Today, over 2.9 billion people worldwide lack adequate or affordable housing. Of these, 1.1 billion live in slums and informal settlements, while more than 300 million are homeless. According to Ana Claudia Rossbach, the Executive Director of UN-Habitat, the situation is critical and undermines the dignity, safety, health and future of millions of people. This issue is exacerbated by rapid urbanisation, climate change, inequality and armed conflict.
Cyprus is a small island facing significant challenges.
In countries with limited territory, such as Cyprus, the problem is particularly acute. Limited land supply, dependence on imports and rising construction costs make affordable housing virtually unattainable. Climate risks add to the pressure: the island faces extreme heat, droughts and threats to its coastline.
Rental market: prices rise to historic highs
In 2025, the average monthly rent for an apartment in Cyprus was around €1,800, while renting a house cost over €3,200. Limassol is the most expensive city: the average rent for an apartment here exceeds €2,700, while luxury apartments by the sea can cost up to €45,000 per month. Prices are lower in Nicosia but remain high: one-bedroom apartments cost an average of €674; two-bedroom apartments, €996; and three-bedroom apartments, €1,319. In Paphos, the average rent is €1,193, while students can expect to pay as little as €150 per month for municipal housing, including utilities.
The impact of war and migration
According to the UN, the number of people who have left their homes due to war and conflict is expected to reach a record 123 million by the end of 2024. This includes 6.8 million Ukrainian refugees, 7.4 million Syrians and almost 2 million Gazans. In Africa, the number of internally displaced persons has tripled over the past 15 years, reaching 35 million. These migration flows are putting additional strain on cities and creating extra pressure on real estate markets.
Housing quality as an indicator of the future
Rossbach emphasised that decent housing is more than just a roof over one's head. It must be safe and affordable, and provide access to water, energy, transportation, and infrastructure. The availability of such housing is directly linked to levels of education, health, and employment, while its absence perpetuates poverty and social inequality.
The climate challenge and the price of housing
According to forecasts, a 2°C rise in global temperature will affect 2.7 billion people by 2050. More than 2,600 cities will be at risk of flooding due to rising sea levels. In the Mediterranean region, including Cyprus, changes are happening faster than the global average. Heat waves are intensifying, water shortages are increasing and housing costs are rising, fuelled by tourism and interest from foreign buyers.
What the UN is proposing
The organisation is insisting that housing policy be integrated into climate strategies, that affordable and energy-efficient neighbourhoods be developed, that green technologies be introduced, and that cooperative construction models be supported. Mozambique is cited as an example where post-conflict housing was built with the participation of local women, enabling them to gain new skills and income.