Only 1.8% of advertised two- and three-bedroom apartments in Limassol fall within a €256,000 budget modelled on two median wages, according to Cyprus Property News.
According to Cyprus Property News, a new study by Ask Wire shows a sharp gap between property prices and household purchasing power in Cyprus. The researchers compared asking prices advertised on Bazaraki in early October with median wage data from the Statistical Service, analysing 25,550 active sale listings, of which 17,532 were two- or three-bedroom homes. The model household has two workers on the estimated median wage, two dependent children, no other loans and a 3.24% interest rate. Its gross monthly income is about €4,503 and net income €3,988. If 25% of net income goes on mortgage payments (about €997 a month), the maximum purchase price on a 25-year mortgage is €255,995, with a 20% deposit of about €51,199 before other purchase costs. The 25% share is an assumption of the study, not a Central Bank limit or a guarantee of mortgage approval. On that budget, just 1.8% of two- and three-bedroom apartments in Limassol were affordable: 111 of 4,294 two-bedroom listings and only 7 of 2,376 three-bedroom ones. Elsewhere the shares were far higher: Nicosia 59.6%, Famagusta 58.6%, Larnaca 48.1% and Paphos 9.6%. Houses were harder to afford: among three-bedroom houses, 65 of 480 listings in Nicosia, 17 of 993 in Paphos and 16 of 1,279 in Limassol fit the budget. Larnaca had the largest number of affordable two-bedroom apartments (1,097). If the household has only €40,000 left after purchase costs and an emergency reserve, its total budget drops to €200,000. The authors stress that wage figures are estimates and the household profiles hypothetical. The study does not calculate how many families would qualify for a mortgage, and advertised prices do not confirm final sale prices or availability.