Greece or Cyprus, where does your salary go further when renting or buying a home?

Renting a two-bedroom flat in Limassol can swallow as much as 91 per cent of an average salary, emphasising the growing cost of housing in Cyprus and the widening gap with Greece, where rents and property prices remain considerably lower. Nevertheless, cheaper housing does not necessarily mean greater affordability. With average salaries in Cyprus around 54 per cent higher than in Greece, the cost of renting or buying tells a different story once earnings are taken into account. For Cypriot families paying for student accommodation in Athens or Thessaloniki, Greece can offer substantial savings. For those living and working there, however, rising rents and lower wages are making even modest homes increasingly difficult to afford. Competition for cheaper homes intensifies in Greece New figures from Greek property platform Spitogatos show that tenants and buyers are increasingly concentrating their searches on properties at the lower end of the market, where competition is particularly strong. In Athens’ northern suburbs, rental properties advertised for less than €600 a month attracted an average of 21.1 direct expressions of interest and almost 282 searches per property during the first eight months of 2026. A similar picture emerged in the Dodecanese, where properties within the same price range received 22.4 expressions of interest on average. Meanwhile, prospective buyers across Greece focused much of their attention on homes priced at up to €250,000, according to the latest property market figures. The pressure is also pushing rents higher. Figures from REMAX Greece, covering 124 areas, showed that rents agreed through its network increased by an average of 3.8 per cent in 2026, including 4.3 per cent in Attica, 3 per cent in Thessaloniki and 4 per cent elsewhere. Some of the largest increases were recorded away from the traditionally expensive neighbourhoods. Nea Iraklitsa in Kavala recorded a rise of 16.7 per cent, followed by Petralona in Athens at 15.6 per cent. Rents in Kypseli and Thermi increased by 14.3 per cent. By comparison, rents in Kolonaki and Thessaloniki’s old waterfront were unchanged, although both remained among the most expensive areas, at around €14 per square metre, alongside Santorini. Athens’ western suburbs were considerably cheaper, at €7.40 per square metre, compared with €11.10 in the southern suburbs and €10.30 in the north. However, the west also recorded Attica’s largest average rental increase, at 5.7 per cent, according to REMAX Greece. What €650, €900 or €2,100 can rent in Cyprus and Greece The difference between the two countries becomes particularly clear when comparing apartments of similar sizes. According to Global Property Guide, the median advertised monthly rent for a two-bedroom apartment was approximately €650 in Thessaloniki and €880 in central Athens. In Cyprus, the corresponding figures were €900 in Nicosia, €1,400 in Paphos and €2,100 in Limassol. That means a two-bedroom apartment in Limassol could cost more than three times as much as one in Thessaloniki and more than twice the price of one in central Athens. The figures are based on advertised properties, rather than existing rental agreements, with the Greek samples updated in May 2026 and the Cyprus figures in September. Within Athens, prices varied considerably. In Patisia, the median asking rent for a two-bedroom apartment was €660, rising to €740 in Kypseli and €850 in Pangrati. In the more expensive Kolonaki-Lycabettus area, however, the figure reached €1,750. Limassol presented a different picture, with even areas outside the city centre commanding substantial rents. September listings analysed by Index.cy put the median two-bedroom asking rent at €1,700 in Zakaki, €1,750 in Ypsonas and €2,000 in both Kato Polemidia and Mesa Geitonia. In Ayios Athanasios, the figure rose to €2,150. For anyone considering buying instead the advertised apartment prices in those areas ranged from €285,000 in Ypsonas to €320,000 in Kato Polemidia and €367,000 in Zakaki. In Mesa Geitonia and Ayios Athanasios, the median asking price reached €450,000. Nicosia offered cheaper alternatives, although affordability varied considerably between neighbourhoods. In Strovolos, the median asking rent stood at €700 for a one-bedroom apartment and €1,300 for a two-bedroom property. The corresponding purchase prices were €180,000 and €300,000. Latsia was more accessible to buyers with smaller budgets, with 84 per cent of apartments advertised below €250,000, compared with just 20 per cent in Strovolos. The salary question changes the comparison Lower rents do not necessarily mean housing is more affordable. According to Eurostat, Cyprus’ average annual full-time adjusted salary stood at €27,611 in 2024, compared with €17,954 in Greece. In other words, average earnings in Cyprus were approximately 54 per cent higher. When those salaries are compared with 2026 advertised rents, the difference becomes particularly striking. A two-bedroom apartment in Thessaloniki, costing €650 a month, would absorb approximately 43 per cent of one average Greek salary. In Nicosia, a €900 apartment would take around 39 per cent of one average Cypriot salary. The proportion rises to 61 per cent in Paphos and reaches 91 per cent in Limassol. These calculations use gross annual salaries from 2024 and asking rents from 2026. They do not account for income tax, differences in household earnings or disposable income. Nevertheless, they show why comparing rents alone can be misleading. A worker earning an average Greek salary may find a €650 apartment in Thessaloniki harder to afford than a worker on an average Cypriot salary would find a €900 apartment in Nicosia. For a Cypriot family paying for a child’s accommodation in Greece, however, the lower rents can still represent a considerable saving. Buying is cheaper in Greece, but saving for a deposit is another matter The gap between the two countries is also substantial when it comes to buying a home. Global Property Guide figures placed the advertised price of a two-bedroom apartment at approximately €183,000 in Thessaloniki and €205,000 in central Athens. In comparison, the figure stood at €235,000 in Nicosia and €445,000 in Limassol. However, finding a cheaper property is only part of the problem. Buyers also need to save enough for a deposit while continuing to meet their rent and other living expenses. An August analysis of home deposits, based on BestBrokers research, estimated that a 20 per cent down payment on an average-sized home in Cyprus would amount to €61,059. That was equivalent to 23 months of average gross salary, assuming the entire amount was saved. Using the 2025 median monthly salary of €1,968, the same deposit would require 31 months of full earnings. For someone saving 20 per cent of that median salary each month, accumulating the deposit would take almost 13 years, provided property prices remain unchanged. The figures are particularly relevant given that one in three employees in Cyprus earned less than €1,500 a month during the first quarter of 2026. Mortgage costs also differ between the two countries. According to their respective central banks, the average interest rate on new housing loans carrying a floating rate or an initial fixed period of up to one year stood at 4.16 per cent in Cyprus in August, compared with 3.39 per cent in Greece. Despite the affordability difficulties, mortgage lending in Greece has increased. IMS Financial Consulting reported that housing loan disbursements reached €1.835 billion between January and August 2026, an annual increase of 34.9 per cent. Lending through the country’s My Home programmes rose by 54.6 per cent. Foreign buyers and empty homes add to the pressure Demand from overseas buyers is another factor shaping Greece’s housing market. Spitogatos reported that international interest in Greek properties was 60.3 per cent higher than in 2020, representing 20.3 per cent of demand recorded on its platform. The strongest interest came from the US, Germany and Britain. Buyers were also looking beyond Athens and Thessaloniki, with Halkidiki, the Cyclades, Kavala, Messinia and the Dodecanese attracting attention. However, these figures refer to online searches and enquiries rather than completed property purchases. Housing prices have also increased much faster than household incomes. Research by the International Monetary Fund (IMF) found that Greek house prices had risen by approximately 85 per cent from their 2016 low, compared with a 47 per cent increase in disposable income per person. At the same time, the IMF estimated that 12 to 13 per cent of Greece’s housing stock was vacant. Research by the Greek Parliamentary Budget Office showed that, between 2011 and 2021, the number of dwellings available to rent fell by 10 per cent, while properties listed for sale declined by 33 per cent. That happened despite a modest increase in the overall number of homes. In Cyprus, concerns have also been raised about the impact of short-term tourist rentals on the availability of housing for residents. In July 2024, Real Estate Agents Registration Council chairman Marinos Kineyirou and Stek director general Chrisemily Psilogeni warned that “the expansion of short-term accommodation was reducing the supply of homes for long-term tenants and contributing to higher rents.” However, a short-term accommodation operator disputed that assessment, pointing to wider conditions in the property market. Students face rising rents on both sides For families supporting university students, accommodation has become one of the largest expenses. In Cyprus, the problem is particularly acute in Limassol. As early as 2022, private studios in the city were costing around €600 to €650 a month, while the Cyprus University of Technology, known as Tepak, was arranging cheaper accommodation with host families for €200. Certain university-managed rooms at Apollonia were also available for €250. By July 2024, however, students were reporting private studios advertised for more than €1,000 a month. The difficulty has since spread beyond Limassol. In August 2026, Kineyirou said one-bedroom apartments suitable for students were costing €600 to €900 in Nicosia, Larnaca and Paphos, while rents in Limassol could reach €1,500. He partly attributed the shortage to the growing number of students, which had reached 57,889 in the 2023-24 academic year, an increase of 9.4 per cent. The previous year, Cyprus Property Valuers Association president Polys Kourousides had also warned that studying at a private university in Cyprus was becoming almost as expensive as studying abroad. “We are in favour of developing universities, but it must be ensured that there is sufficient student housing,” he said. He proposed requiring universities to provide accommodation for at least 5 to 10 per cent of their students. Greece is facing similar difficulties, although rents remain generally lower. According to Spitogatos Insights, advertised student rents increased by 5.3 per cent year on year in the second quarter of 2026. In Athens municipality, the average asking rent was €13.30 per square metre, meaning a 40-square-metre apartment would cost approximately €532 a month. In Kolonaki-Lycabettus, the equivalent monthly rent would be €668. A similar apartment in Thessaloniki’s 40 Ekklisies-Evangelistria neighbourhood would cost around €520. Student rents also exceeded €13 per square metre in Corfu, Rhodes and Rethymno. Back in Limassol, Index.cy’s September listings showed how expensive even smaller apartments had become. Median asking rents for one-bedroom properties stood at €1,200 in Neapolis, €1,350 in the historical centre and €1,450 in Mesa Geitonia. In Germasogeia and Potamos Germasogeia, they reached €1,800 a month. Those figures cover the wider one-bedroom rental market rather than accommodation specifically marketed to students, but they help explain the difficulties facing families unable to secure university housing. University halls offer relief, but places remain limited With private rents rising, securing a place in university accommodation can make a substantial financial difference. At the University of Cyprus, the 208 available dormitory rooms were allocated according to socioeconomic criteria, with rents of approximately €150 a month including utilities, according to student welfare head Kleanthis Pissarides. Plans for another 900 rooms were progressing, with the first 500 expected within three years. At Tepak, the accommodation policy for the 2026-27 academic year includes 150 rooms at Verengaria in Kato Polemidia, priced at €350 a month, together with another 200 rooms at Apollonia at the same subsidised rate. Verengaria is expected to reach its full capacity of 500 rooms in September 2027. Of those, 300 rooms will cost €350 a month and the remaining 200 will be priced at €550. In Greece, Aristotle University of Thessaloniki provides accommodation for approximately 1,500 students, with eligible students from low-income or large families receiving places free of charge. There are also differences in the financial support available to students renting privately. Greece provides an annual student housing allowance of €1,500, increasing to €2,000 for students sharing accommodation. Outside Attica and the Thessaloniki regional unit, the allowance increases to €2,000, or €2,500 for students sharing. Cypriot students studying in Greece may also qualify as EU nationals, depending on their income and other eligibility requirements. Meanwhile, Tepak offers eligible undergraduate students renting privately in Limassol or Paphos assistance of up to €250 a month for ten months, equivalent to €2,500 for the 2026-27 academic year. Housing schemes promise more homes, but relief could take years Both governments have introduced measures aimed at increasing the supply of affordable housing, including incentives to bring vacant properties back into use. In Cyprus, the Renovate-Rent programme offers grants of up to €20,000 for one-bedroom homes, €30,000 for two-bedroom properties and €40,000 for three-bedroom homes. In return, owners must rent the renovated properties at affordable rates. However, the scheme has struggled to attract applicants. An examination in August found that it had received just 84 applications, including rejected submissions, against a target of bringing 1,000 homes onto the market over two years. Greece has a similar programme, covering 60 per cent of eligible renovation expenses of up to €13,500. The maximum grant is €8,100, with owners required to rent the renovated property for three years. Larger housing projects are also planned in both countries. In Cyprus, Interior Minister Constantinos Ioannou said in September that “government incentive and build-to-rent schemes were expected to deliver more than 4,100 homes within three years.” Of those, 1,142 would be available for affordable purchase or rent. Another scheme involving state-owned land was progressing towards the construction of 460 homes at reduced rents. Greece, meanwhile, has announced a €2 billion My Home III programme, expected to begin in early 2027. The scheme will expand eligibility to buyers aged up to 55 and increase the maximum loan to €230,000. The Greek government has also announced €226 million to renovate 15 student residence buildings, serving approximately 5,600 students. For households already struggling to pay rent, however, most of these measures will take time to make a difference.