Our View: Time for Cyprus to prioritise sustainable growth
Cost of living data for 2025 show that Limassol is by far the most expensive city in Cyprus. This is not something we did not know, but it is different when figures reinforce what may have been evident.
The survey, conducted by Numbeo, found that the monthly rent for a one-bedroom flat in the centre of Limassol was about €1,338 while a three-bedroom in the same area was in the region of €2,350; rent accounted for 32.2 per cent of monthly household income. Nicosia is the cheapest town for housing, with the monthly rent for a one-bedroom flat in the centre of town at €664. In Paphos, it is €922 and in Larnaca €862. The same applies to purchase prices, with Limassol charging about €4,500 per square metre and Nicosia €2,710 per square metre. In Paphos and Larnaca sales prices are in between the two.
Average wages follow the same pattern, with Limassol top of the league (€2,500), Paphos in second place (€1,900) and Larnaca and Nicosia well behind (€1,590 and €1,550 respectively). Eating out has similar cost differentials. We do not know how accurate these figures are – 737 entries might be too few – but they give the general trend. It is no coincidence for example that Limassol, with its thriving foreign businesses, would record the highest rents, highest salaries and highest restaurant prices. It is all the result of demand and supply. The concentrations of foreign businesses in the town explains the higher average wages and the exorbitant rents, shaped by high demand for housing.
The big danger is that Limassol may steadily become unaffordable to people on local wages – the high wages paid to foreign workers raise the town’s average. In fact, many Limassolians have moved out of town, to surrounding villages where rents are still affordable. This is the price of growth and prosperity, but it could be argued but there must be some measure. For example, the impression given by the government is that there are no limits to the number of foreign businesses, each with its workforce, that can move to Cyprus. But this policy has adverse consequences for the local population in terms of higher living costs.
This, combined with the official pursuit of record tourist arrivals every year, places a great strain on our resources. The desperate water situation has been made worse by the constantly rising population and the record numbers of tourists. In the summer, the EAC can just about produce enough electricity to cover the country’s needs, which is not an ideal situation as there is always the danger that something will go wrong.
This is why we should start prioritising sustainable growth and rational management of resources. Pursuing higher numbers of visitors and attracting more and more foreign businesses every year is not a sustainable growth model. We must adopt a more measured approach.