Cypriots Excluded from Property Market
Cypriots increasingly face exclusion from the property market due to rising housing costs, including rents, construction costs, and high interest rates. This growing issue urgently requires government action. While the island’s real estate sector shows recovery signs, local affordability still struggles to keep pace. The arrival of high-tech and fintech companies in Cyprus is driving up rents, making it harder for locals to secure affordable homes. This problem is most severe in cities like Limassol and Nicosia, where housing demand far exceeds supply.
In Limassol, rents for one-bedroom apartments start at €850, leaving average-income families struggling to afford larger homes. Recent data shows that even though wages have risen, more than half of the workforce earns approximately €1,500 per month, while the minimum wage is just €1,000. Cheaper rental options are available in suburbs and smaller cities like Larnaca and Paphos, but prices there are also on the rise.
To address the housing shortage, the government has approved plans to build 800 affordable units over the next three years. Additionally, policies have been introduced to encourage housing development. However, financing remains an obstacle, as developers rely heavily on private investments while banks remain cautious, complicating efforts to construct affordable housing.
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For more information on housing issues in Cyprus, you can refer to this article on Stockwatch
