Saving enough money for a down payment is only the first step toward buying your own home. Even after receiving the keys, property-related expenses continue, so when assessing housing affordability it is important to consider not only house and apartment prices, but also the relationship between housing costs and household incomes.
According to the BestBrokers study “From 9 Months to 216 Years: How Long It Takes to Save for a Home Deposit Around the World”, the average gross monthly income in Cyprus is 2,603 euros, while the average cost of a medium-sized home is estimated at around 305,296 euros. With a 20% down payment, a buyer would need approximately 61,059 euros.
According to the study’s methodology, saving this amount would require 23 months of work. However, this calculation is theoretical: it assumes that a person can save their entire gross monthly income, which is practically impossible in real life. In practice, the saving period would be significantly longer after taking into account rent, food, transport, utility bills and other mandatory expenses.
For comparison, in Greece the average gross monthly income is 1,828 euros, while the average price of a medium-sized home is around 261,846 euros. A 20% down payment amounts to 52,369 euros, which corresponds to 29 months of work under the study’s methodology.
Cyprus Looks Better in Terms of Housing Cost Burden
Despite high property prices, Cyprus occupies a relatively favorable position in terms of housing cost burden. In cities, only 2.6% of residents spend more than 40% of their income on housing. The same figure is reported for Croatia.
For comparison, this figure reaches 26.9% in Greece, 25.3% in Denmark, 18.2% in Switzerland, 17.5% in Norway and 16.2% in the United Kingdom. In the Netherlands, the share stands at 8.8%, in France at 9%, and in Luxembourg at 11.6%.
Thus, high property prices alone do not necessarily mean the highest financial burden. Wage levels, the structure of household expenses and the share of people who already own their homes also play an important role. More recent Eurostat data also confirm the relatively low housing cost burden in Cyprus: in 2024, the indicator for the country stood at 2.1%, compared with an EU average of 8.2%.
Why Buying a Home in Cyprus Is Still Difficult
The low share of households spending more than 40% of their income on housing does not mean that property ownership is affordable for everyone. It is particularly difficult for those entering the market for the first time and who do not have enough savings for a down payment. The situation is further complicated by rising prices.
According to the Statistical Service of Cyprus, the House Price Index increased by 3.4% year-on-year in the first quarter of 2026 and by 1.6% compared with the fourth quarter of 2025. The Central Bank of Cyprus also notes the continued rise in residential property prices amid strong demand, particularly from foreign buyers, higher construction costs and a gradual expansion of supply.
In addition, in 2025 the homeownership rate in Cyprus stood at 69.2%, slightly above the EU average of 68.5%. The high proportion of homeowners is one of the reasons for the relatively low housing cost burden: a significant share of the population is not directly dependent on rental costs or changes in mortgage interest rates.
The Main Problem Is Access to a First Home Purchase
Overall, the situation in Cyprus is mixed. On the one hand, the country is among the European states with the lowest housing cost burden. On the other hand, anyone who wants to buy their first apartment or house today needs to save a significant amount of money before even applying for a mortgage. The difference is particularly noticeable between those who already own property and younger buyers who are only trying to enter the market.
Housing prices in Cyprus continue to rise, while rental costs also remain high in certain cities. Limassol, for example, retains its status as the most expensive rental market on the island. Housing affordability should therefore be assessed not only by looking at the average property price, but also by considering the relationship between the cost of an apartment, income, the down payment and monthly expenses. It is this combination that determines how realistic it is for an ordinary family to buy its own home in Cyprus today.