Paphos town and district has ended to be the least populated of the Cyprus districts.
Paphos properties for rent have increased over the years, when compared to how many were available per capita during the 1980’s, 1990's and 2000's.
During the late 1980’s and through the 1990’s a small number of property developers built properties for sale, some of which were marketed by foreign owners as holiday properties for let. Several hotels were built and the tourism market began to grow rapidly throughout Paphos.
Towards the end of the 1990’s Paphos had become a magnet for tourism and there was a huge spike in interest for properties by British clients; this demand created a catalyst for growth and expansion, it was further bolstered by Russian clients during the 2000's.
The influx of foreign investment led to many tourist type apartment complexes being built on spec, as well as villas which were primarily built to order.
A large percentage of buyers proceeded on the “Buy to Let” principal, some of which also borrowed money from local banks at relatively high interest rates. This was all well and good, so long as growth continued, indeed for those who bought towards the end of the 1990’s or early 2000’s enjoyed several years of rental income before the global economic downturn.
Rental prices were rising steeply across the board until approximately 2009 in all sectors and Paphos was enjoying unprecedented prosperity, this was partly due to the limited number of properties available for rent. By now many ordinary Cypriots had by now invested in properties, either built to sell or to rent.
The global economic downturn of 2009 onwards had serious consequences for many people who had proceeded on the “Buy to Let” basis, since tourism and visitors to Cyprus were in decline and many of them would struggle to continue financing their property purchase. Cypriots who had used savings or borrowed money to build properties for sale or rent were now also facing the prospect of having limited opportunities to sell or rent their properties.
As the global economic downturn continued many developers and owners realised that there was little chance of their properties being sold in the short term; as such they decided to offer their properties for rent. The consequences of an influx of rental properties adversely effected the Paphos rental market by driving down rental values until late 2014.
2015 showed signs of the sales property market recovering, (particularly for re-sale or completed properties).
2015 was a record year for tourism and visitors to Cyprus; the volume of property rentals was growing steadily.
Cyprus was re-establishing its reputation, particularly in the banking sector by formulating sustainable loan arrangements with its clients.
British clients in particular were enjoying a strong exchange rate for Sterling against the Euro, many choosing to re-locate to Paphos.
Europeans, Scandinavians, Russians and some Chinese clients were also showing increased activity and re-locating to Cyprus, having noticed an opportunity to get a bargain property for long term rent.
The continuing recovery of the Paphos property sales market will undoubtedly effect the Paphos rental market, as properties are sold the number of properties available for rent will return to normal levels.
Basic economics dictates: rental property values will start to rise as demand outstrips supply.
The current trend supports this notion, 2016 is showing that monthly rental and holiday let values are increasing.