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No dream home for Millennials

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Cyprus’ Millennials and Generation Z struggle to make the dream of owning their home, forced to rent a roof over their head, in line with the European trend, argue real estate agents.

According to a European Central Bank research report, a sizeable decrease in homeownership among younger households has been recorded this year.

As the ECB notes, in southern Europe, property ownership rates by people in their mid to late 30s (millennials) have fallen by over 10 percentage points compared to those born between 1965-1979.

In recent years, the demand for rent in Cyprus has increased, especially for apartments, due to the financial inability of young families to put together the required deposit to buy a residential property.

Marinos Kineyirou, chair of the Real Estate Agents Council, argued that young people in Cyprus are putting off leaving their parent’s homes, a trend reinforced by income inequality and job insecurity.

“Many young households prefer not to risk such a large investment, which is illiquid, driven by high house prices and low incomes,” said Kineyirou.

Commenting on ECB’s findings that so-called Millennials and Generation Z choose to rent to have fewer financial commitments and greater comfort for moving, Kineyirou stressed that younger people still dream of buying their own property.

But limited availability of suitable housing units for sale has driven the rental market.

Asked to comment on the profile of those choosing to rent, Kineyirou included students in the equation.

“During this period, there is strong interest in accommodation for students who have secured a place in higher educational institutions and whose priority is to secure accommodation near the academic institutions they have chosen to study.”

Due to the ongoing war, the number of potential tenants has also increased due to foreign nationals arriving in Cyprus recently from countries such as Ukraine, Russia, and Belarus.

Therefore, the increased demand leads to higher rental prices in some areas.

Kineyirou notes that in Limassol, renting a one-bedroom apartment ranges from €800 – €900 per month, a two-bedroom apartment is around €1300/month and a three-bedroom apartment around €1700 – €1800.

In Nicosia, a one-bedroom apartment goes for anything between €500 – €600, the average price for a two-bedroom apartment is around €800 – €900 per month, and for a three-bedroom apartment around €900 – 1000.

In Larnaca and Paphos, prices are lower.

In Larnaca, the price for a one-bedroom apartment varies between €400 – €500, the average price for a two-bedroom apartment is around €500 – €600, and for a three-bedroom apartment, its €700 – €800.

Rental prices in Paphos are roughly the same, with prices for a one-bedroom apartment ranging between €350 – €450, the average price for a two-room apartment is €500 – €600, and a three-bedroom apartment costs approximately €700 – €800 per month.