Cyprus is enjoying a record-breaking year for tourism, reinforcing its position as one of the Mediterranean’s most attractive investment destinations. With millions of annual visitors and rising demand for short-term rentals, 2025 is shaping up to be a golden year for property investors — especially in Paphos, which now attracts over one-third of all tourists to Cyprus.

Record Tourism Growth in 2025

According to official data from the Cyprus Statistical Service (CYSTAT), visitor arrivals in 2025 are projected to exceed 4.2 million tourists, representing one of the highest levels in the island’s history.

Top visitor markets include:

United Kingdom – 35% of total arrivals

Germany – 10%

Poland & Eastern Europe – 12%

 Israel & Middle East – Rapidly expanding segment

Paphos leads the way, accounting for approximately 34% of all tourist arrivals in Cyprus — thanks to its international airport, world heritage sites, beaches, and growing luxury accommodation offerings.

The Short-Term Rental Boom

Cyprus’s booming tourism directly fuels the short-term rental property market. Investors purchasing apartments or villas for vacation rentals are achieving some of the highest returns in Europe.

Average ROI: 12%–17% annually (depending on property type & location)

Peak season occupancy: 80%–90% in tourist zones like Kato Paphos and Coral Bay

Off-season occupancy: 50%–60%, driven by digital nomads & long-term stays

High-quality new developments near beaches, marinas, and cultural attractions deliver the strongest performance in both income and capital appreciation.

Why Paphos Is the Investment Hotspot

Paphos consistently outperforms other regions in both tourism demand and real estate growth. Investors choose it for:

Proximity to Paphos International Airport (serving 2M+ passengers yearly)

Upcoming Paphos Marina project and coastal infrastructure upgrades

Strong short-term rental performance due to consistent year-round tourism

Diverse property options: from sea-view apartments to luxury villas

How Tourism Growth Benefits Property Owners

Rising tourism means steady rental income and strong capital growth for investors:

Continuous visitor demand = high occupancy and yield stability

Expanding air routes & repeat tourism = sustainable market growth

Flexible ownership: use it personally part of the year, rent the rest

Even during slower months, remote workers and winter visitors sustain bookings — especially in Paphos’s resort areas and near the old town.

Future Outlook: More Tourists, Higher Returns

The Deputy Ministry of Tourism targets 5 million annual visitors by 2030, focusing on sustainability, luxury hospitality, and off-season travel expansion.

This growing demand positions Cyprus — and Paphos in particular — as a leading European hub for tourism-driven real estate investments.

Final Thoughts

With tourist arrivals surpassing 4.2 million, Paphos hosting 34% of visitors, and rental ROI reaching up to 17%, 2025 offers one of the strongest investment climates in Cyprus’s history.

For investors seeking a safe EU market with high returns, Paphos real estate delivers both lifestyle and profit.