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Airbnb Growth And Paphos Popularity vs. Stagnation In The Occupied Areas

Recent data highlights contrasting trends in the Cypriot property market. While platforms like Airbnb are experiencing substantial growth, particularly in areas such as Paphos, the property market in the occupied areas remains stagnant. These dynamics reflect broader economic and geopolitical factors influencing real estate across the island.

Airbnb Growth: A Boon for Tourism and Local Economies

The popularity of Airbnb and similar short-term rental platforms has surged in Cyprus, providing a significant boost to the tourism sector. This growth is particularly evident in Paphos, a region renowned for its scenic beauty, historical sites, and vibrant cultural life.

Several factors contribute to the rise of Airbnb in Cyprus:

  1. Tourism Rebound: The recovery of the tourism sector post-pandemic has driven demand for short-term rentals. Tourists prefer the flexibility and cost-effectiveness of Airbnb accommodations, which often offer a more personalised experience compared to traditional hotels.
  2. Economic Opportunities: For property owners, renting out homes on platforms like Airbnb presents a lucrative opportunity. This has encouraged many to invest in properties specifically for short-term rentals, further fuelling the market.
  3. Regulatory Environment: The Cypriot government has implemented regulations to formalise and manage the short-term rental market. These regulations aim to ensure safety and quality standards while providing a framework for property owners to operate legally.

Paphos: A Hotspot for Property Investment

Paphos has emerged as a particularly attractive destination for property investors and tourists alike. The region’s unique blend of historical charm, modern amenities, and natural beauty makes it a preferred choice for short-term rentals.

In contrast to the booming property market in regions like Paphos, the occupied areas of Cyprus face stagnation.

Dubai Real Estate Prices Surge 26.5% In February 2025

Dubai’s real estate market is showing no signs of slowing down. February 2025 saw a remarkable 26.5% year-on-year rise in property prices, underscoring the city’s enduring appeal to investors. While growth slowed slightly in comparison to previous months, the ValuStrat Price Index still posted a solid 1.6% monthly increase, taking the index to 207.5 points. This was fueled by continued strong demand across both villas and apartments.

Villas remain the standout performers. Capital values surged by 30.8% compared to the same time last year, with notable growth seen in upscale areas like Jumeirah Islands, which saw a massive 42.3% increase, and Emirates Hills, which rose by 31.2%. Despite a dip in the pace of growth (down to 2% monthly from 2.7% in January), villa values remain a significant draw for investors. Freehold villas are now valued 57% above the previous market peak and 160% higher than post-pandemic levels.

The Apartment Market: Stability Amidst Steady Growth

Apartments, while showing more modest gains, still recorded an impressive 22.2% increase in annual growth. Monthly rises of 1.2% in February (slightly down from January’s 1.4%) were noted, with standout areas like The Greens (28.9%) and Palm Jumeirah (26.3%) leading the charge. Notably, apartments are still priced 9% below their peak but have recovered sharply, sitting 65% higher than the post-pandemic trough.

Though apartment price growth is less spectacular than villas, it’s clear that Dubai’s apartment market remains strong, with areas like the Dubailand Residence Complex and The Views reporting solid annual gains of around 25%. Meanwhile, international investors continue to flock to areas such as International City and Dubai Sports City, where growth was more modest but still steady.

Off-Plan Demand Hits New Heights

The off-plan property segment is becoming an increasingly crucial driver of Dubai’s real estate activity. February saw a dramatic 59.5% annual increase in off-plan sales, accounting for a whopping 70.8% of all transactions. High-demand locations like Jumeirah Village Circle, The Vally, and Damac Island City were among the most sought after, while Dubai Silicon Oasis saw a record number of off-plan homes traded.

On the other hand, ready homes are still a significant part of the market, with transactions up by 12.8% month-on-month and 9.8% year-on-year. February saw 31 high-value transactions above AED30 million, including prime properties in Dubai Hills Estate and Palm Jumeirah. Emirates Hills also broke records for the highest number of ready homes sold in a month, further solidifying its status as a luxury hotspot.

Dubai’s Unstoppable Market: Record Sales And Global Appeal

In terms of overall sales, February was a historic month. Property transactions hit $13.91 billion, a staggering 39.91% increase compared to the same month in 2024. With 16,099 transactions recorded, February 2025 ranks as one of the highest sales volumes on record. Over the past five years, the value of real estate sales in Dubai has skyrocketed, jumping by an eye-popping 449% from AED9.3 billion in 2020 to AED36.5 billion in 2024.

This meteoric rise is a clear sign that the Dubai real estate market is not only resilient but expanding at an unprecedented pace, with both local and international buyers continuing to seek investment opportunities in the emirate’s thriving sector. The future looks equally promising as demand shows no signs of waning.

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