A study by Ask Wire revealed significant differences in the affordability of apartments and houses across five districts in the free part of Cyprus. Analysts compared the prices of properties listed for sale on the Bazaraki platform in early October with the purchasing power of local households. Data from the Cyprus Statistical Service on median employee wages was used for the calculations.
The study is based on a model of a family consisting of two working adults with two children. It is assumed that the family has no other loans, and the estimated mortgage interest rate is 3.24%.
Under these conditions:
The family’s total gross income is approximately 4,503 euros per month.
Net monthly income is €3,988.
The mortgage payment accounts for 25% of net income, or 997 euros per month.
With a 25-year loan term, the maximum property value is 255,995 euros.
To purchase such a property, a 20% down payment is required—€51,199. Additional transaction costs are not included in this amount.
Important: The 25% income cap on monthly payments is an assumption used by Ask Wire analysts; it is not a mandatory requirement of the Central Bank of Cyprus, nor does it guarantee loan approval.
Where in Cyprus Are There More Affordable Apartments?
For this study, analysts reviewed 25,550 active real estate listings on Bazaraki after conducting additional data verification. Of these, 17,532 properties were two- or three-bedroom apartments and houses. The results show that housing affordability varies significantly by area:
Nicosia—about 60% of the 2- and 3-bedroom apartments listed for sale fall within a budget of up to 256,000 euros.
Famagusta—58.6%. Together with Nicosia, this is the most affordable market within the selected financial model.
Larnaca—48.1% of apartments meet the set budget.
Paphos—only 9.6%.
Limassol—only 1.8%.
The gap is particularly noticeable when comparing the absolute number of properties. In Limassol, out of 4,294 listings for 2-bedroom apartments, only 111 fit a family’s budget. Among 2,376 3-bedroom apartments, there were only 7 such options.
In Nicosia, the situation is significantly better: out of 1,226 two-bedroom apartments, 869 are affordable for buyers with the income level in question. At the same time, the largest absolute number of affordable 2-bedroom apartments was found in Larnaca—1,097 properties.
The selection is even smaller when it comes to single-family homes. In Nicosia, out of 480 homes listed for sale, only 65 fit within a budget of up to 256,000 euros. In Paphos, there are only 17 such properties, and in Limassol, 16.
Pavlos Loizou, head of Ask Wire, highlights three main conclusions from the study. First, Limassol’s problem lies not so much in a lack of supply as in the gap between prices and workers’ incomes. Second, Nicosia offers the most favorable balance between cost and housing affordability, while Larnaca leads in the number of affordable two-bedroom apartments. Third, buying a single-family home—especially a three-bedroom one—is becoming increasingly out of reach for a family with an average income.
The down payment is another obstacle
Even if a family’s income allows them to make mortgage payments, not everyone is able to save the necessary amount for a down payment. According to Ask Wire’s estimates, if a family has only 40,000 euros in disposable income after covering related expenses and maintaining a financial reserve, its budget for purchasing real estate is automatically reduced to 200,000 euros.
Ownership of other properties or assets could theoretically help increase equity, but this does not mean the owner has the necessary amount readily available.
For banks, developers, and government agencies, the study’s findings signal the need for more targeted solutions. When assessing housing affordability, it is important to consider not only the cost of the property but also the down payment, monthly payments, and actual household incomes in each district of Cyprus.
It is also worth noting that mortgage terms may differ from those used in the study. Banks evaluate applicants’ income and expenses, existing financial obligations, and their ability to repay the loan over the entire term. Therefore, the estimated budget of 255,995 euros does not mean that a family will necessarily be able to obtain a mortgage for exactly that amount.