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Property prices in Paphos are experiencing significant growth as we reach mid-2025, with annual increases ranging from 11.8% to 14.4% depending on property type.
The Paphos real estate market continues to attract both domestic and international buyers, driven by limited supply, strong tourism demand, and major infrastructure developments. As of June 2025, foreign buyers dominate the market, accounting for 83% of all property sales in the district, making Paphos the most popular destination for international property investment in Cyprus.
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Property prices in Paphos are rising rapidly, with houses increasing by 11.8% and apartments by 14.4% year-on-year as of 2024.
The average price per square meter ranges from €2,500 to €3,500, with premium coastal properties exceeding €4,000 per square meter.
| Property Type | Annual Price Growth | Average Price/m² |
|---|---|---|
| Houses | 11.8% | €2,500-€3,500 |
| Apartments | 14.4% | €2,500-€3,500 |
| Coastal Properties | 2-3% (forecast) | €3,800+ |
| Inland Properties | 3-5% (forecast) | €2,000-€2,500 |
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
What's the current average price per square meter in Paphos as of June 2025?
Property prices in Paphos range between €2,500 and €3,500 per square meter as we reach mid-2025.
The variation in prices depends on several factors including location, property type, and proximity to the coast. Premium areas like Coral Bay and Kato Paphos command higher prices, often exceeding €3,800 per square meter for prime coastal properties. Meanwhile, inland areas such as Geroskipou and Peyia offer more affordable options starting from €2,000 per square meter.
Detached houses specifically average around €2,500 per square meter, with new-build properties and those with sea views commanding premium prices. For context, the average sale price for new apartments across Cyprus was €281,000 in 2024, while new houses averaged €461,000, with Paphos consistently ranking among the highest-priced regions in the country.
The Paphos property market continues to show strong fundamentals, with prices supported by limited supply in prime coastal areas and sustained demand from both domestic and international buyers. Apartments in central locations with amenities typically trade between €200,000 and €300,000 for two-bedroom units.
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How much have Paphos property prices increased recently?
Paphos has experienced the steepest property price increases in Cyprus, with houses rising 11.8% and apartments surging 14.4% year-on-year.
According to the Central Bank of Cyprus' third-quarter report for 2024, Paphos and Famagusta led all districts in price growth. This represents a significant acceleration from previous years, with the House Price Index for Paphos reaching 101.6 (1Q2010=100) in September 2024, up from 99.6 just three months earlier. The apartment sector has been particularly dynamic, with the 14.4% annual increase in Paphos outpacing most other regions except Famagusta.
The rapid price growth reflects a combination of factors unique to the Paphos market. Supply remains relatively constrained compared to districts like Limassol and Nicosia, where new developments are expanding to meet demand. In contrast, Paphos faces limitations on new coastal development due to zoning restrictions and environmental protections, creating a supply-demand imbalance that continues to push prices upward.
Transaction volumes in Paphos surpassed €400 million in 2024, driven by a mix of EU and non-EU investors targeting both newly built coastal villas and resale apartments. The district recorded 2,710 residential transactions in 2024, though this represented an 8.5% decline in volume compared to the previous year, suggesting that higher prices may be starting to impact buyer activity.
Which areas in Paphos are seeing the fastest price growth?
Emerging inland districts like Geroskipou and Peyia are experiencing the fastest property price growth in Paphos.
These areas are benefiting from their relative affordability compared to prime coastal locations, attracting buyers priced out of premium zones. New development activity in these districts is creating modern residential communities with good infrastructure and amenities. Peyia, in particular, has seen significant interest due to its elevated position offering sea views at more accessible price points than beachfront properties.
Coastal areas such as Kato Paphos and Coral Bay continue to see steady growth of 2-3% annually, though at a slower pace than inland areas. These premium markets remain supported by tight supply and strong demand from international buyers seeking holiday homes or investment properties. Properties in Coral Bay average over €3,800 per square meter, with standalone villas typically listed between €500,000 and €1.2 million.
| Area | Growth Rate | Average Price/m² | Key Drivers | Typical Property Price |
|---|---|---|---|---|
| Peyia | 3-5% forecast | €2,000-€2,500 | Affordability, new developments | €250,000-€400,000 |
| Geroskipou | 3-5% forecast | €2,200-€2,800 | Infrastructure, proximity to city | €200,000-€350,000 |
| Kato Paphos | 2-3% forecast | €3,000-€4,000 | Tourism, limited supply | €300,000-€600,000 |
| Coral Bay | 2-3% forecast | €3,800+ | Premium location, sea views | €500,000-€1,200,000 |
| Chloraka | 3-4% forecast | €2,500-€3,200 | Central location, amenities | €250,000-€450,000 |
What's the 2026 forecast for Paphos property prices?
Property prices in Paphos are forecast to rise by 3-5% annually through 2026, with emerging districts potentially seeing higher growth.
Market analysts project continued price appreciation driven by sustained international demand, limited coastal supply, and major infrastructure improvements. The forecast varies by location, with inland areas like Peyia and Geroskipou expected to see annual growth of 4-5%, while established coastal zones may experience more moderate increases of 2-3% per year. This would put average prices in the €2,700-€3,800 per square meter range by 2026.
Several factors support this positive outlook for 2026. Cyprus's expected entry into the Schengen Zone is accelerating foreign demand, particularly in Paphos and Limassol. The major expansion of Paphos International Airport, increasing capacity to 5 million passengers annually by 2026, will enhance accessibility and boost tourism-driven property demand. Additionally, proposed marina developments and improved road connectivity are set to increase the region's appeal.
However, the market faces potential headwinds that could moderate growth. Rising construction costs, global economic uncertainties, and the possibility of oversupply in certain segments could temper price increases. The European Central Bank's monetary policy and interest rate decisions will also play a crucial role in determining mortgage affordability and buyer demand through 2026.
Based on current trends, if you find a 2-bedroom apartment in Kato Paphos priced at €300,000 today, it could be valued between €318,000 and €330,000 by the end of 2026, assuming the mid-range forecast of 3-5% annual growth materializes.
Which property types are experiencing the biggest price surge?
Apartments are leading the price surge in Paphos with a 14.4% annual increase, outpacing houses which rose by 11.8%.
The apartment sector's exceptional performance reflects changing buyer preferences and demographics. Young professionals and retirees are increasingly seeking modern living spaces with amenities, driving demand for well-located apartments. Two-bedroom units in complexes with pools and parking are achieving gross rental yields of 6-7.5%, making them particularly attractive to investors.
Seaside and new-build properties command the highest premiums and are seeing sustained price growth. These properties are particularly attractive to foreign investors who dominate the Paphos market. New developments with tourist licensing or permanent residency eligibility are in especially high demand, often selling out during the construction phase.
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- Tech-smart, energy-efficient villas: Properties with smart home technology and energy-saving systems are commanding premium prices, catering to expatriates and tech-savvy buyers
- Coastal properties with sea views: Limited availability and high demand continue to drive prices for properties with Mediterranean views
- Properties with outdoor spaces: Post-pandemic preferences for homes with gardens, terraces, and private pools are sustaining higher valuations
- Eco-friendly developments: Sustainable construction and green certifications are becoming key selling points, attracting environmentally conscious buyers
- Mixed-use developments: Projects combining residential, retail, and leisure facilities are gaining popularity among investors
How does the current mortgage situation affect Paphos property prices?
Mortgage rates in Cyprus currently range from 3.5% to 5.5% for fixed rates and 3% to 4.5% for variable rates as of June 2025.
The European Central Bank has begun reducing rates, which is supporting buyer activity and affordability in the Paphos market. Recent data shows housing loan rates decreased to 4.56% in February 2025 from 4.90% in previous months. This improvement in financing conditions is helping to sustain demand despite elevated property prices.
Loan-to-value ratios vary by buyer category: up to 80% for Cypriot citizens, 70% for EU/EEA residents, and 60% for third-country nationals. These financing terms, combined with repayment periods extending up to 40 years, are helping maintain affordability for residents and EU buyers. However, non-EU buyers face higher down payment requirements and stricter lending criteria.
The recent ECB rate cuts are expected to further boost affordability and demand in the coming months. Banks like Hellenic Bank offer mortgages up to €1 million with competitive rates starting at 3.5% for certain loan categories. The Bank of Cyprus provides housing loans with rates from 3.75% for amounts up to €150,000, making property purchases more accessible to a broader range of buyers.
These improving financing conditions are supporting continued price growth in Paphos by enabling more buyers to enter the market, though the relatively high rates compared to the eurozone average (2.43% vs 4.17% in Cyprus) continue to act as a moderating factor on demand.
What percentage of Paphos property buyers are foreign investors in 2025?
Foreign buyers account for an overwhelming 83% of property sales in Paphos, making it the most internationally dominated market in Cyprus.
This remarkable figure has remained consistent since 2015, when 75.86% of sales went to non-EU nationals and 6.87% to EU citizens. The trend strengthened in 2016 with foreign buyers accounting for 80.94% of transactions. As of March 2025, Paphos recorded 204 contracts of sale to foreign buyers, representing a 38% year-on-year increase compared to March 2024.
The dominance of international buyers in Paphos far exceeds other Cyprus districts. For comparison, foreign ownership represents 6.18% in Larnaca, 5.85% in Famagusta, 3.90% in Limassol, and just 1.5% in Nicosia. This concentration in coastal regions reflects international investors' preference for lifestyle properties with tourism potential.
Several factors drive this international interest in Paphos. The district offers competitive pricing compared to Limassol, world-class golf courses, a revitalized city center, rich cultural heritage including UNESCO World Heritage sites, scenic landscapes, and proximity to an international airport. The Cyprus Permanent Residency Program, requiring property investment of €300,000 or more, has also significantly boosted foreign demand.
The profile of foreign buyers is diverse, with strong interest from EU citizens seeking holiday homes and non-EU nationals pursuing residency through investment. Recent data shows increased activity from Israeli, Lebanese, Russian, and Ukrainian investors, reflecting both lifestyle choices and geopolitical factors influencing investment decisions.
Are new infrastructure projects pushing up Paphos property values?
Major infrastructure projects including airport expansion and marina development are significantly boosting Paphos property values.
The expansion of Paphos International Airport, scheduled for completion in 2025-2026, will increase capacity to 5 million passengers annually. This dramatic improvement in accessibility is already being factored into property prices, particularly for developments near the airport and in areas benefiting from improved transport links. Properties along the planned airport corridor are seeing accelerated price growth.
The proposed marina development represents another transformative project for Paphos. Set to begin construction by 2025, this facility will enhance the city's appeal to yacht owners and luxury property buyers. Areas surrounding the future marina site are already experiencing speculative price increases as investors position themselves to benefit from the enhanced amenities.
Additional infrastructure improvements driving property values include the Paphos-Polis highway project expected to be awarded by October 2025, coastal road expansions, and mixed-use developments reshaping the urban landscape. The American University of Beirut's Mediterraneo campus and Cyprus University of Technology's hotel and tourism college have also strengthened Paphos's position as an education hub, supporting year-round rental demand.
These infrastructure investments are creating a multiplier effect on property values. Improved connectivity, enhanced amenities, and increased tourist capacity are making Paphos more attractive to both residents and investors, supporting the forecast of 3-5% annual price growth through 2026 and beyond.
How has demand for Paphos properties changed in the first half of 2025?
Demand for Paphos properties surged in early 2025, with domestic buyers showing a 32% increase in activity compared to the previous year.
The first quarter of 2025 saw 829 sale contracts filed in Paphos, contributing to a 15% increase in overall Cyprus property transactions. This growth reflects both strong domestic confidence and sustained international interest. Foreign buyer activity increased by 38% year-on-year in March 2025, with Paphos recording 204 contracts to international purchasers.
Transaction values have grown even faster than volumes, indicating buyers are purchasing higher-value properties. In the first quarter of 2025, Paphos recorded €199 million in property transfers. The district's market dynamics show a clear trend: while transaction volumes decreased by 8.5% in 2024, values continued to rise, suggesting a shift toward premium properties.
| Buyer Type | Q1 2025 Activity | Year-on-Year Change | Market Share | Average Transaction Value |
|---|---|---|---|---|
| Domestic Buyers | 145 transactions | +32% | 17% | €180,000 |
| EU Buyers | 184 transactions | +17% | 22% | €250,000 |
| Non-EU Buyers | 500 transactions | +15% | 61% | €380,000 |
| Total Market | 829 contracts | +15% | 100% | €240,000 |
The shift in buyer demographics is noteworthy. Millennials and Gen Z are projected to represent 70% of the real estate market by 2025, influencing demand toward modern, sustainable, and affordable housing options. This demographic change is driving interest in apartments and smaller homes with smart technology features.
What economic factors are influencing Paphos property prices in 2025?
Cyprus's expected Schengen Zone entry and falling interest rates are the primary economic drivers pushing Paphos property prices higher in 2025.
The anticipated Schengen accession is accelerating foreign demand as investors seek to secure properties before potential price increases. This prospect of visa-free travel throughout the Schengen Area is particularly attractive to non-EU buyers, who already dominate the Paphos market with 61% of transactions. The psychological impact of this pending change is creating urgency among international buyers.
Interest rate reductions by the European Central Bank are improving affordability and stimulating demand. With mortgage rates declining from 4.90% to 4.48% for business loans and housing rates stabilizing around 4.56%, more buyers can afford to enter the market. This monetary easing is expected to continue through 2025, further supporting property demand.
Global economic uncertainties present both opportunities and risks for Paphos. Geopolitical tensions in Eastern Europe and the Middle East continue to drive safe-haven investment into Cyprus property. However, inflation concerns and potential recession risks in major economies could impact buyer sentiment. Construction material costs, while down 2.1% year-on-year, remain elevated compared to pre-pandemic levels.
The stable political environment in Cyprus compared to regional alternatives continues to attract international investment. EU membership provides legal certainty and property rights protection that appeals to foreign buyers. Tourism growth, with 2025 set for a record year, underpins rental income potential and supports property valuations in Paphos's coastal areas.
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Is rental demand supporting Paphos property price growth?
Strong rental demand with yields of 6-7.5% for apartments is significantly supporting property price growth in Paphos.
The Paphos rental market remains one of Cyprus's most dynamic, shaped by the city's dual role as a tourist destination and residential hub for expatriates. Short-term holiday rentals in coastal areas command premium rates, while long-term furnished leases provide stable income streams. Average rents in Paphos stand at €412 for one-bedroom, €625 for two-bedroom, and €712 for three-bedroom units.
Tourist-driven rental demand is particularly strong, with properties in Kato Paphos and Coral Bay achieving the highest short-let rates in the district. The expansion of Paphos International Airport and growing tourist arrivals are expected to further boost rental demand through 2025-2026. Properties with tourist licensing can generate significantly higher returns than standard residential lettings.
The growing expatriate community, including retirees and remote workers, provides year-round rental demand. Educational institutions like Neapolis University and the new American University of Beirut campus create consistent demand for student and faculty accommodation. This diversified rental market reduces seasonal volatility and supports stable property valuations.
Gross rental yields in Paphos at 4.25% compare favorably with other Cyprus cities, though below Limassol's 5.29%. However, lower property acquisition costs in Paphos often result in better net returns for investors. The combination of capital appreciation potential and rental income continues to attract buy-to-let investors, supporting upward pressure on property prices.
What do experts predict for Paphos property prices through 2030?
Experts remain bullish on Paphos property prices, forecasting sustained growth of 3-5% annually through 2030, driven by infrastructure development and international demand.
Long-term projections suggest Paphos will maintain its upward trajectory, though growth rates will moderate as new supply comes online. Key drivers include continued international residency programs, lifestyle appeal for European retirees, infrastructure upgrades including the completed airport expansion, and Schengen Zone benefits enhancing accessibility. If these trends persist, property prices could increase by 30-50% by 2030.
Medium-term forecasts for the next 5 years anticipate annual growth of 3-5%, with possible surges in premium coastal segments. The completion of major infrastructure projects by 2026-2027 is expected to create a step-change in property values, particularly in areas benefiting from improved connectivity. Mixed-use developments and sustainable construction will likely command premium prices.
However, experts also highlight potential risks that could impact long-term growth. Market saturation in the luxury segment remains a concern, with possible oversupply of high-end properties. Global economic shocks or financial crises could dampen international demand. Climate change impacts on coastal properties may affect long-term valuations. Changes to residency programs or tax policies could alter investment dynamics.
- Infrastructure completion by 2027 will unlock new growth areas
- Demographic shifts toward younger, tech-savvy buyers will reshape demand
- Sustainable development will become mandatory, affecting construction costs
- Rental market evolution with more professional management will support yields
- Technology integration in property management will add value
Market analysts advise investors to focus on properties with strong fundamentals: good locations, quality construction, rental potential, and residency program eligibility. Areas currently considered emerging, like Peyia and Geroskipou, may become prime locations by 2030 as the city expands.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Yes, property prices in Paphos are going up significantly. With annual increases of 11.8% for houses and 14.4% for apartments, Paphos is experiencing the fastest price growth in Cyprus. The market is driven by overwhelming foreign demand (83% of sales), limited coastal supply, and major infrastructure improvements.
Looking ahead to 2026 and beyond, experts forecast continued growth of 3-5% annually, supported by Cyprus's Schengen Zone entry, airport expansion, and sustained international interest. While some moderation is expected as new supply comes online, the fundamental drivers of Paphos's property market remain strong, making it an attractive destination for both lifestyle buyers and investors seeking Mediterranean property exposure.
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Sources
- The Luxury Playbook - Paphos Real Estate Market Overview
- Cyprus Mail - Paphos House Price Report
- Central Bank of Cyprus - Interest Rate Statistics
- Cyprus Property News - Foreign Buyer Statistics
- Fox Smart Estate Agency - Market Analysis 2025
- Global Property Guide - Cyprus Market Analysis
- Cyprus Mail - Q1 2025 Market Report
- Tranio - Cyprus Property Prices 2025
- Cyprus Mortgage Guide 2025
- Investropa - Paphos Price Forecasts
-Paphos Property Market Trends
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.