Cyprus is facing a housing challenge that goes beyond affordability, it’s now a question of social cohesion and economic stability.
According to Constanti Constantinos, President of the Cyprus Scientific and Technical Chamber (ETEK), rising housing costs affect not just vulnerable groups, but also middle-income families, young professionals, and working households.
Finding homes that are affordable, near work, and close to essential services is becoming increasingly difficult. Housing is no longer just a roof over one’s head; it’s a critical social asset and a cornerstone of a productive economy.
Not just a housing supply problem
The crisis isn’t only about not enough homes being built. There’s also a mismatch between what’s available and what people can afford. Much of the new housing stock fails to meet the income levels of households looking for homes. Energy efficiency, accessibility, and the growing number of smaller households also shape housing needs today.
ETEK stresses that success should not be measured simply by the number of new homes built, but by how well housing meets people’s needs.
Rental market under pressure
Despite some policy improvements, rents remain high, and market pressures are intense. Mr Constantinos highlights the lack of mechanisms to track, predict, and adjust housing policies in real-time. He calls for a Unified Housing Policy Authority to coordinate efforts, analyse trends, and propose corrective actions.
Making use of existing homes
One immediate solution is activating vacant or underused homes. With the right incentives, these units could ease pressure on the market quickly. Urban regeneration, converting empty commercial spaces into housing, and better use of large under-occupied homes are all practical steps. Safe co-living or downsizing options could also unlock significant housing potential.
Moving beyond “build-to-sell”
The current “build-to-sell” model is limiting. Mr Constantinos advocates for more build-to-rent developments, which could stabilise the rental market and prevent sharp rent increases. Regulation of short-term rentals is also essential, as these often remove long-term rental options from the market, further driving up costs.
Planning, taxation, and governance
ETEK suggests that affordable housing quotas in new local plans could be an effective tool if they include clear affordability definitions, timelines, and sustainability measures. Taxing idle land that hasn’t been developed after incentives have been exhausted could also bring unused property into productive use.
Affordable housing does not mean low quality
Affordability should never mean poor quality. Constanti Constantino emphasises maintaining high architectural standards and proposes design competitions for affordable rental units to ensure homes are both liveable and attractive.
The takeaway
Affordable housing in Cyprus cannot rely on a single measure. It requires a combination of tools, incentives, and regulations, along with better use of existing stock, urban regeneration, and support for rental housing. Only through this multi-pronged approach can Cyprus ensure housing that is accessible, sustainable, and socially cohesive.
(Translated and summarised from an article in StockWatch)
