Housing scarcity in Cyprus is intensifying, creating a growing crisis that strains residents’ access to affordable homes. With demand outpacing supply, competition among tenants has increased, complicating the search for suitable housing.

According to a recent study by Perprice consulting company, rental prices for standard apartments generally rose from August to October 2025 across Cyprus’s main cities. Paphos recorded the highest increase at 4.8 per cent, while Nicosia and Larnaca saw modest growth, and Limassol registered a slight decrease of 1.9 per cent.

The government acknowledges these housing challenges. At the March 2025 land development conference, Interior Minister Constantinos Ioannou explained that geopolitical tensions and inflation had pushed up construction costs, restricting supply. Rising interest rates and strong demand from foreign workers have further reduced housing access for local residents.

To tackle this, plans were introduced to remove apartment-type quotas in tourist zones and reduce apartment sizes by 15 per cent to increase units. A new housing scheme targeting mixed-use developments in commercial areas was also introduced to help meet workers’ needs and ease urban demand.

However, the full impact of these measures is expected to be gradual, as housing pressures persist.

Affordable options remain scarce, and competition can be fierce when properties are available. With few vacancies, landlords have become more selective, sometimes raising rent prices and tenant requirements. This has led to more thorough tenant screening, with some landlords conducting personal interviews that inquire about income and family status, though approaches vary widely.

Speaking to the Cyprus Mail, landlord Lampros Loizou says his only requirement is proof of employment and that he prefers individual tenants over couples or families. He previously banned dogs due to noise concerns but now allows small dogs in his new property, joking, “I’d rather have a small dog than a child.”

Dora, whose rental property adjoins her home, also verifies tenants’ employment but places particular emphasis on compatibility. She prefers tenants she can communicate with easily, ideally couples with children. 

Like many landlords, Dora acknowledged that pets, especially larger ones, can be a potential issue for tenancy, she told the Cyprus Mail.

Since July, when her previous tenants left, she has turned down several requests from male international students, worried they might damage the property, though she is more open to female students.

Among the more unusual reasons for rejecting a tenant, she recalled a case where a prospective tenant revealed her husband was imprisoned nearby. This, combined with her reluctance to disclose details about her own employment, gave Dora pause.

From the tenants’ perspective, experiences vary widely. Some have been asked only about employment, while others faced pet restrictions or were simply not the landlord’s preferred choice. Screening practices differ by landlord, location and property type.

Overall, Cyprus’s rental market has not yet reached the intrusive screening levels seen in countries like the Netherlands or the UK, where tenants may be asked for character references or personal histories.

However, with competition rising and supply shrinking, such pressures may soon grow.

The core issue then, is not unreasonable landlord criteria per se, but the convergence of rising price and landlord preferences, which together further narrow the already constrained market options.