Why Invest in Paphos – Cyprus Today?

Cyprus has long been a sought after overseas property location amongst the British. With various new resorts to choose from throughout the island, why exactly do many of today’s investors opt for comparatively pricey properties in Paphos?

Where the sea laps the coast in south western Cyprus, Paphos sits majestically as it has done for millenniums, and now offers both a rich history and sleek new developments to create a paradise holiday makers and property purchasers have been flocking to for years. Aphrodite, Goddess of Love and Beauty, may well balk at the amount of developments that have gone up in her legendary birthplace over the years but a sympathetic smile will also be in order as the entire area retains that certain aura of magical mystique that keeps bringing people back for more year after year.

In fact, for many Paphos is synonymous with Cyprus, so much so that between 1996 and 2002, four out of five properties here were owned by non-Cypriots. Later on, other destinations such as Limassol, Larnaca, Ayia Napa and Protaras sprung up as fresh international property hotspots boasting lower prices to entice more tourists and investors often seeking a throbbing night life and a home-from-home experience. Due to these new resorts, recent years have witnessed a levelling off in Paphos property prices, but nevertheless they remain around 15% higher today than on other parts of the island. So it is true to say that the property market in Paphos has lacked activity in recent years, but with increased demand in the other locations of the island, local property prices in these regions are now reaching similar levels to those in Paphos.

That said, Paphos as a property location seems to retain its cachet of distinction and, unlike many of its cheaper competitors, it boasts some of the greatest attractions on the island, including UNESCO world heritage sites, many fine golf resorts, and a brand new marina due for completion in the near future at Coral Bay. Added to this, Paphos exudes a well established air, with perhaps fewer signs of new development than elsewhere on the island, making the entire area a clear choice amongst many discerning, up-market investors.

Growth rates in Paphos have been very healthy at around 15% per annum over the past five years. With a strong and stable economy, zero unemployment and an excellent tax regime without inheritance tax, Cyprus is a tempting option to investors. The effect of Cyprus joining the EU in 2004 has been to inflate property prices and most agents and developers agree that they will start to rise further with the joining of the Eurozone in January 2008. Other Euro zone participants have since experienced a 16% price rise in the year prior to entry and many experts predict that Cyprus will be no exception.

With tourist figures to the island up 500% over the past five years, excellent air links are already in place to welcome Cyprus’ throngs of visitors and property purchasers. Paphos’ own international airport serves the town well and currently receives more than 120 flights from the UK each week. Meanwhile, airport expansion is underway and more low cost carriers are gradually being introduced – all great news for tourism in Cyprus.

Visitors are attracted to the beautiful sandy or small shingle beaches of Paphos, the best one being at Coral Bay and 320 days of sunshine per year mean plenty of sunbathing and a strong inflow of tourists to support Paphos’ year round buy-to-let market. The superb glistening waters at Akamas Peninsula offer excellent swimming, boating and diving opportunities, while a spectacular sunset here will remain a treasured, lasting memory. The temperate climate in Paphos is deigned to be the best on the island. Due to the hills lying behind Paphos, in summer the area doesn’t get as hot as in other parts of Cyprus, while in winter it is one of the warmest places on the island and you can usually swim well into November with temperatures averaging 23°C.

Finally, do remember the island’s British based legal and banking systems, which mean an abundance of English speaking lawyers and bankers attracting some of the more cautious of British purchasers. Simple property buying and borrowing procedures akin to those back home and efficient land registry systems make the entire investment process easily manageable. This attracts a continual flow of English speaking buyers to the island, all seeking a solid, hassle-free investment or a dream home in the sun.