Soaring real estate prices and higher mortgage interest rates have forced many residents of Cyprus to abandon the dream of buying their own homes.
The most affected are young married couples, who now can not afford to buy real estate in the island state. Yes, and rental prices wish to leave the best. And wages are standing still.
In particular, according to the Statistical Service of Cyprus, the minimum monthly salary in Cyprus is set at 1 thousand euros. The average gross monthly earnings of Cypriots rose to €2,693 in the fourth quarter of 2023 from €2,535 a year earlier, up 6.2%. However, more than half of the island's employees bring home an average of €1.5k.
At the same time, renting a one-bedroom apartment in Limassol costs at least 850 euros a month, for an apartment with two bedrooms will have to give at least 1.3 thousand euros, and with three bedrooms - 1.7 thousand euros a month. In Nicosia, the cost of renting an apartment with one bedroom is from 550 to 650 euros, and an apartment with two bedrooms will cost a family at least 750 euros. For a three-bedroom will have to pay from 950 euros to 1.5 thousand euros.
In addition, do not forget that with the onset of the tourist season, apartment owners try to put their property on the short-term rental market. This increases their income, but leads to a shortage of housing on the long-term rental market.
It is worth noting that the situation of couples who are in search of property to buy or rent every month worsens, as the cost of building materials in Cyprus continues to rise rapidly, and the relocation of foreign companies is gaining activity. Demand reduces supply and consequently pushes prices up.
Many real estate experts are confident that if some preventive measures are not taken, it will have a detrimental effect on the economy of Cyprus.
By the way, a third of customers among young couples have already abandoned the idea of buying real estate because of the rising cost of housing in the country. They simply can no longer afford to buy a house. People who have been approved for loans have been forced to contact banks to ask for more money after construction costs increased. However, the vast majority of such requests have been denied.
Experts expressed the fear that the drop in demand will inevitably affect the construction industry, as developers will think once again whether it is worth starting a new project if ready-made properties are not sold out.