The fear is real. Homeownership, once a milestone of adulthood, now feels more like a myth to many. Prices have surged, wages have stagnated, and headlines keep talking about foreign investors, limited supply, and impossible mortgage terms. It’s no wonder that would-be buyers are anxious and hesitant.

But the numbers tell a more layered story, especially in Cyprus.

While global housing markets struggle to recover from pandemic-era distortions, Cyprus continues to hold one of Europe’s highest homeownership rates at 69%. That’s not a statistic for the history books; it’s proof that homeownership in Cyprus, while harder than before, is still on the table.

Why the Fear Feels Justified

Affordability is the top concern. The median price of a home in the U.S. reached nearly $390,000 in 2023, marking the slowest year for sales in decades. Global inflation and economic uncertainty only add to the anxiety.

Cyprus property prices aren't immune. Apartment prices rose by 12.7% last year. Houses? Up 5.7%. Larnaca saw an 11% jump, Limassol 10.7%, and Famagusta 9.5%. For many, these numbers read like a lock on the door of ownership.

It’s not just about price. A 25-year mortgage feels more like a gamble than a guarantee, especially for younger generations who value mobility.

And then there’s timing. After watching prices rocket during the pandemic, many are convinced they’ll buy just before a crash or miss the right moment entirely.

What the Data Doesn’t Say Loud Enough

Markets shift. Spring 2025 is different. In the US, inventory is up, 27.5% more listings year-on-year.More homes on the market means more choice, stronger negotiating power, and less urgency to overpay.

Mortgage rates are sliding. Price growth is slowing. Homes aren’t cheap, but the acceleration has eased. And that’s a window.

Cyprus is continuing to build - 541 apartment buildings were under construction in 2023 - most notably in Limassol and Nicosia. That supply is going to hit the market.

The Misconceptions That Keep Buyers Frozen

“Housing will never be affordable again.”
Inventory growth, tempered price increases, and falling borrowing costs paint a different picture.

“There’s no inventory.”
That’s outdated. Spring 2025 is seeing the most active listings since before the pandemic.

“Foreign buyers have priced out locals.”
Foreigners bought 44% of homes in 2023, but that figure has held steady since 2018. Domestic buyers still account for more than half of transactions.

“The market is inaccessible to average buyers.”
Cyprus has urban centers, coastal destinations, and rural communities, each with distinct price points. A buyer locked out of Limassol may still find opportunity in Larnaca or inland areas with larger plots at lower costs.

What Smart Buyers Are Doing Now

They’re planning. Financial preparation is key: factoring in not just the price, but taxes and legal costs. First-time buyer incentives still help.

They’re thinking strategically. Apartments in developing neighborhoods may offer better long-term value than homes in saturated zones. New builds provide additional supply to ease pressure.

They’re asking the right questions. Does the property qualify for tax exemptions? Is it eligible for support? Can it lead to residency benefits?

There are valid reasons to feel fear, but paralysis is a choice. The market doesn’t need to be perfect. Homeownership in Cyprus is still happening. People are reading the data, filtering the noise, and finding properties that fit.

The question isn’t if you’ll buy. The question is when you’ll act. www.mresidence.com

Until Next Time,

Nikolas Michalias