According to a new global study by BestBrokers, the average annual salary in Cyprus (approximately €25,335) only covers 9.8% of the cost of a standard 100 m² apartment. Therefore, in terms of the ratio of income to housing costs, Cyprus's property market is one of the least affordable in Europe.
The analysis was based on Numbeo data on the average price per square metre of real estate in different countries around the world, experts explain. This data was supplemented with information on household income to determine how realistic it is for local residents to purchase their own homes.
The most affordable and unaffordable markets
The study covered 67 countries. South Africa topped the list for housing affordability, with annual income covering over 18% of the cost of an apartment. Second place went to the United States with 16.9%, while Finland took third place with 11.8%. Bahrain and Denmark were also among the affordable markets.
Meanwhile, Nepal, India and China were at the bottom of the ranking, with salaries so low that it could take more than 50 years to save up for a 100 m² flat.
Why is it difficult to buy a home in Cyprus?
Despite relatively stable housing prices, the situation in Cyprus is complicated by stagnant income levels. The average gross salary of €2,000 (before taxes) barely covers current expenses, leaving little opportunity for savings.
Meanwhile, the cost per square metre in Limassol, one of the most expensive cities on the island, exceeded €3,500 in 2025, while prices in Nicosia and Larnaca remained at €2,200–2,700.
According to the Central Bank of Cyprus, housing prices on the island have risen by almost 25% over the past three years, while salaries have increased by no more than 8%. This makes a mortgage virtually the only way to purchase real estate. However, even with interest rates falling to 3.2–3.5%, many families still struggle to obtain loans due to banks' high requirements.
The market is on the verge of overheating.
Experts warn that, if current trends continue, demand from the local population will decline, making the market even more dependent on foreign investors. This creates the risk of further price increases and a widening gap between income and the ability to buy one's own home.
According to analysts' forecasts, in order to stabilise the situation in the Cypriot property market, it is necessary to develop affordable housing programmes, stimulate the construction of economy-class properties, and review lending policies for young families and first-time buyers.