Paphos enters 2026 as one of the strongest real estate investment locations in Cyprus, supported by rising prices, sustained foreign demand and steady rental activity. Recent Central Bank of Cyprus data shows that property values across the island continued increasing through 2025, with the Residential Property Price Index rising 4.7 percent year-on-year in Q2 2025 and 5 percent year-on-year in Q3 2025. Paphos was among the districts with the highest annual price growth, recording an estimated 8.9 percent rise in Q3 2025, reflecting its strong demand profile.
Apartments, which form the core of Paphos’ investment market, continued to outperform houses island-wide. The CBC reports that apartment prices increased 5.3 percent year-on-year in Q2 2025 and accelerated to 6.4 percent year-on-year in Q3 2025. This trend is consistent with Paphos’ market structure, where compact units supported by tourism, relocation and long-stay rentals experience high absorption and good liquidity.
Foreign demand remains one of Paphos’ most defining investment drivers. In Q3 2025, 68 percent of all property transactions in Paphos were made by overseas buyers, the highest share of any district in Cyprus. This sustained international activity supports both price resilience and ongoing demand for well-located apartments, particularly in coastal and central areas.
Sales activity across Cyprus also remained strong, with total island-wide contracts increasing 8.9 percent year-on-year in Q3 2025. Paphos continues to benefit from this momentum, supported by lifestyle-driven relocation, continued migration and an expanding service-sector economy. The district has shown consistent year-round rental demand, maintaining one of the most stable occupancy patterns on the island.
Looking ahead to 2026, Paphos’ investment potential is shaped by three structural forces: steady price growth backed by official CBC data, a high proportion of foreign buyers, and controlled supply supported by ongoing development regulation. Infrastructure improvements, coastal regeneration and a growing residential community contribute to a market that is maturing and becoming more predictable for investors.
For buyers entering the market in 2026, Paphos offers a combination of stable rental performance, sustained capital appreciation and strong liquidity. These conditions create a favourable environment for both medium and long-term investment strategies, especially for apartments positioned in central or coastal zones.
Luma Developers operates within this evolving landscape, delivering contemporary residential projects that reflect current demand patterns and the district’s steady movement toward higher quality and well-regulated development.
Luma Developers operates within the Paphos market, offering contemporary residential options that reflect current demand trends among both local and international buyers. Their projects contribute to the region’s evolving housing stock, particularly in areas experiencing structured growth.
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FAQ
What makes Paphos appealing for real estate investment in 2026?
The region shows stable demand, controlled supply and improving infrastructure supporting sustained property interest.
Are rental returns expected to remain steady in Paphos?
Rental activity is supported by tourism, long-term residents and ongoing inward migration.
Is Paphos suitable for long-term property value growth?
Moderate but consistent price increases indicate a foundation for gradual long-term appreciation.
Which areas of Paphos attract the most investor activity?
Districts such as Geroskipou, Kato Paphos and Peyia draw significant attention due to amenities and location appeal.
