer versus seller market conditions. |
| FRED HICP Rent Index | Republishes official European HICP series in a transparent, downloadable format. | We used it to track rent direction in Cyprus. We checked whether price-to-rent ratios are stretching. |
| CYSTAT Demographic Statistics | The official population estimate and a core driver of long-run housing demand. | We used it to judge whether Cyprus is adding residents. We kept our conclusions grounded in fundamentals. |
| Cyprus Property News | A reputable outlet that tracks official project announcements and tender processes. | We used it to monitor the Paphos Marina project timeline. We explained how infrastructure can re-rate nearby submarkets. |
| Central Bank Macroprudential Policy | Where the central bank publishes its financial stability toolkit and policy stance. | We used it to assess whether authorities might cool housing credit. We framed rule-change risk for mortgages in 2026. |
| Cyprus Mail | A major English-language news outlet covering regulatory developments in Cyprus. | We used it to track short-term rental compliance changes. We explained how tighter rules could affect investor expectations. |
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Cyprus. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
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