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Yes, the analysis of Paphos' property market is included in our pack
Thinking about buying a 3-bedroom apartment in Kato Paphos? It’s a fantastic area, but you're probably wondering: is now the right time to buy, or should you wait for prices to drop?
And what about long-term investment—should you look into other neighborhoods like Coral Bay or Tala where property values might appreciate more over time?
In this article, we’ll answer these questions. We know this market quite well - and we have put all our knowledge in the Cyprus Property Pack.
Will property prices increase in Paphos in 2025?
Yes, property prices in Paphos are expected to rise in 2025, driven by a combination of high demand and a limited supply of housing.
Backed by our fresh, in-depth market analysis, we’re confident that Paphos remains an attractive destination for both domestic and international investors.
While there are some economic challenges like inflation and rising interest rates, the main drivers behind Paphos’s price growth remain strong.
Demand, especially in the coastal and tourist-friendly areas, continues to outstrip supply, making any major price dips unlikely. Additionally, Paphos's appeal as a cultural and historical hub continues to attract buyers from around the world.
Signals pointing to a property price increase in Paphos
Here are some factors suggesting prices could increase:
The ongoing popularity of Paphos as a tourist destination is expected to continue into 2025, driving demand for holiday homes and investment properties, which in turn supports price growth.
Paphos is seeing increased interest from international buyers, particularly from non-EU countries, due to its attractive residency programs and favorable climate, which is likely to boost demand and prices.
The limited availability of land for new developments in prime areas of Paphos is expected to constrain supply, putting upward pressure on property prices.
Infrastructure improvements, such as road expansions and upgrades to public amenities, are set to enhance the appeal of Paphos, potentially increasing property values in the region.
The Cypriot government's continued efforts to promote the island as a business and financial hub are likely to attract more expatriates and investors, further driving demand for properties in Paphos.
The trend of remote working is encouraging more people to relocate to scenic and lifestyle-friendly locations like Paphos, increasing demand for residential properties.
The stable political environment in Cyprus compared to other regions is seen as a positive factor for property investment, encouraging more buyers to consider Paphos as a safe investment destination.
Signals pointing to a property price decrease in Paphos
Here are some factors suggesting prices could fall:
Rising inflation and living costs in Cyprus could impact household budgets, potentially reducing the purchasing power of local buyers and affecting demand for properties.
Higher mortgage interest rates, which have increased from previous lows, may make it more challenging for buyers to secure affordable financing, potentially cooling demand.
Economic uncertainties in the broader European market could impact investor confidence, leading to a slowdown in property purchases in Paphos.
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If property prices go up in Paphos, how much would they increase by?
If real estate prices in Paphos were to rise in 2025, the increase would likely be around 3% to 7% of their 2024 values.
Typically, real estate in emerging markets like Paphos appreciates by approximately 3% to 7% annually over the long term. However, fluctuations can occur depending on factors such as location, tourism trends, and property type.
It means that, if you spot a charming 2-bedroom villa in Kato Paphos for 300,000 euros today, don't be surprised if it's priced between 309,000 and 321,000 euros this time next year.
To give you a better understanding, here is a table that shows 7 types of Paphos real estate properties, their estimated prices in 2024, and projections for 2025 based on potential price increases of 3%, 5%, and 7%.
| Type of Property | Average Price in 2024 (€) | Price in 2025 (3% increase) | Price in 2025 (5% increase) | Price in 2025 (7% increase) |
|---|---|---|---|---|
| Traditional Stone House (100 sqm / 1,076 sqft) | €250,000 | €257,500 | €262,500 | €267,500 |
| Modern Apartment (80 sqm / 861 sqft) | €200,000 | €206,000 | €210,000 | €214,000 |
| Luxury Villa (150 sqm / 1,615 sqft) | €500,000 | €515,000 | €525,000 | €535,000 |
| Studio (40 sqm / 431 sqft) | €100,000 | €103,000 | €105,000 | €107,000 |
| Seaside Bungalow (90 sqm / 969 sqft) | €350,000 | €360,500 | €367,500 | €374,500 |
| Townhouse (120 sqm / 1,292 sqft) | €300,000 | €309,000 | €315,000 | €321,000 |
| Investment Property (60 sqm / 646 sqft) | €150,000 | €154,500 | €157,500 | €160,500 |
Everything you need to know is included in our Property Pack for Paphos
If real estate prices go up in Paphos, which areas are likely to see the biggest increases?
Today, people who want to move to Paphos are looking for a blend of traditional charm and modern amenities, which Kato Paphos offers. Hence, we could see a price increase there in 2025.
Also, lately, there's been a shift toward more vibrant, up-and-coming neighborhoods, and Universal Area has really taken off.
We like it when information is clear and easy to digest. So, here’s a table that highlights the areas where prices might rise the most, along with the reasons behind those expected increases. It’s very high-level. If you want more details on a specific area, please check our real estate pack tailored to the Paphos market.
| Neighborhood | Level of Increase | Why |
|---|---|---|
| Kato Paphos | High | Recent development of luxury resorts and its increasing appeal to international buyers as travel normalizes post-pandemic, driving demand. |
| Tombs of the Kings | High | Expected rise due to limited housing stock, upcoming renovations to heritage sites, and growing demand for prime properties near historical landmarks. |
| Universal Area | Medium-High | Ongoing gentrification and new transport links, along with several planned redevelopment projects in the area, are likely to push prices higher. |
| Chloraka | Medium | The shift towards hybrid workspaces is driving demand for residential properties near business districts, combined with new mixed-use developments. |
| Peyia | Medium-High | Eco-friendly urban projects and recent construction of new schools and parks are increasing its attractiveness for families, pushing prices upward. |
| Coral Bay | Medium | Investment in local infrastructure, such as the extension of road networks and renovation of tourist areas, is boosting long-term value. |
| Geroskipou | Medium-High | With new cultural and commercial spaces being developed, this trendy neighborhood is seeing increased demand from both residents and investors. |
| Anavargos | High | Upcoming large-scale urban regeneration projects and improved public transport access are expected to make this area more desirable. |
| Emba | Medium-High | Its proximity to Paphos city center, along with new office and residential developments, makes it increasingly attractive to professionals seeking more space. |
| Kissonerga | Medium | Gentrification and cultural regeneration projects are attracting new residents, leading to rising prices as the area becomes more fashionable. |
| Tsada | High | As new luxury developments are launched, demand for premium housing among wealthy buyers is expected to further increase property values. |
| Old Town Paphos | High | Upcoming restoration of historical sites and high-profile cultural projects are driving a renewed focus on this central, historic location. |
-The best areas to buy a property in Paphos
If I'm looking to invest in real estate, what types of properties should I focus on for the best value appreciation in Paphos?
In 2025, Paphos real estate trends focus on tech-smart, energy-efficient villas, coastal properties with stunning views, homes with outdoor spaces, and eco-friendly developments—all driving higher demand and prices. Here is a summary.
- Tech-Equipped and Energy-Efficient Villas:
Driven by remote work and sustainability trends, these homes offer smart technology features and energy-saving systems. They cater to expatriates and tech-savvy buyers, making them a hot commodity in 2025.
- Coastal Properties with Stunning Views:
With Paphos's beautiful coastline, properties offering sea views are in high demand. Proximity to beaches and the Mediterranean lifestyle are major factors driving value appreciation.
- Homes with Outdoor Spaces:
Post-pandemic, outdoor spaces like terraces, balconies, or gardens have become highly desirable. In Paphos, these features offer a connection to nature and are likely to drive up property values.
- Eco-Friendly Developments with Low Carbon Footprints:
Paphos's commitment to sustainability is boosting demand for eco-certified developments. Buyers are increasingly valuing properties that align with the region’s green goals, leading to price appreciation in this category.
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