Paphos has a flourishing tourist trade and a property market to match. Despite the existence and enhancement of other investment locations in Cyprus, property here holds its value which is bound to enjoy further increase in years to come.
Among the top Cyprus locations Paphos is the most suitable area to attract all kinds of investment for any budget. The stunning sea views, the history and the treasures that time has left behind, the picturesque villages, the three luxurious golf courses and the vast variety of activities to indulge in make Paphos a highly sought after area from people of different backgrounds.
In the north of Paphos lies Sea Caves, an area close to the unique Akamas Nature Reserve. A beachfront area with properties having a low building density of less than 10% allow the investors to choose from the villas/houses which are built on large plots with sea views. Also there are maisonettes, penthouses and apartments, both resale and off-plan available as investment property. As the area is unique with limited expansion, low density buildings will always be in demand no matter what the market predictions are.
Paphos is experiencing a soaring demand with holiday homes mostly preferable by the investors. The advantage of Paphos area is the fact that is a year round holiday destination, allowing also the related and other businesses to operate all year. As a result Paphos maintains a high demand in business rentals as well. More than anywhere else in Cyprus Paphos is offering higher returns. Several surveys indicate that holiday rentals in and around the Paphos area are, actually, making some of the best returns out of investment on the island. As a result, investors are getting the opportunity to fully fund their investment just by renting.
In the near future several projects will add to the value of the properties in Paphos. For example the new marina that is up coming in Kissonerga area with capacity of 1000 boats, a boatyard and slipways, will generously affect neighbouring areas like Chlorakas, Pegia and Tala. The project is estimated to cost around €70 millions featuring houses, villas, apartments, bungalows, shopping malls, restaurants and landscaped gardens. Such projects increase significantly the value of the properties and offer the investors great opportunities for smart investments.
Another fact that will seem interesting for the potential investors is the operation of the new private university in Paphos. By attracting students from the villages and other nearby cities, it instantly creates the need for housing. The all year round letting market will be expanded apart from holiday rentals to student rentals in the area around the University campus.
Property growth figures in Paphos had reached a peak between 1996 and 2002. During this time four out of five properties in Paphos were owned by foreigners and the tourist infrastructure was well advanced with natural hillside beauty and a cultural heritage that outperformed all other towns on the island. In time new villages within the Paphos area emerged to provide a roof for the growing numbers of people moving there to live permanently throughout retirement years.
Today, Paphos properties are priced on average 20% to 30% higher than properties with similar characteristics in other areas. This seems to have slowed down the demand for Paphos properties while other areas of Cyprus have become developed with comparable standards to Paphos, for a portion of the price. This slowdown is expected to be temporary as demand increases for the other locations and subsequently drives prices up to a similar level with Paphos area. Currently there is major development going on all over the city and the suburbs, while government has already made efforts to improve the area’s infrastructure with more plans for the future, not to forget the Paphos International airport that has been operating since 1982.
Many investors were the first to make the geographical shift from Paphos since they predicted the slowing down of the market. This phenomenon is keeping prices constrained in Paphos and many investors argue that the market has now stabilized. It is true the property industry in Paphos seems to lack the activity that it enjoyed over previous years and this is due to the higher prices here when compared to other similar locations in Cyprus. Demand is expected to increase again when prices in other towns reach similar levels to those in Paphos. Considering the current growth rates, this is expected to occur within the next two to three years. Therefore Paphos offers a good opportunity for a long-term investment that will bear fruits after the expected increase in demand will cause a new rise in Paphos property prices.
In order to ensure the best deal while investing in a property all you need to do is to contact a good investment property dealer. With their help you can buy property in all the hot locations and in many other places of Paphos as well. So, before the property prices soar high make the most of the current economic situation to crack the best deal. It is advisable to do as much research as possible before committing yourself to any contract. Even though most Cyprus property developers and real estate agents operate in a highly professional manner in the business might lurk some unreliable characters. Thus a little research will take you a long way and could save you a lot of possible hassle further down your way.
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