All sources have been thoroughly verified for credibility. Furthermore, a local real estate expert has reviewed and approved the final article.
Yes, the analysis of Paphos' property market is included in our pack
Thinking of investing in real estate in Paphos? You're not alone!
Many people are charmed by Paphos' Mediterranean charm and dream of owning a cozy apartment or a modern townhouse in this city.
Still, would it be a smart investment? Are property prices increasing in Paphos? What is the price per sqm? Should I buy property in the Kato Paphos or Peyia? Are there any hidden fees? Where can you get a rental yield above 7%?
In this article, everything is sorted out for you.
The Investropa team knows this market like the back of their hand. As a matter of fact, we've gathered all our findings in a pack. Get it now.
In the lines below, we'll share useful information and some practical tips.
How's the real estate market in Paphos?
What's the current state of the property market? Data will give us the insights we need.
Property types
In Paphos, you can find a variety of properties for sale to suit different preferences and budgets.
These include apartments, villas, townhouses, and land plots.
Apartments offer convenient living with communal amenities, while villas provide more space and privacy. Townhouses blend the benefits of both apartments and villas.
Additionally, there are land plots available for those interested in building their own custom homes.
Each type of property offers unique features, catering to a range of lifestyles and investment opportunities in the vibrant city of Paphos.
Better to buy or rent?
(If you plan to use it yourself and not as a rental)
Whether you're considering settling in Paphos or already living there, you might be thinking about the pros and cons of buying versus renting a property in this coastal city in Cyprus.
Generally, buying is a better choice than renting in Paphos due to its low property prices and potential for capital appreciation.
On the other hand, if you value flexibility, renting might be the better choice.
Property prices in Paphos
On average, according to the updated data from Statistical Service of the Republic of Cyprus, buying a property in Paphos would cost you around $4,800 per square meter.
Naturally, things are quite spread out. The value of a square meter for a property in Paphos might differ from an apartment in Kato Paphos. We actually offer a more in-depth analysis in our pack for buying property in Paphos and in Cyprus.
To put things in perspective, it means that, instead of buying an apartment in Paris or London, you can afford 3 properties in Paphos.
Also, housing prices in Paphos are 30% cheaper than in Valletta.
The most expensive neighbourhoods in Paphos are probably Sea Caves, Coral Bay, and the Paphos Harbour area, while the least expensive areas are likely to be the villages in the Paphos region, such as Anarita, Tala, and Peyia.
Trends
First and foremost, it's important to note that Cyprus currently offers peace and stability to investors. The last Fragile State Index that has been reported for this place is 56.9.
It is something to have in mind when wondering whether it's a good investment to buy a property in Paphos.
Besides that, if we look at the IMF's GDP forecasts, Cyprus's economy is expected to soar by 12.9% in the coming 5 years, resulting in an average GDP growth rate of 2.6%.
If you want to invest in real estate in Paphos it's a good thing because a growing economy means a strong consumer confidence level, encouraging more people to invest in homeownership, fostering a healthy real estate market.
Also, in Cyprus, the average GDP per capita has changed by 8.8% over the last 5 years. It's a satisfactory number.
These are positive signals showing that property prices in Paphos might increase in 2024 and during the coming years.
Looking for more updated data? We've done a big-picture study to find out if it's a good idea to purchase property in Cyprus right now.
Buying property in Paphos
Buying real estate in Paphos can be challenging due to the difficulty of obtaining reliable and up-to-date information throughout the process. That's why we have created the pack to buy property in Paphos and in Cyprus.
Buying process
Inside our pack, we've outlined the complete buying process, including a detailed breakdown of prices and yields per area, tips for negotiating the price, and information about mortgage options.
Here, we're presenting you with a more straightforward version.
This is the step-by-step process to purchase a property in Paphos:
- Research the Paphos property market and local regulations.
- Hire a certified real estate agent in Paphos.
- Obtain a Tax Identification Number (TIN) from the Cyprus Tax Department.
- Choose your property and negotiate the price with the seller or developer.
- Sign a Reservation Agreement and pay a reservation fee (around 1-2% of the property price).
- Conduct property surveys and due diligence, including obtaining a Structural Survey Report.
- Draft and sign the Sale Agreement (Contract of Sale) with the help of a lawyer.
- Pay the agreed balance as per the payment schedule outlined in the contract.
- Apply for permission from the Council of Ministers (for non-EU citizens) to purchase the property.
- Register the property at the Paphos Land Registry with the Land Registry Department.
- Pay relevant taxes and fees, including Property Transfer Fees and Stamp Duty.
- Transfer ownership and receive the title deeds once the registration process is complete.
Also, if you're not from the country, you might want to check our article on how to buy property as a foreigner in Cyprus.
Make a profitable investment in Paphos
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Where to find a property
If you're searching for your dream property in Paphos, these websites can help make your search easier:
- Kuutio Homes - An award-winning luxury property developer in Cyprus, known for creating exceptional properties featuring stunning designs and natural materials.
- Altia - Offering a diverse selection of properties across the country, including residential, commercial, land, and investment opportunities.
- Ktimatogora - Providing an impressive portfolio of properties and collaborating closely with developers to turn your dream home into reality.
- Spitogatos - Offering a wide range of properties along with advanced search filters and an interactive map feature.
- Zoopla - Presenting a vast selection of homes, apartments, and new developments with captivating sea views and modern amenities.
Also, know that we have included contacts of real estate agencies, property lawyers, moving companies, expats communities and more in our pack for buying property in Cyprus.
What you can get
As mentioned before, the average price per sqm in Paphos is $4,800. The cost of a one-bedroom property (60 sqm) is approximately $288,000, and a two-bedroom (85 sqm) would be around $408,000.
However, as you can guess, property prices will differ based on the attributes of the property and its specific location.
Expect property prices to be higher in the premium areas of Paphos. For example, if you're interested in a residence in Kato Paphos, it could cost you roughly $1,170,000; on the other hand, a house in Peyia would be priced at approximately $840,000.
Of course, some areas are cheaper. You might find an apartment in Chlorakas for $160,000 or an apartment in Geroskipou that's only $130,000.
Find a more detailed price list in our full pack for buying property in Cyprus.
Common pitfalls
Here are the main pitfalls when buying a property in Paphos, Cyprus:
- Title deed delays: Beware of potential delays in obtaining title deeds due to the island's complex legal process.
- Encroachment issues: Verify property boundaries, as encroachments onto neighboring land can lead to disputes.
- Immovable property tax: Be aware of the annual immovable property tax, which is levied based on property value.
- Capital gains tax: Understand the tax implications on property sales, especially for non-resident buyers.
- Non-EU citizen restrictions: Non-EU buyers face restrictions on the size and location of properties they can purchase.
- Seaside property restrictions: Coastal properties may have building limitations due to environmental and conservation regulations.
- Water scarcity: Ensure a reliable water supply, as the region faces occasional water shortages and restrictions.
- Title deed transfers: Be cautious when dealing with resale properties without fully transferred title deeds, as it may lead to complications during ownership transfer.
We don't want this to happen to you, so we have included a full checklist for your property investment in our pack of documents. Avoid these mistakes and save a lot of money.
Everything you need to know is included in our Cyprus Property Pack
Living in Paphos
Living in Paphos is a dream come true, with its stunning beaches, vibrant culture, and diverse outdoor activities, it's the perfect place to buy a property and call home.
Cost of living
The cost of living in Paphos is generally lower than in other parts of the country. Prices for basic items such as groceries, utilities, and transportation are relatively low, making Paphos an affordable place to live.
Here are some examples to better understand the cost of living in Paphos, Cyprus:
- Traditional Cypriot frappe coffee: $3 at a café in the Kato Paphos district.
- Rent for a one-bedroom apartment in the Universal area: $550/month.
- Meze dinner for two at a local tavern in Geroskipou: $40.
- 1.5-liter bottle of KEO beer: $2.50 at a supermarket.
- Electricity bill for an 85m² apartment using EAC (Electricity Authority of Cyprus): $110/month.
- Monthly membership at the Apollo Fitness Club: $25.
- Ticket to a film at Rio Cinema Paphos: $7.50.
- Local Halloumi cheese (250g): $3 at a nearby market.
Neighbourhoods
We want to make it easy to understand the information we give. So, we made a table that shows the different areas in Paphos. For yields, prices and rents, check our property pack.
| Neighborhood | Description | Strengths | Weaknesses |
|---|---|---|---|
Kato Paphos | Kato Paphos is the tourist hub, offering a lively atmosphere with numerous restaurants, bars, and proximity to historic sites like the Paphos Archaeological Park. | Great for tourists, bustling nightlife, and cultural experiences. | Potential for noise, crowded during peak tourist seasons. |
Chloraka | Chloraka is a peaceful residential area with beautiful coastal views and easy access to amenities, making it suitable for families and retirees. | Tranquil environment, scenic views, and convenience. | May lack entertainment options compared to more central neighborhoods. |
Universal | Universal offers a mix of residential properties and holiday homes, providing a diverse community and close proximity to Paphos town center. | Diverse community, convenient location, and potential rental income. | Can be crowded during peak tourist seasons, limited green spaces. |
Peyia | Peyia is an elevated neighborhood with stunning sea views, popular among expatriates, and nature enthusiasts due to its proximity to Akamas Peninsula. | Breathtaking views, peaceful surroundings, and access to nature. | May require a longer commute to central Paphos, limited public transport. |
Emba | Emba is a traditional Cypriot village known for its friendly community, local tavernas, and cultural heritage. | Charming village atmosphere, local culture, and community spirit. | May lack modern amenities found in more urban neighborhoods. |
Kissonerga | Kissonerga is a coastal neighborhood with a mix of residential areas and holiday villas, offering tranquility and access to the beach. | Peaceful coastal living, beautiful sunsets, and beach access. | Limited public transportation, some areas may be far from essential services. |
Tala | Tala is a picturesque village with panoramic views, attracting both locals and expats seeking a quieter lifestyle. | Stunning views, peaceful surroundings, and local charm. | Limited nightlife and entertainment options. |
Life in Paphos
Paphos is a tourist-oriented economy, with a large number of hotels, restaurants, and other tourist attractions. It also has a growing business sector, with several large companies based in the city.
What expats usually like the most in Paphos is the Mediterranean climate, the relaxed lifestyle, and the abundance of outdoor activities like hiking, swimming, and golfing. Additionally, the affordability of the cost of living and the ease of access to public transportation are also major draws.
Access to healthcare in Paphos is generally good, with a wide range of both public and private healthcare options available.
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Renting out in Paphos
This section is for you if you're interested in purchasing property not for personal residence, but rather for the purpose of renting it out to generate rental income.
Long-term
Tenant Profiles in Paphos
According to the data reported by Wikipedia, the home ownership rate in Cyprus is 70%, which is average.
It means that, if you decide to buy and rent out in Paphos, there will be a good number of people who can become your potential tenants.
If you decide to buy and rent out to long-term tenants, you should target professionals, students, and retirees who are looking for a safe and affordable place to live in Paphos. For short-term rental, you should target tourists, business travelers, and vacationers who are looking for a place to stay for a few days.
Here is a little summary table we've made for you.
| Property type and area | Profiles of potential tenants | What they are looking for | Expected monthly rent in $ |
|---|---|---|---|
Apartment in Paphos City Center | Professionals, retirees | Central location, amenities | $400 - $800 |
Villa in Kato Paphos | Families, tourists | Near attractions, spacious | $800 - $1,500 |
Apartment in Chloraka | Expats, professionals | Sea views, modern | $500 - $1,000 |
Studio in Geroskipou | Students, singles | Quiet area, affordable | $300 - $600 |
Apartment in Peyia | Retirees, families | Peaceful, coastal living | $400 - $800 |
House in Tala | Expats, families | Panoramic views, spacious | $800 - $1,500 |
Apartment in Emba | Professionals, commuters | Easy access to city | $500 - $1,000 |
Rental yields
These days, Paphos presents attractive opportunities in terms of rental yields. In fact, you can easily achieve yields above 9% due to the city's high demand for rental housing and relatively low cost of living.
Paphos properties that are close to amenities such as shops, restaurants, and public transportation tend to have the highest rental yields, as they are more attractive to potential tenants. Additionally, properties that have been recently renovated or are in good condition are also likely to have higher rental yields, as they are more desirable to tenants.
For further explanation and a more detailed breakdown, you can check the reports and analyses we have made.
Short-term
You could also decide to rent short-term to holidaymakers, business travellers, or those looking for a home away from home. Paphos is also a popular destination for weddings and honeymoons, so there may be a market for renting out short-term properties for those occasions as well.
If you decide to go with that option, look for properties in Kato Paphos, particularly around the beachfront area, and in Paphos Town, near the harbour.
Currently, there are approximately 1,425 active Airbnb listings in Paphos, reflecting a highly dynamic and bustling short-term rental market. The average daily rate stands around $82.
You have the opportunity to generate a nice additional income stream then. Based on feedback from online testimonials and data analytics platforms such as AirDNA, Guesty, and Inside Airbnb, people who offer short-term rentals in Paphos can make around $1100 per month. Also, the average occupancy rate is estimated at 76%.
Is it worth buying real estate in Paphos then?
Buying a property in Paphos, Cyprus, can be a fantastic decision, but it's not a one-size-fits-all choice. It's a smart move if you're looking for a permanent residence or a vacation home in a picturesque Mediterranean city.
Paphos offers a variety of property types to suit different budgets, and with relatively low property prices compared to many European cities, it's an affordable option. Moreover, the city's property market is showing positive signs with a growing economy and forecasts of potential price increases, making it a potentially lucrative long-term investment.
However, for those who prioritize flexibility and don't plan to stay in Paphos for extended periods, renting might be a more suitable option. Renting allows for easier mobility without the commitments and costs associated with property ownership.
When considering buying property in Paphos, be aware of potential challenges like delays in obtaining title deeds, property taxes, and restrictions on property purchases for non-EU citizens. It's crucial to conduct thorough research and seek professional guidance to navigate the buying process successfully.
For those interested in generating rental income, Paphos offers promising opportunities with rental yields that can exceed 9%. Whether you choose long-term or short-term rentals depends on your goals and target tenant profiles. Long-term rentals are suitable for professionals, students, and retirees, while short-term rentals cater to tourists and vacationers.
In conclusion, buying a property in Paphos can be a wise investment or a dream come true for those seeking a Mediterranean home, but it's essential to align your decision with your unique circumstances and goals.
Make sure you understand the real estate market in Paphos
Don't rush into buying the wrong property in Cyprus. Sit, relax and read our guide to avoid costly mistakes and make the best investment possible.
The content provided here is for informational purposes only and does not imply endorsement or advice. While we strive for accuracy, we do not guarantee the completeness or reliability of the information, including text, images, links, or other elements in this material. Following the content and analyses presented here does not assure specific outcomes. For guidance tailored to your individual circumstances, it is recommended to consult with a professional, such as a lawyer, accountant, or business advisor.