Cyprus has an interesting property market right now. Houses are cheap and big compared to other European countries. However, shops are becoming more expensive to rent. This is because many businesses want them and there are not many new ones being built.
For over ten years, house prices in Cyprus have stayed the same. This is different from most of Europe, where prices have gone up. Because of this, people in Cyprus can afford their homes easily. They spend only 11% of their money on housing. This is much less than the European Union average of 19%. Also, very few people spend more than 40% of their income on housing. Cyprus also has the least crowded homes in the EU. Only 2% of people live in small homes.
However, while houses are affordable, shop rents are rising. Shops in good shopping areas can cost up to €70 each month to rent per square metre. This is a big jump from before the COVID-19 pandemic. Shops in Limassol cost about €39 per square metre on average. However, the best shops can cost €94 per square metre. Nicosia and Larnaca are also seeing higher prices.
Many big shops and fast-food companies want to rent these spaces. Therefore, rents are going up. It also takes a long time to get permission to build new shopping centres. Some people think new rules have made this problem worse. The government plans to build 500 new homes because young people find it hard to afford houses. However, experts say they need good planning, not just building many homes quickly.