Paphos Becomes Top Choice for Foreign Buyers
Foreign demand reshapes Cyprus property market
Cyprus’s real estate market is increasingly driven by foreign demand, with Paphos emerging as the leading destination for international buyers. According to DOM data, the coastal city has overtaken Limassol in the number of transactions involving foreign investors.
Official statistics from the Ministry of Interior show that foreign buyers purchased 962 residential properties over the past year. Of these, 577 transactions involved non-European Union citizens, while 385 were made by EU nationals. Paphos accounted for the largest share, with 313 purchases by non-EU buyers and 189 by EU citizens.
Foreign capital dominates market structure
Foreign investors now play a central role in Cyprus’s housing market. In most regions, particularly coastal cities, buyers from outside the European Union represent the majority of transactions.
Paphos stands out because it attracts both EU and non-EU buyers, creating a diversified investor base but also increasing exposure to external economic and policy factors.
British and Israeli buyers remain among the most active, while Limassol and Larnaca continue to attract investors from the Middle East.
Why Paphos overtook Limassol
The shift reflects pricing and supply dynamics. Limassol remains the most expensive market in Cyprus, focused on premium developments, while Paphos offers more affordable property options with similar coastal appeal.
Market analysis indicates that Paphos combines lower prices with one of the fastest growth rates on the island.
Infrastructure also plays a role, including an international airport, tourism demand and the rise of remote work, which supports demand from international buyers.
Coastal cities concentrate investment flows
Foreign investment is concentrated in coastal areas, with Paphos and Limassol accounting for the majority of transactions. Inland regions such as Nicosia rely more on domestic demand.
This highlights a structural feature of the Cypriot market: foreign buyers are primarily targeting resort areas for rental income or second homes.
Paphos benefits from a balance between tourism infrastructure and a lower density of development, making it attractive for long-term residence.
Risks linked to external dependence
Despite strong growth, Cyprus’s property market remains vulnerable. A high share of foreign buyers means that changes in visa rules, taxation or global economic conditions can quickly affect demand.
Regional imbalances are also increasing, as rising prices in coastal areas reduce affordability for local residents.
Georgia offers a more accessible alternative
Compared with Cyprus, Georgia presents a more accessible and diversified market. In 2025, the country recorded 78,500 real estate transactions, with significantly lower entry prices than in Cyprus.
Cities such as Tbilisi and Batumi offer stronger rental yields and faster transaction dynamics, particularly in the resort segment. The market is also less dependent on a single buyer group.
As International Investment experts report, Paphos’s leadership reflects strong short-term demand, but structurally Cyprus remains dependent on foreign capital and premium coastal assets. Compared with Cyprus, Georgia currently offers better accessibility, liquidity and demand diversification, making it a more flexible market for investors.