A new report from Eurostat shows a confusing situation in Cyprus. On one hand, people in Cyprus have the most spacious homes in the European Union. On the other hand, the country is facing a serious shortage of available housing and rising rents. This creates a difficult problem for many residents. The recent "Housing in Europe 2025" data reveals a country caught between its past successes and current pressures.
The report highlights the high quality of housing in Cyprus. A very high 70% of Cypriots live in homes that are under-occupied, meaning they have more rooms than they need. This is the highest rate in the EU, where the average is only 33%. Cyprus also has the lowest overcrowding rate in Europe, at just 2%. On average, each person in Cyprus has about two rooms, which is more than the EU average of 1.7 rooms. This is because most people, about 74%, live in houses rather than apartments.
However, behind this comfortable image, there is a troubled market. Even though about 70-74% of people own their homes, which is above the EU average, there is a big problem with renting. There are not enough homes for rent, and prices are going up. Recent data from Perprice, a consulting firm, shows that from August to October 2025, rents increased in most major cities. Paphos saw a sharp rise of 4.8%. Only Limassol had lower prices.
The government recognizes this strange situation, where homeowners have plenty of space but renters face scarcity. Interior Minister Constantinos Ioannou explained the reasons. He said that geopolitical tensions and inflation have made construction more expensive. He also noted that high interest rates and strong demand from foreign workers are pushing prices up, making it hard for locals to afford homes.
The core issue is not a simple lack of buildings. Instead, it is about who can access these homes and afford them. As the gap between homeowners and renters grows, the government is under pressure to find solutions. They must increase the supply of homes and manage the high demand, or the crisis will get worse for tenants and people trying to buy their first home.