A new report about housing in Europe shows a surprising situation in Cyprus. On one hand, people in Cyprus have the biggest homes in the European Union. On the other hand, there is a serious shortage of houses to buy or rent, and prices are going up. This is creating a difficult problem for many people.
The report says Cyprus is special because homes are very spacious there. In fact, 70% of Cypriots live in homes that are bigger than they need. This is the highest number in the EU. Very few people live in overcrowded homes. Most people live in houses, not apartments, and each person has about two rooms on average.
But the market is now under a lot of pressure. Even though about 70-74% of people own their home, there are not enough houses for everyone who wants one. This is especially a problem in the rental market. From August to October 2025, rent prices increased in most big cities. For example, prices in Paphos went up by 4.8%.
The government knows this is a problem. The Interior Minister, Constantinos Ioannou, says there are several reasons. Construction costs are higher because of world problems and inflation. Also, high interest rates and strong demand from foreign workers make houses too expensive for many locals.
So, the main issue is not that there are no houses. The problem is that many people cannot find or afford a home. The government now needs to find solutions to build more houses and control the high prices.