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
Paphos has become one of the fastest-growing property markets in Cyprus, with prices increasing by about 8% over the past year alone.
This blog post covers the current housing prices in Paphos, along with short-term and long-term forecasts, and we update it regularly to keep the data fresh.
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.
Insights
- Paphos apartments deliver rental yields around 5.4% to 5.7% for holiday units, which is higher than most coastal European destinations with similar climate and lifestyle appeal.
- Foreign buyers now account for roughly 60% to 83% of property transactions in Paphos, making it one of the most internationally driven markets in Cyprus.
- The Paphos airport expansion to 5 million passengers annually is expected to complete by 2026, directly supporting property demand in nearby neighborhoods like Chloraka and Geroskipou.
- Apartments in Paphos outperform houses in liquidity, with faster resale times and more consistent buyer demand from both investors and lifestyle seekers.
- Coastal areas like Kato Paphos and Tombs of the Kings have limited new supply, which keeps prices elevated and supports annual growth rates of 7% to 10%.
- The €300,000 permanent residency threshold continues to attract non-EU buyers, creating a price floor in the mid-market segment across Paphos.
- Upper Tala and Peyia command villa premiums of €3,000 to €5,000 per square meter due to sea views and limited buildable land.
- Paphos property prices have grown between 50% and 80% over the past five years, outpacing the national average thanks to tourism and second-home demand.
- Short-term holiday rentals in tourist zones can push gross yields to 7% to 8.5%, though this requires active management and seasonal adjustments.
What are the current property price trends in Paphos as of 2026?
What is the average house price in Paphos as of 2026?
As of early 2026, the estimated average property price in Paphos is approximately €420,000 (around $455,000 or £350,000), which reflects a blend of apartments, townhouses, houses, and villas across the district.
This translates to an average price per square meter of about €2,900 in Paphos, though this varies significantly by location, with coastal areas often exceeding €3,500 per square meter and inland neighborhoods sitting closer to €2,200.
For context, about 80% of property purchases in Paphos fall within the range of €200,000 to €600,000, covering everything from modest two-bedroom apartments to family-sized villas with pools.
How much have property prices increased in Paphos over the past 12 months?
Property prices in Paphos have increased by an estimated 8% over the past 12 months, making it one of the strongest performing districts in Cyprus during this period.
This growth varies by property type, with apartments rising by about 7% to 9% and houses and villas appreciating by roughly 7% to 10%, depending on location and quality.
The single most significant factor driving this price movement in Paphos has been sustained demand from foreign buyers, who now represent over 60% of transactions, combined with limited supply in desirable coastal areas.
Which neighborhoods have the fastest rising property prices in Paphos as of 2026?
As of early 2026, the three neighborhoods with the fastest rising property prices in Paphos are Kato Paphos (near the harbor), Tombs of the Kings (coastal strip), and Universal (popular rental zone), all benefiting from strong international demand.
These areas have experienced annual price growth of approximately 9% to 12%, with Kato Paphos and Tombs of the Kings at the higher end due to their walkability and proximity to the sea.
The main demand driver is a combination of short-term rental appeal, limited coastal land supply, and improved infrastructure, including the ongoing Paphos airport expansion which is boosting investor confidence in these well-connected neighborhoods.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Paphos.
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.
Which property types are increasing faster in value in Paphos as of 2026?
As of early 2026, the property types increasing fastest in value in Paphos are, in order: apartments and condos (especially holiday-focused units), followed by villas in lifestyle zones like Coral Bay and Tala, and then townhouses and maisonettes.
Apartments in Paphos have appreciated by approximately 7% to 9% annually, outperforming other segments thanks to their liquidity, affordability, and strong appeal to both investors and lifestyle buyers.
The main reason apartments are outperforming in Paphos is their alignment with tourism demand and short-term rental economics, as more buyers can afford them and they generate consistent rental income year-round.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much do properties cost in Paphos?
- How much should you pay for a house in Paphos?
- How much should you pay for an apartment in Paphos?
- How much should you pay for a villa in Paphos?
- How much should you pay for lands in Paphos?
What is driving property prices up or down in Paphos as of 2026?
As of early 2026, the top three factors driving property prices in Paphos are sustained tourism and short-term rental demand, the ongoing Paphos airport expansion, and strong foreign buyer activity supported by Cyprus's permanent residency program.
The single factor with the strongest upward pressure on Paphos property prices is constrained coastal supply, as most desirable beachfront and sea-view locations have limited new construction potential, which keeps competition high and prices rising.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Paphos here.
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What is the property price forecast for Paphos in 2026?
How much are property prices expected to increase in Paphos in 2026?
As of early 2026, property prices in Paphos are expected to increase by approximately 4% to 7% over the course of the year, representing a moderation from the faster growth seen in 2024 and early 2025.
Forecasts from different analysts range from a conservative 3% to an optimistic 8%, with most expecting growth in the 5% to 6% range for the blended Paphos market.
The main assumption underlying most price increase forecasts for Paphos is that ECB interest rates will remain stable or decline slightly, keeping mortgage affordability manageable and allowing demand to stay robust throughout 2026.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Paphos.
Which neighborhoods will see the highest price growth in Paphos in 2026?
As of early 2026, the neighborhoods expected to see the highest price growth in Paphos are Universal, Chloraka, Geroskipou, and Tala, all of which offer a combination of rental demand, improving infrastructure, and relative value compared to prime coastal strips.
These areas are projected to experience price growth of 6% to 9% during 2026, slightly outpacing the district average thanks to their appeal to both investors and families relocating to Paphos.
The primary catalyst driving expected growth in these neighborhoods is the spillover effect from overheated coastal zones, where buyers seeking better value are shifting to adjacent areas with good access and amenities.
One emerging neighborhood in Paphos that could surprise with higher-than-expected growth is Konia, which offers strong livability, good road connections, and more affordable entry points compared to established coastal areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Paphos.
What property types will appreciate the most in Paphos in 2026?
As of early 2026, the property type expected to appreciate the most in Paphos is well-located apartments and condos, particularly those in rental-friendly neighborhoods with walkability and proximity to the coast.
The projected appreciation for top-performing apartments in Paphos during 2026 is approximately 6% to 8%, driven by continued investor demand and strong short-term rental economics.
The main demand trend driving appreciation for apartments in Paphos is the combination of tourism growth (Cyprus welcomed over 4 million visitors in 2024) and the rising preference for flexible, lower-maintenance properties among international buyers.
Conversely, large detached houses in inland locations are expected to underperform in 2026 because they appeal to a narrower buyer pool, require higher maintenance, and offer lower rental yields compared to apartments.
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.
How will interest rates affect property prices in Paphos in 2026?
As of early 2026, the impact of interest rates on Paphos property prices acts primarily as a speed limiter, with current Eurozone rates keeping borrowing costs elevated enough to moderate local buyer demand while cash-rich foreign buyers remain less affected.
The ECB deposit facility rate currently sits around 3%, and most analysts expect gradual cuts through 2026, which should bring mortgage rates in Cyprus (currently averaging about 3.7%) down slightly, improving affordability.
A 1% decrease in interest rates typically increases purchasing power by about 10% in Paphos, meaning a household can afford a property worth roughly €30,000 to €40,000 more without changing their monthly payment.
You can also read our latest update about mortgage and interest rates in Cyprus.
What are the biggest risks for property prices in Paphos in 2026?
As of early 2026, the three biggest risks for property prices in Paphos are a tourism shock from geopolitical or economic disruption, interest rates staying restrictive longer than expected, and a potential oversupply of new apartments in certain submarkets.
The risk with the highest probability of materializing in Paphos is a temporary cooling in tourism demand, as the district is more exposed to visitor flows than other parts of Cyprus, and any slowdown in arrivals would directly impact short-term rental income and investor sentiment.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Paphos.
Is it a good time to buy a rental property in Paphos in 2026?
As of early 2026, it is generally a good time to buy a rental property in Paphos, especially if you focus on well-located apartments in neighborhoods like Kato Paphos, Universal, or Chloraka where rental demand is strong and yields average 5% to 6%.
The strongest argument in favor of buying now in Paphos is that rental yields remain attractive (around 5.4% for apartments and up to 7.5% for short-term holiday units), while prices are expected to continue rising, meaning waiting could mean paying more for the same property.
However, the strongest argument for waiting is that Eurozone interest rates may decline further in late 2026, which would improve your borrowing terms and monthly cash flow if you are financing the purchase with a mortgage.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Paphos.
You'll also find a dedicated document about this specific question in our pack about real estate in Paphos.
Buying real estate in Paphos can be risky
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Where will property prices be in 5 years in Paphos?
What is the 5-year property price forecast for Paphos as of 2026?
As of early 2026, cumulative property price growth in Paphos over the next 5 years is expected to reach 20% to 35%, reflecting continued demand from international buyers and limited supply in desirable coastal areas.
The range of 5-year forecasts spans from a conservative 15% (if rates stay restrictive and tourism weakens) to an optimistic 50% (if rates fall meaningfully and demand accelerates), with most analysts clustering around the 25% to 30% range.
This translates to a projected average annual appreciation rate of about 3.7% to 6.2% per year over the next 5 years in Paphos, depending on which scenario unfolds.
The key assumption most forecasters rely on for their 5-year Paphos predictions is that Cyprus will maintain political stability, continue improving infrastructure, and benefit from sustained tourism growth throughout the period.
Which areas in Paphos will have the best price growth over the next 5 years?
The three areas in Paphos expected to have the best price growth over the next 5 years are Chloraka (coastal-adjacent with improving stock), Geroskipou (strong family demand and good access), and Upper Tala (villa segment with sea views and scarcity).
These areas are projected to see 5-year cumulative price growth of 30% to 45%, outpacing the district average thanks to their combination of relative value and strong underlying demand drivers.
This differs from the shorter-term 2026 forecast primarily because the 5-year outlook allows time for infrastructure improvements (like the airport expansion) to fully translate into price premiums, benefiting areas that are currently one step removed from prime locations.
The currently undervalued area with the best potential for outperformance over 5 years is Mesogi, which offers good livability, family-friendly amenities, and significantly lower prices per square meter than nearby coastal neighborhoods.
What property type will give the best return in Paphos over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Paphos is mid-sized apartments (one to two bedrooms) in rental-friendly neighborhoods, combining capital appreciation with consistent rental income.
The projected 5-year total return for well-located apartments in Paphos is approximately 45% to 65%, combining an estimated 25% to 35% appreciation with cumulative rental income of around 20% to 30% (assuming a 5% to 6% annual yield).
The main structural trend favoring apartments over the next 5 years in Paphos is the growing preference for flexible, lower-maintenance properties among both lifestyle buyers and investors, supported by strong short-term rental demand from tourism.
For buyers seeking a balance of return and lower risk, townhouses in established neighborhoods like Universal or Chloraka offer slightly lower yields but more stable appreciation and broader buyer appeal at resale.
How will new infrastructure projects affect property prices in Paphos over 5 years?
The top three major infrastructure projects expected to impact Paphos property prices over the next 5 years are the Paphos airport expansion (increasing capacity to 5 million passengers annually), the EU-funded Recovery and Resilience Facility investments in public services, and planned marina and waterfront improvements.
Historically, properties near completed infrastructure projects in Paphos command a price premium of about 10% to 20% compared to similar properties without such connectivity advantages.
The neighborhoods that will benefit most from these infrastructure developments in Paphos are Chloraka and Geroskipou (close to the airport), Kato Paphos (waterfront improvements), and Tala (improved road access and visibility from development activity).
How will population growth and other factors impact property values in Paphos in 5 years?
Cyprus's population is projected to continue growing at about 1% to 1.5% annually, which will add consistent underlying demand for housing in Paphos and support price appreciation over the next 5 years.
The demographic shift with the strongest influence on Paphos property demand will be the increasing number of remote workers and retirees relocating from Northern Europe, who tend to favor coastal properties with good infrastructure and lifestyle amenities.
Migration patterns, including strong inflows from the UK, Israel, Germany, and CIS countries, are expected to keep foreign buyer activity elevated in Paphos, accounting for 50% to 60% of transactions and supporting premium pricing in desirable neighborhoods.
The property types and areas that will benefit most from these demographic trends in Paphos are two-bedroom apartments in walkable coastal zones (appealing to retirees and remote workers) and family villas in areas like Peyia and Tala (attracting relocating families).
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.
What is the 10 year property price outlook in Paphos?
What is the 10-year property price prediction for Paphos as of 2026?
As of early 2026, cumulative property price growth in Paphos over the next 10 years is expected to reach 50% to 80%, driven by sustained tourism demand, population growth, and the district's appeal as a lifestyle destination within the EU.
The range of 10-year forecasts spans from a conservative 35% (if tourism weakens or rates stay elevated) to an optimistic 100% (if strong demand persists and supply remains constrained), with most projections clustering around 60% to 70%.
This translates to a projected average annual appreciation rate of about 4.1% to 6.0% per year over the next decade in Paphos, broadly in line with the district's historical performance.
The biggest uncertainty factor in making 10-year property price predictions for Paphos is the trajectory of the Eurozone interest rate cycle, as structural changes in borrowing costs would significantly affect affordability and demand over such a long period.
What long-term economic factors will shape property prices in Paphos?
The top three long-term economic factors that will shape property prices in Paphos over the next decade are Eurozone interest rate policy (affecting affordability), Cyprus's GDP and services export growth (driving incomes and confidence), and tourism competitiveness (supporting rental demand and second-home purchases).
The single long-term economic factor with the most positive impact on Paphos property values will be Cyprus's continued integration into European travel and investment flows, as EU membership provides regulatory stability and attracts a broad international buyer pool.
Conversely, the single long-term economic factor posing the greatest structural risk to Paphos property values is potential overreliance on tourism, which makes the market vulnerable to external shocks like pandemics, geopolitical tensions, or shifts in travel preferences.
You'll also find a much more detailed analysis in our pack about real estate in Paphos.
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) | It's the official central bank price index for Cyprus residential property. | We used it as the anchor for how fast prices were rising in Paphos for houses vs apartments. We then projected those official rates forward to January 2026. |
| RICS Cyprus Property Index (with KPMG) | RICS is the global professional body for chartered surveyors. | We used it to cross-check market direction and identify which segments were strongest. We also used its yield figures to ground the rental investment sections. |
| CYSTAT (House Price Index) | It's the national statistics agency publishing official price data. | We used it as a second official check on national price momentum. We cross-referenced it with Central Bank and RICS data. |
| European Commission (Cyprus forecast) | It's an EU institution publishing standardized macro forecasts. | We used it to frame 2026 to 2027 demand drivers like growth and inflation. We translated the macro outlook into housing demand implications. |
| IMF (Cyprus country page) | The IMF is a top-tier international organization for economic projections. | We used its 2026 growth and inflation projections to underpin our base case. We cross-checked the trajectory against European Commission signals. |
| ECB (Key interest rates) | It's the official source for Eurozone policy rates affecting Cyprus mortgages. | We used it to explain how borrowing costs shape affordability and demand. We mapped rate direction to price growth scenarios. |
| FRED (ECB Deposit Facility Rate) | It's a respected public data platform distributing central bank series. | We used it to confirm the recent level and timeline of ECB rates around early 2026. This supports our interest rate assumptions. |
| CYSTAT (Demographic Statistics) | It's an official population release from the Cyprus government. | We used it to ground population growth as a core housing demand driver. We linked that demand pressure to Paphos coastal submarkets. |
| Hermes Airports (Phase II works) | It's the airport operator's official project communication. | We used it to identify a concrete infrastructure catalyst for Paphos demand. We described how connectivity upgrades typically support property values. |
| European Commission (Cyprus RRF) | It's the EU's official framework for funded reforms through 2026. | We used it to support the public investment tailwind narrative for 2026. We connected that tailwind to construction, jobs, and housing demand. |
| Danos (Cyprus Market Insight) | Danos is a long-established real estate consultancy in Cyprus. | We used it to cross-check regional momentum like Paphos apartment growth. We only used data where it clearly referenced statistical sources. |
| Landbank Analytics | It's a recognized Cyprus market analytics provider citing transaction data. | We used it to help level our price per square meter estimates. We combined it with official growth rates to express January 2026 price points. |
| Global Property Guide | It's an international property research platform with standardized yield data. | We used it to benchmark gross rental yields in Paphos against other Cyprus districts. We validated these figures against RICS data. |
| Trading Economics | It's a widely-used platform aggregating official economic indicators. | We used it to track the Cyprus House Price Index over time. We compared quarterly movements against Central Bank and CYSTAT releases. |
| PwC Cyprus | PwC is a major professional services firm with local market analysis. | We used their transaction volume analysis to understand regional buyer activity. We verified their DLS-sourced data against official releases. |
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If you want to go deeper, you can read the following: