Paphos has a fast growing tourist trade and a property market to match. Although the expand of investment locations in Cyprus, Paphos property holds its value and is set to enjoy further growth in near future.
Paphos property growth indicators were at their peak between 1996 and 2002. During this time four out of five properties in Paphos were held by non-Cypriots and the tourist infrastructure was well developed with natural hillside beauty and a cultural heritage that was not performed so well in all other towns on the island. In time new villages inside the Paphos area appeared to cater for the increasing numbers of people retiring and moving there to live permanently.
Nowadays, average price on Paphos properties 20% to 30% higher than properties with similar characteristics in Protaras or Larnaca. This seems to have decreased the demand for Paphos properties while other areas of Cyprus have become developed with similar standards to Paphos, for a fraction of the price. This slowdown is seen as momentary as demand growth for the other locations that slowly moving prices in these regions up to a similar level.
Many investors were the first to make the geographical change of the area since they expected the slowing down of the market. This phenomenon keeps prices constrained in Paphos and many investors say that the market has now became stable.
Present Condition and Prognosis
It is true the property industry in Paphos seems to decrease the activity that it used to have over previous years and this is due to the higher prices here compare to other similar locations in Cyprus. The increase of Demand is expected again when prices in other towns will arrive at similar levels to those in Paphos. Taking into consideration the existing growth rates, this is expected arise within the next two or three years.
