Saving for a home deposit in Cyprus is becoming increasingly difficult as property prices rise faster than household savings. A new analysis by BestBrokers estimates that a typical 108-square-metre home costs around €305,296. A 20% deposit would therefore require about €61,059.
Average Salary Does Not Tell The Full Story
Based on an average gross monthly income of €2,603, the deposit equals roughly 23 months of salary. In reality, however, buyers must cover rent, food, transport and other expenses.
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Cyprus’ median monthly salary was €1,968 in 2025, while one in three employees earned less than €1,500 in the first quarter of 2026. At the median salary, the deposit represents around 31 months of gross income.
Someone earning €1,500 would need more than 40 months of pay. Saving 20% of the median salary each month would take almost 13 years to reach €61,059, assuming property prices did not rise.
Mortgage Costs Add To The Pressure
A 20% deposit is broadly consistent with current mortgage conditions. Bank of Cyprus’ first-home loan offers financing of up to 80%. For a €305,296 property, the mortgage would be about €244,237. At an average new mortgage rate of 3.28% in June, a 30-year loan would cost approximately €1,067 per month if the rate remained unchanged.
That would absorb more than half of the median gross salary before taxes and living expenses.
Location And Property Type Matter
New-build prices vary significantly across Cyprus. During the first half of 2026, the average transaction reached €319,618, while the median was €232,500. A 20% deposit based on median new-build prices would be around €37,000 in Nicosia, €38,000 in Larnaca, €45,000 in Famagusta, €60,600 in Limassol and €72,000 in Paphos.
Apartments remain more affordable than houses, with a median new-build price of €215,000 compared with €365,000 for houses. That means deposits of roughly €43,000 and €73,000 respectively.
Prices Rise Faster Than Savings
Apartment prices increased 10.8% year-on-year in the first quarter of 2026, according to Central Bank of Cyprus data, while house prices rose 3%.
At the same time, average household savings rates stood at just 1.42% in June, leaving savers struggling to keep up with property prices. Government support has also attracted strong demand. A housing scheme offering grants of up to €50,000 to people aged 41 and under received 1,018 applications for its initial 400 places. An additional €11 million was later approved for another 277 applicants.
Cyprus Remains Mid-Ranked In Europe
Despite the affordability challenges, Cyprus compares relatively well with several European markets. A 20% deposit represents around 23 months of gross income, compared with 24 months in the UK, Malta and Spain, 29 in Greece and 30 in Portugal.
Cyprus and Croatia also recorded one of Europe’s lowest housing-cost overburden rates, at 2.6% of urban residents spending at least 40% of disposable income on housing, according to Eurostat.
