The “should I buy or rent?” debate isn’t new- but each year it weighs more heavily on Cypriot households. Rising property prices, steady rent increases and high borrowing costs have left citizens with limited options, balancing between the need for a permanent home and the inability to afford one.
The housing market is gradually turning into an unattainable dream, while renting, instead of being a solution, often becomes a new source of stress. In this environment, Polys Kourousides and Yiannis Telonis try to shed light on why housing continues to be one of the most pressing issues in modern Cypriot reality.
“Home ownership risks becoming a privilege for the few”
Polys Kourousides, President of the Association of Property Valuers
Under current market conditions, anyone considering buying or renting a home must assess far more than just numbers. High borrowing costs, rising sale prices and escalating rents point to a market without a cohesive housing policy. Housing, he stresses, is a critical factor of social and economic stability.
Affordable housing remains scarce, with investment concentrated in high-return sectors at the expense of lower and middle-income households. Strategic intervention and targeted tools are needed — including the development of green neighbourhoods that could both increase affordable supply and reduce household expenses through energy-efficient design.
Without technically sound measures and measurable goals, the buy or rent debate in Cyprus will remain purely theoretical, he warns.
In the long term, ownership remains financially preferable to renting, provided stable income and financing access exist. Owning a home builds security and long-term value, whereas renting offers none — yet many Cypriots simply can’t afford ownership.
According to Kourousides, owning a home for seven to ten years usually makes buying more advantageous than renting. However, personal circumstances and market realities play a crucial role. If the purchase price exceeds 20 times the annual rent, it’s wiser to rent; if it’s under 15 times, buying makes more sense.
“Unbearable cost of buying without family help”
Yiannis Telonis, Economist
Telonis explains that while Cyprus’s economy is on a positive trajectory, housing affordability continues to deteriorate. Rising land and construction costs — worsened by supply chain disruptions during the pandemic — have made it almost impossible for young couples to buy a home without family support.
This has led to a cultural shift, with more people renting instead of owning, bringing Cyprus closer to the European average for ownership versus renting. However, unlike other EU countries, Cyprus lacks a strong public housing sector, meaning rent levels are dictated almost entirely by private landlords and market demand.
The growth of Airbnb and the arrival of foreign professionals have further increased pressure on the rental market. For most couples, the buy or rent debate in Cyprus depends on factors such as income stability, family-owned land, or available savings — and neither option comes without risk.
Buyers face fluctuating interest rates and loan repayments; tenants risk eviction or rising rents. In uncertain times, Telonis says, the safest path depends on each person’s financial resilience and willingness to take on long-term risk.
He predicts that renting will become more common and higher-quality over the next few years, while state and EU-backed housing programmes will increasingly focus on providing affordable homes for young families and vulnerable groups.
Also read: House prices, the largest Real Estate study conducted in Cyprus
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