The ratio of housing prices to household income in Cyprus in 2025 remained below its long-term average. This is according to Eurostat data published on Monday, November 9.
According to the statistics, the index in Cyprus stood at 91.61 points, compared to 91.63 points in 2024. The base value of the index—100 points—corresponds to the long-term average calculated since 2000.
This means that the ratio of real estate prices to household income has not yet returned to the levels seen during previous periods of heightened market pressure. However, this result does not mean that housing in Cyprus has become affordable for most residents or that apartment prices are low relative to wages.
What the Eurostat Data Shows
The Eurostat indicator reflects how real estate prices have changed relative to household income over time. If the index is below 100, it means that the ratio is below the country’s own long-term average. However, it does not indicate how many years a family would need to save to buy an apartment.
In Cyprus, the index remained below 100 throughout the entire period covered by the statistics. Its values changed as follows:
2016 — 99.71 points;
2017 — 99.36 points;
2018 — 93.13 points;
2019 — 92.30 points;
2020 — 95.38 points;
2021 — 89.59 points;
2022 — 90.10 points;
2023 — 92.03 points;
2024 — 91.63 points;
2025 — 91.61 points.
Thus, the index has remained virtually unchanged over the past three years.
It is important to note, however, that the index reflects trends in prices and incomes, not the actual cost of apartments. Even if salaries are rising at roughly the same rate as real estate prices, buyers still face higher prices and the need to have significant savings up front.
Why It’s Still Difficult to Buy an Apartment in Cyprus
A study by the analytics firm Ask Wire highlights the gap between statistical indicators and the actual situation in the real estate market. According to its data, only 1.8% of the two- and three-bedroom apartments listed for sale in Limassol were within the budget of a family with an average income. The estimated cost of such housing was not supposed to exceed 256,000 euros.
The study covered 25,550 current real estate listings in government-controlled areas of Cyprus. Of these, 17,532 listings were for two- or three-bedroom apartments and houses.
For the calculations, experts modeled a family consisting of two working adults and two children. It was assumed that both adults earned the national average salary.
The family’s total monthly income before taxes was estimated at approximately 4,503 euros, and after taxes, at 3,988 euros. The model assumed that the family could allocate 25% of its net income toward mortgage payments. Under these conditions, the monthly payment would be approximately 997 euros.
The calculation also factored in a mortgage interest rate of 3.24% per annum and a loan term of 25 years. With these parameters, the family could afford to purchase a property worth up to 255,995 euros.
However, purchasing such a property would require a down payment of 51,199 euros—20% of the property’s value. Additionally, the buyer would have to cover the associated transaction costs.
The study’s results revealed significant differences between regions in Cyprus. The share of two- and three-bedroom apartments that fit within the family’s estimated budget was as follows:
Nicosia—59.6%;
the free areas of Famagusta — 58.6%;
Larnaca — 48.1%;
Paphos — 9.6%;
Limassol — 1.8%.
Thus, Limassol proved to be the most challenging region for purchasing a family apartment within the budget under consideration. In Nicosia, by contrast, the selection of properties within the desired price range was significantly broader.
It should be noted that Ask Wire’s calculations are based on a model family budget and prices listed in sales listings. They do not guarantee mortgage approval for a specific buyer and do not take into account the final cost of the transaction.
Cyprus Compared to Other EU Countries
Eurostat data allows us to compare the situation in Cyprus with that of other EU countries. Across the European Union as a whole, the ratio of housing prices to income in 2025 was 6.8% higher than in 2015. This means that over the course of a decade, real estate prices in the EU rose, on average, faster than household incomes.
The ratio increased in 17 EU countries and decreased in the remaining 10. The largest increases were recorded in:
Portugal — 60.8%;
the Netherlands — 34.3%;
Hungary — 26.5%;
Czech Republic — 25.8%;
Spain — 24.5%.
The most significant decline occurred in Romania—42.8%. Next are Finland, with a decrease of 25.2%, and Bulgaria, with a decrease of 16.2%.
These figures show how much the ratio of prices to incomes has changed in each country. They do not allow for a direct comparison of the absolute cost of housing or for the assertion that an apartment in one country is cheaper than in another.
Another Eurostat indicator is the standardized index relative to the long-term average. In the EU, it reached two notable peaks: in 2007, before the global financial crisis, it was 7.9% above the average, and in 2022, it was 7.4% above the average.
The index then declined. In 2014, it was 6.4% below the long-term average. After renewed growth in 2023 and 2024, the index rose again and stood at 100.03 points in 2025—just 0.03% above the average.
In the eurozone in 2025, the index reached 99.02 points, compared with 96.80 points a year earlier. Among individual EU countries, the highest values in 2025 were recorded in Portugal—136.97 points, Austria—115.6, and Luxembourg—113.11. The lowest figure was in Romania—47.01 points. Next were Bulgaria with 64.04 points and Finland with 76.74 points.
Eurostat uses the standardized index as one of several supplementary indicators within the EU’s macroeconomic imbalances procedure. It helps identify potential risks in real estate markets.