The rapid growth, the tall buildings, and the arrival of foreign companies that have transferred their workload and employees to Cyprus in recent years have greatly diversified the supply and demand for real estate, with the disadvantage being the Cypriots, for whom finding a property to rent or buy is becoming a difficult puzzle.
The average salary in Cyprus cannot meet the lower bank installment required to buy an apartment or a house, or even worse the 30% to 40% equity required, let alone the rents whose increasing trend exceeds the total of the average salary.
The result is that the younger generation, especially young couples from middle or low-income groups, start their lives with the biggest obstacle, that of housing. In addition to the increased demand, which pushes up prices and makes them unaffordable, we also have the additional increase in the cost of construction materials and their transportation, which drives prices up. High-interest rates, punctuality, and housing costs make life even more difficult for those trying to save money.
The wage data is disproportionate to the rent prices, let alone the installments that the average worker is required to pay. One in three employees does not exceed the tax-free income of 19,500 thousand euros. According to the estimators, if the money spent on rent exceeds 1/3 of the total salary, then it is difficult to afford it and the lowest price at which one can be oriented to rent is 500 – 600 euros. Moreover, if families have students and the budget has to bear additional rent for the student in another city, even if he/she is staying in a dormitory, then it seems impossible to be able to meet all the expenses that will be incurred if the parents belong to the middle or low-income bracket.
The need to pay a deposit to financial institutions, equal to about 1/3 of the total value of the property, field, apartment, or house, removes even more people from the possibility of securing a loan, as it is difficult to raise the initial amount, especially for young couples and single persons.
Even in the case of the implementation of the Social Housing Plan through the Cyprus Land Development Corporation (KOAG), the terms and conditions in banks, which are no different from other procedures, leave unclaimed apartments offered for purchase to beneficiaries with low-income criteria. That is why there is a shift to renting in this case. The efforts of the Board of Directors of the KOAG, to change this obligation, are underway and may set a precedent for the rest of the people who do not have part or all of the money of the value of the property and open the way to acquire housing.
