Limassol continues to confidently hold its position as the most expensive location in the Cypriot real estate market, remaining the island’s hub of business, investment, and residential activity. The city has firmly established itself as the “heart of Cyprus’s economy,” but for local residents, renting or buying a home is becoming increasingly difficult.
According to analysts, the limited number of available properties continues to keep prices high, preventing the market from stabilizing. Despite ongoing construction, many new developments are aimed at investors rather than local families, further reducing the actual supply of apartments and houses.
Rental Prices at Their Peak — Housing at Luxury Rates
According to the latest report by Landbank Analytics, Limassol ranks first in Cyprus in terms of rental prices. Average monthly rents are:
- 1-bedroom apartment: €1,651
- 2-bedroom apartment: €2,574
- 3-bedroom apartment: €3,812
- 4-bedroom apartment: €7,224
- 5-bedroom apartment: up to €7,750
These prices place Limassol on par with major European capitals in terms of rental costs.
Experts note that the housing shortage creates a landlord-driven market where demand significantly exceeds supply. Meanwhile, demand remains consistently high among both foreign investors and local residents, especially in areas with developed infrastructure and proximity to the sea.
Why the Market Isn’t Cooling — and What Could Change
One of the key factors preventing price stabilization is the insufficient availability of new affordable housing. Most new projects are designed for sale through investment schemes, which does not increase the actual stock of rental properties.
In contrast to Nicosia and Larnaca, where social and municipal housing projects are actively expanding, Limassol currently has fewer such initiatives. This makes the expansion of the city’s housing stock particularly important for stabilizing the market.
One effective solution widely used in Europe and the U.S. is the Build-to-Rent model — constructing housing specifically for rental purposes. This approach creates a stable supply of units and helps regulate prices. In Cyprus, the government is already developing urban planning incentives and Build-to-Rent programs aimed at increasing affordable housing and reducing rental pressure.
Government Initiatives and Market Stabilization Prospects
According to recent statements from the Cyprus Ministry of Interior, new projects under the state housing program will soon be launched to develop affordable homes for both rent and purchase. These initiatives are part of the government’s broader strategy to address the housing crisis, which is particularly severe in Limassol.
Economists note that if construction volumes increase and new units are allocated wisely, the market could start stabilizing as early as 2026. This would ease rental pressure and help restore balance between supply and demand.
Limassol — A City of Opportunities, But Not for Everyone
Limassol remains a magnet for investors and a center of international business. The city is growing rapidly, with new business centers, infrastructure projects, and luxury residential complexes being developed. However, this rapid growth has a downside — housing is becoming increasingly inaccessible for many Cypriots.
For the market to regain stability, Cyprus needs a large-scale housing strategy that unites the efforts of the government, developers, and private investors. Only then can Limassol maintain its status as the country’s leading economic center while still offering housing to everyone who wants to live and work there.