This is the final part of an extensive overview of the Cyprus regions. Let's have a look at promising Paphos, green Polis and mountainous Troodos.
For a general overview of the economy and a comparison of the regions of Cyprus, see the first part of the article, an overview of Nicosia, Ayia Napa, Larnaca and Limassol is in the second one.
Paphos
Paphos is a city on the western coast of Cyprus, the historical and natural center of the island. The sunsets in Paphos are so beautiful that they can be included in the UNESCO World Heritage List. According to one legend, it was the place where the goddess of love Aphrodite was born.
Paphos has the second international airport of Cyprus, which makes it possible to quickly get to any country.
The city has a huge potential for development. The cost of real estate is 2 times lower than in Limassol, but there already are permits for high-rise buildings and a tender for the construction of the largest marina on the island is underway. Specialists expect a stable rise in real estate prices for 5 years.
In 2019, the reconstruction of the old city was completed, new restaurants and shops opened and the streets have a cozy European look. It turned into the city for vacations mainly of wealthy families, spending about 170 euros per person a day. The biggest demand is for boutique hotels and apart-hotels, which bring 10-11% ROI.
The first Cyprus innovation institute —Pafos Innovation Institute —was opened in Paphos and became the representative office of the best Israel innovative university. It is the first institution of higher education in Cyprus to teach entrepreneurship and business innovation. They started their MBA program in entrepreneurship and innovation and professional courses.
Paphos is an excellent choice for business. Life and operating costs here are 30-40% lower than in Limassol, so IT companies from Limassol and from abroad are actively moving here. The first innovation hub in Cyprus will be built in the city, and in the future Paphos will become a large IT cluster.
Paphos is currently consolidating the intellectual elite of the island, which provides additional potential for the development of an international ecosystem of cooperation between entrepreneurs in the EU countries and outside Europe.
Pros
- Cheap real estate.
- Huge development potential.
- Developed tourist destination.
- Best balance of conditions for business, life and investment.
Cons
- No such developed community as in Limassol so far.
Investing in real estate
The most interesting objects for investment in Paphos:
- residential real estate;
- commercial real estate;
- tourist real estate, especially apart-hotels.
Return on investment:
- residential and commercial real estate — 4-12% per annum;
- Distress Property — up to 15-20%.
Investment budget - from € 200 thousand to € 15 million.
Polis (Argaka, Latchi)
Tourist resort on the northwest coast of Cyprus. The basis of life is agriculture, wineries and farms. This is the greenest and most beloved by the Cypriots part of the island. The region is surrounded by the Troodos mountain forest, next to the Akamas national park with the Baths of Aphrodite. It is a perfect place for a private, secluded getaway with stunning sea views.
Luxurious villas, fishing villages and comfortable beaches make the region attractive for luxury property investments.
The Ministry of Communications and Works, with the assistance of the Cyprus Ministry of Commerce, Industry & Tourism, has developed a plan to transform Polis into a premium tourism region of the island. They are going to attract international hotel operators and build a single seafront, which will be more than 50 kilometers long. The marina in Latchi is already under renovation.
Pros
- Great place to stay.
- Beautiful nature, authentic villages.
Cons
- Poor infrastructure.
- Suitable for investment and holiday, but not for a permanent stay.
Investing in real estate
The most interesting objects for investment in the region:
- agricultural land, which in the next 2 years will be re-registered as a tourist land, and its cost is going to increase 2-3 times in the next 5 years;
- tourist real estate, including hotels, apart-hotels, luxury villas;
- restaurants, shopping centers, bars.
Return on investment: 5-12% per annum.
Troodos mountain range
The Troodos mountain range is the main top of the island. The moderate continental climate makes this place a center for winter tourism. Historically the Cypriots lived mainly in the mountains, so Troodos keeps picturesque villages and religious centers.
Since 2017, the Government of Cyprus has adopted a new strategy aimed at the development of the mountainous regions of Cyprus. Land here is fairly cheap and the government supports businessmen who invest in Troodos development. Within 5 years, they expect a large number of hoteliers and the construction of resorts.
Pros
- Cheap land.
- Government support.
- Great development potential.
Cons
- Poor infrastructure.
- Suitable only for investment in the tourism industry.
- Not suitable for life.
Investing in real estate
The most interesting objects for investment in Troodos:
- hotels for renovation.
The SPM team takes over the renovated hotel management, return on investment: 5-12% per annum.
Rating of Cyprus regions by SPM.Estate
All Cyprus regions are good in their own way, but we managed to select the top 3 for each of the key parameters: life, business, tourism attractiveness, real estate value and return on investment.
Rating is quite subjective (for someone the sea is important for life, and for others cultural sights are vital), but allows you to quickly assess the regions and proceed to a detailed study of the most interesting ones.
Top 3 for life
- Larnaca is the transport center of Cyprus with a seaport, airport and large investments in infrastructure development.
- Limassol is a large seaside city with a developed service sector, cultural and nightlife, 40% of residents are Russian-speaking.
- Paphos is a seaside city with an airport, the first innovation university in Cyprus, full of cultural life and entertainment.
Top 3 for doing business
- Limassol is the business center of Cyprus with the maximum concentration of IT business and a developed community.
- Nicosia is the capital of the Republic of Cyprus, its administrative, financial and business center.
- Paphos - IT companies are actively moving to the city, as operating costs here are 30-40% lower than in Limassol. The first innovation hub in Cyprus will also be built here.
Top 3 in terms of tourist attraction
- Ayia Napa is a real tourist city, which receives about 1.5 million visitors every year. A lot of hotels and a new marina are currently under construction.
- Larnaca is a developed historical center, a terminal for international liners is under construction, in 2020 the city got € 1.2 billion for the reconstruction of coastal infrastructure.
- Paphos - wealthy tourists stay here, in 2019 the reconstruction of the old city was completed.
Top 3 for real estate and land value
- Troodos mountain range - inexpensive land, the government supports the development of the mountainous regions of Cyprus, therefore, a large number of hoteliers and the construction of resort complexes are expected within 5 years.
- Paphos - the city has a huge development potential, while the cost of real estate is 2 times lower than in Limassol.
- Polis (Argaka, Latchi) - due to the development of tourism in the region, in the next 2 years agricultural land will be re-registered as a tourist land, and its cost will increase 2-3 times in the next 5 years.
Top 3 in terms of return on investment
- Larnaca - 3-7% per annum on the lease of residential and commercial real estate, 30-70% on investments in Distress Property.
- Limassol - from 4% per annum on the lease of residential and commercial real estate, up to 70% on investments in Distress Property.
- Paphos - 4-12% per annum on the lease of residential and commercial real estate, up to 15-20% for investments in Distress Property.
Choosing a city for living and investing is a difficult task, but an interesting one. This choice depends on many factors that we tried to cover in the article. If you have any questions, you want to learn more about Cyprus, its regions, tax policy, investments or life on the island, please contact us. We will consult and help you choose the best investment strategy that will suit you and your family.
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