Why Investors Are Turning to Paphos and Limassol

The world-famous Aphrodite Rock as seen from the cliff tops surrounding the site

Paphos: A Rising Star

Paphos is no longer the quiet alternative—it is rapidly becoming a prime investment hub. In the first half of 2025, the city recorded €485 million in property transfers, a 20% year-on-year increase, with 1,653 sales transactions. Luxury homes over €500,000 now account for more than half of Cyprus’s national total, and March alone saw 204 foreign buyer contracts, the highest in the country.

The attraction lies in a blend of strong appreciation, lower entry costs compared to Limassol, and a coastal lifestyle that resonates with international buyers. Demand is especially strong in the premium segment, where supply remains limited. At Pafilia, we are actively delivering new lifestyle communities and luxury residences to meet this momentum.

Limassol: Prestige and Stability

While Paphos gains ground, Limassol continues to hold its position as Cyprus’s most established and internationally recognised market. In the first half of 2025, transaction values reached approximately €800 million, representing a third of the island’s total. Average residential prices have climbed to €3,200 per square metre, with coastal luxury properties commanding between €6,000 and €8,000 per square metre.

Limassol offers investors depth, liquidity, and prestige. From seafront apartments to high-end villas, it remains a benchmark market that attracts premium buyers and delivers consistent yields. For those seeking capital preservation and long-term security, Limassol continues to provide strong fundamentals.

Outlook: 2025–2026

Looking ahead, Paphos offers significant upside potential for capital appreciation, while Limassol delivers stability and strong rental yields. Buyers are increasingly selective, prioritising projects with energy efficiency, modern amenities, and proximity to lifestyle infrastructure such as marinas, golf courses, and wellness destinations.

For investors, combining exposure to both Paphos and Limassol creates a balanced strategy—capturing the growth story of one market and the enduring prestige of the other.

Pafilia’s Role

As one of Cyprus’s leading property developers, Pafilia is uniquely positioned to shape this evolving landscape. With a prime landbank across both cities, decades of award-winning experience, and an integrated approach that spans development, sales, and aftercare, we deliver more than properties—we create long-term value, sustainable design, and lifestyle-driven investments.

We invite investors and partners to explore the opportunities ahead in Cyprus’s most dynamic markets. At Pafilia, we are shaping the future of real estate in Paphos and Limassol, building not just homes but destinations for growth, security, and exceptional living.

Cyprus Real Estate 2025: Why Investors Are Turning to Paphos and Limassol

Paphos: A Rising Star

Limassol: Prestige and Stability