22.08.2022
Cypriot millennials and Generation Z are struggling to fulfill their dream of owning their own home, forced to rent a roof over their heads in line with the European trend, real estate agents say.
According to a research report from the European Central Bank, there has been a significant decline in homeownership among younger households this year.
In southern Europe, home ownership among people aged 30 to 30 (millennials) has fallen by more than 10 percentage points compared to those born between 1965 and 1979, the ECB notes.
In recent years, the demand for rentals in Cyprus has increased, especially for apartments, due to the financial inability of young families to raise the necessary collateral to purchase residential property.
Marinos Kineiro, chairman of the Board of Real Estate Agents, argues that young people in Cyprus are putting off leaving their parents’ home, a trend exacerbated by income inequality and job insecurity.
“Many young households choose not to risk such large investments that are illiquid due to high housing prices and low incomes,” Kineiro said.
Commenting on the ECB’s findings that so-called Millennials and Generation Z are choosing to rent to have less financial obligations and more comfort when moving, Kineirou stressed that young people still dream of buying their own property.
But the limited number of suitable housing units for sale has led to the development of a rental market.
Asked to comment on the profile of those who chose to rent, Kineiro included students in the equation.
“During this period, there is a lot of interest in accommodating students who have received a place in higher education and whose priority is to provide accommodation close to the educational institutions they have chosen to study.”
Due to the ongoing war, the number of potential tenants has also increased with foreign nationals who have recently arrived in Cyprus from countries such as Ukraine, Russia and Belarus.
Thus, increased demand leads to higher rental prices in some areas.
Kineiro notes that in Limassol, renting a one-bedroom apartment costs between 800 and 900 euros per month, two-bedroom apartments around 1,300 euros per month, and three-bedroom apartments between 1,700 and 1,800 euros.
In Nicosia, a one-bedroom apartment costs between 500 and 600 euros, the average price for a two-bedroom apartment is about 800-900 euros per month, and for a three-bedroom apartment, about 900-1000 euros.
In Larnaca and Paphos prices are lower.
In Larnaca, the price for a one-bedroom apartment ranges from 400-500 euros, the average price for a two-bedroom apartment is about 500-600 euros, and for a three-bedroom apartment – 700-800 euros.
Rental prices in Paphos are about the same: the price for a one-bedroom apartment ranges from 350-450 euros, the average price for a two-room apartment is 500-600 euros, and a three-bedroom apartment costs about €700-800 euros per month.
