Cypriots Facing Exclusion from the Property Market

Cypriots are increasingly unable to afford housing due to skyrocketing rents and climbing construction and interest costs, necessitating urgent government action. Although the island’s real estate sector is recovering, local markets and affordability are lagging behind. High-tech and fintech companies moving to Cyprus are pushing up rental costs, affecting locals’ ability to find affordable housing, especially in cities like Limassol and Nicosia where demand outstrips supply.

In Limassol, rents for a one-bedroom start at €850, making it challenging for families earning the average salary to afford larger homes. Recent statistics indicate a rise in average wages, yet over half the workforce earns around €1,500, with the minimum wage at €1,000. Cheaper rental options exist in suburbs or less developed cities like Larnaca and Paphos but are also rising.

To address the housing shortage, the government has approved construction incentives to develop 800 affordable units within three years and introduced policies to boost housing development. However, financing challenges persist as developers depend on private investment due to cautious banking practices, complicating affordable housing efforts.

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