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As per recently highlighted Sunday Times article, Cyprus is very much becoming an ideal market destination with significant levels of investments across the island. There are many factors for this boom including stable economy, strong infrastructure, independent judiciary system, linguistic friendly environment and business security. The major areas of investment in the Paphos region are listed below:
- Heavy investment plan for the development of 1,000-berth luxury marina is about to inaugurate in Coral Bay (Paphos)
- Paphos already possess 3 golf courses with internationally applauded Aphrodite Hills Complex; however, there are some additional 10 courses in plan, six of them are within the Paphos region with a PGA championship course.
- There is a big rejuvenation project for old Paphos harbour and other major beach improvements with destined from the harbour to Geroskipou.
- The Cypriot Government is investing quite heavily in the Paphos region; Paphos International Airport renovation is to be completed in 2008 that will enable the airport to facilitate and outfit about 2.7 million passengers p.a.
- One of the largest in the world and very first for Cyprus, there $1 billion plan for mixed-use developments, comprising of a 250 acre area which will be named as ‘Neapolis’. It includes a new hospital, research and development centre, international business centre, private university and office park, additionally cultural and leisure facilities include theatres and sports grounds.
- A new motorway linking Paphos International Airport to Polis is commencing soon that will appreciably minimize the travel time to the whole region and increased levels of visitors and residents.
This sustained level of investments is leading towards a significant level of growth in Cyprus economy and its real estate market.
A. Average Sale Prices for 2006
|
Cyprus |
Nicosia |
Limassol |
Larnaca |
Famagusta |
Paphos |
Detached House 2bdr |
£131,000 |
£147,000 |
£146,000 |
£124,000 |
£122,000 |
£142,000 |
Detached House 3 bdr |
£181,000 |
£169,000 |
£189,000 |
£161,000 |
£156,000 |
£201,000 |
Detached House 4 bdr |
£293,000 |
£311,000 |
£314,000 |
£259,000 |
£258,000 |
£324,000 |
Semi-detached 2 bdr |
£102,000 |
£109,000 |
£99,000 |
£91,000 |
£88,000 |
£98,000 |
Semi-detached 3 bdr |
£127,000 |
£140,000 |
£138,000 |
£122,000 |
£109,000 |
£128,000 |
Semi-detached 4 bdr |
£177,000 |
£161,000 |
£166,000 |
£154,000 |
£195,000 |
£178,000 |
Studio |
£47,000 |
£50,000 |
£47,000 |
£42,000 |
£41,000 |
£48,000 |
Apartment 1 bdr |
£51,000 |
£54,000 |
£51,000 |
£46,000 |
£45,000 |
£53,000 |
Apartment 2 bdr |
£79,000 |
£85,000 |
£80,000 |
£70,000 |
£69,000 |
£82,000 |
Apartment 3 bdr |
£91,000 |
£96,000 |
£83,000 |
£79,000 |
£77,000 |
£95,000 |
- Based on a sample of 1,000 properties across Cyprus. Prices rounded to the nearest thousand.
B. Average Rental Prices for 2006
|
Cyprus |
Nicosia |
Limassol |
Larnaca |
Famagusta |
Paphos |
Studio |
£200 |
£240 |
£220 |
£200 |
£170 |
£170 |
Apartment 1 bdr |
£240 |
£300 |
£250 |
£240 |
£200 |
£210 |
Apartment 2 bdr |
£290 |
£340 |
£310 |
£300 |
£245 |
£255 |
Apartment 3 bdr |
£355 |
£400 |
£360 |
£350 |
£290 |
£300 |
- Based on a sample of 1,000 properties across Cyprus. Houses are not included since they are not recommended for "buy to let" investment - annual rental return is usually less than 4%. Prices are rounded.
C. Average Annual Rental Return for 2006*
|
Cyprus |
Nicosia |
Limassol |
Larnaca |
Famagusta |
Paphos |
Studio |
5.9% |
6.2% |
6.5% |
6.7% |
5.4% |
4.7% |
Apartment 1 bdr |
7.0% |
8.2% |
6.7% |
8.0% |
6.5% |
5.6% |
Apartment 2 bdr |
5.0% |
5.5% |
5.0% |
6.0% |
4.6% |
4.3% |
Apartment 3 bdr |
5.3% |
5.6% |
5.9% |
6.1% |
5.2% |
4.9% |
Average |
6.0% |
6.7% |
6.0% |
6.7% |
5.4% |
4.9% |
- Based on data from table A & B above.
- The conclusion is that 1 bedroom apartments offer the best annual return - an average of 7%. As far as towns Nicosia* & Larnaca** are leading with an average of 6.7% and Paphos*** is last with 4.9%.
- Nicosia not only is the capital and the largest town in Cyprus but also has many universities and colleges that increase the demand for rental properties.
- Larnaca has good rental return due to the fact that the property prices are lower than other towns.
- Paphos even though it has higher rental rates than Famagusta the rental return is lower due to the fact that properties in Paphos are more expensive.
 
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