Apartments vs Villas in Paphos: Which Is the Better Investment?
Paphos has become one of Cyprus’s fastest-growing property markets, attracting both international investors and local buyers. According to the Central Bank of Cyprus, property prices in Paphos rose by 13.4% year-on-year in 2024, the highest increase among all major Cypriot cities. Houses appreciated by 14.7%, while apartment prices climbed 12.1% over the same period.
This strong performance highlights Paphos’s strength within the Cypriot property market, supported by steady foreign demand, a resilient local economy, and ongoing tourism growth. The city’s blend of Mediterranean charm, modern infrastructure, and investment stability continues to attract those seeking both lifestyle and long-term returns.
The Paphos Property Market
Paphos offers a rare combination of lifestyle appeal and financial potential. The high appreciation recorded in recent quarters reflects strong demand, particularly in coastal and well‑connected locations. Analysts and market participants expect that, the market will experience a period of 2-3 years of increased capital appreciation, while a more moderate growth of around 6% per annum follow, especially for well‑located new‑builds and off‑plan purchases.
The city’s vibrant rental market adds to its appeal: apartments and villas alike enjoy healthy occupancy rates thanks to year-round tourism and an expanding expatriate community. For buyers investing at least €300,000, Cyprus also offers Permanent Residency eligibility, further enhancing the investment case.
Apartments vs Villas: Investment Returns
In Paphos, apartments generally offer strong rental yields and lower entry costs, making them well suited for investors seeking cashflow and flexibility. Villas, conversely, offer higher absolute value and prestige, with stronger long‑term lifestyle appeal and potential capital appreciation, albeit with slightly lower rental yield percentages.
In terms of the rental Return On Investment (ROI), based on the latest data, the average long-term rental yield is in the range of 5 to 6% for villas and 5-6.5% for apartments. Short-term rentals tend to give higher yields in the range of 5.5 to 7% for villas, and 6-7.5% for apartments. The above numbers depend heavily on the location of each asset, since different areas generate different returns.
It is important to note that, even for the case of short-term rentals, income can be passive for investors, since there are several reputable management companies active in the market.
At Domenica Group, we can assist the clients by making the necessary introductions and inclusions in the property, to effectively deliver a “key-ready” product ready to be rented out.
Overall, Ffor investors focused on steady cashflow and liquidity, apartments are often the preferred route due to their affordability and consistent rental demand. For those prioritising space, prestige and long‐term value, villas offer larger plots, private amenities and strong lifestyle credentials. Buying off‐plan with a reputable developer adds further upside by securing pre‐construction pricing and benefiting from built‑in appreciation as the project progresses.
Lifestyle and Living Experience
Apartments are perfect for those seeking a modern, low-maintenance lifestyle close to the sea or city centre. Many developments include shared pools, gardens, and roof terraces, creating community while keeping upkeep simple. Being near restaurants, shops, and beaches adds convenience, making apartments ideal for retirees, young professionals, or investors who rent their units short-term.
Villas appeal to buyers who value space, privacy, and a resort-like atmosphere. With private pools, gardens, and room for children or pets, villas are ideal for full-time living or luxury holiday homes. Many offer panoramic sea or hillside views, giving a sense of exclusivity and freedom that apartments can’t match.
Costs and Maintenance
Apartments typically have shared maintenance fees that cover communal areas and amenities, keeping personal maintenance minimal. Villas have no community fees but require independent care of pools, gardens, and utilities, giving owners more freedom but also higher running costs.
Because apartments are generally smaller and sit on smaller plots, the associated transfer fees and other upfront costs are usually lower than for villas, making them more accessible for first-time buyers or investors.
Resale and Market Liquidity
Apartments tend to resell more easily because they attract a wider pool of buyers. Villas, while more exclusive, often take longer to sell but can achieve higher prices in prime locations. Both property types in Paphos are showing strong long-term value retention, especially when built by established developers with quality construction in desirable locations.
Matching Property to Your Goals
Investors seeking rental income and steady cash flow often prefer apartments, thanks to their affordability and strong demand. Retirees and young professionals also value apartments for their convenience and low-maintenance lifestyle.
Families, lifestyle buyers, and high-net-worth individuals often gravitate toward villas, seeking larger spaces, private outdoor areas, and long-term lifestyle benefits. Villas are ideal for those prioritising prestige, privacy, and the Mediterranean dream of a personal pool or garden.
Why Choose Domenica Group
With over 60 years of experience and more than 500 completed projects, Domenica Group is one of Paphos’s most established developers. Known for quality construction, timely delivery, and strong post-sale support, all projects are self-financed, ensuring reliability and stability throughout the build process. Domenica offers a range of apartments and villas in prime locations, including:
- Eniko Mare (Kissonerga) – Modern 1- and 2-bedroom apartments (63-95sq.m.) for exclusive seaside living, with premium amenities, including a gym, lobby, rood terrace and swimming pool. Prices from €250k.
- Konia Aura (Konia) - Contemporary 1-, 2-, and 3-bedroom apartments, (73-107sq.m.) in the peaceful hills of Konia Village, with premium facilities including an overflow swimming pool and unobstructed sea views. Units are priced €235-330k.
- La Bella (Koloni, Yeroskipou) - Coastal apartments (studios to 2-bedroom, 42-94sq.m.) with large communal pool, roof terraces, and gardens. Prices from €210k (1-bedroom) / €315k (2-bedroom).
- Mare Villas (Kato Paphos) - 37 detached and semi-detached 3-bedroom villas (193-245sq.m.), just 200m from the shore, with private pools and roof gardens. Four (4) units left at €540k.
- Artemis Villas (Kato Paphos) - 23 luxurious 3-bedroom villas (280-360sq.m.) on generous plots, featuring private swimming pools and a private rooftop gardens. Three (3) units left at €750k.
- Lyra (Kissonerga) - Two-storey 3-bedroom houses (132-208sq.m.) with private swimming pools, built-in BBQ bench, solar system, A/C system. Available houses priced €450-€460k.
Whether you’re seeking a high-yield apartment or a luxury villa, Domenica’s experienced team can guide you to the right property for your investment or lifestyle goals, providing peace of mind from purchase to completion.
Take the Next Step
Ready to take the next step? Discover our projects at DomenicaGroup.com or contact our sales specialists to schedule a consultation.
Your perfect Paphos property awaits. Let Domenica Group guide you to a smart, secure investment in Cyprus.