The real success of efforts to tackle Cyprus’ housing problem is measured by the people, families and young adults who are ultimately able to find a home.
That was the point made recently by Yiannis Misirlis, President of the Cyprus Property Developers Association, during a television interview. His observation perhaps captures the heart of the housing debate better than anything else.
A housing policy does not succeed simply because more measures are announced or incentives introduced. It succeeds when more households can find suitable homes to buy or rent at a price they can afford.
To achieve that, increasing the housing supply in Cyprus is essential.
More homes mean more choice
Housing is a complex issue shaped by many factors. One of the most important is the imbalance between demand and the number of homes available.
Where demand is high but homes are scarce, people have fewer options and prices come under greater pressure. Increasing the housing supply is therefore a key part of improving access to homes.
Cyprus needs more homes on the market, including homes that meet the needs of modern households in terms of size, location and cost.
From planning permission to completed home
To increase the supply of homes, we need to look at the main obstacles a development faces: from planning permission and the start of construction to completion and delivery to the buyer or tenant.
Delays in the approval process are among the biggest obstacles. They raise costs, push back schedules and slow the arrival of new homes on the market. Procedures need to be faster, simpler and, above all, more predictable. That means clear timeframes, consistent application of the rules and better coordination between the authorities involved.
The Nicosia District Local Government Organisation has reported positive results in processing applications, as have other district organisations. The challenge now is to build on this progress and apply good practice more consistently. Applicants should have a clear and realistic idea of how long a decision will take.
For property developers, certainty is as important as speed. It helps them plan, limits additional costs and makes it easier to deliver projects on time.
But planning permission alone does not put a new home on the market. Once a project is approved, it must also be possible to build it without further major delays. A sufficient workforce is crucial.
A shortage of technical and skilled workers affects the pace of construction, increases costs and limits the sector’s ability to deliver more homes. Cyprus cannot substantially expand its housing stock without the people and skills needed to build it.
That is why the housing debate must link planning approvals to the construction sector’s capacity to deliver. The aim is not simply to issue more permits. Those permits must become projects, completed homes and, ultimately, more choice for the public.
Making better use of existing homes
New construction is only part of the answer. Cyprus can also increase supply by making better use of the homes it already has.
Vacant, ageing or underused properties could return to the market through well-designed incentives for renovation and energy upgrades. This could provide additional homes more quickly, particularly in areas where demand is high and availability is limited.
The government’s “Renovate – Rent” scheme is a positive step. It could be strengthened to bring more unused properties back into use and increase the number of homes available for long-term rent.
Cyprus should also create the right conditions for more homes built specifically for long-term rental, including through Build-to-Rent models. Expanding the rental market is just as important as increasing the number of homes for sale.
An effective housing strategy should draw on every available source of supply: new developments, the return of existing homes to the market and more long-term rental homes. The goal should be to give people more genuine options, whether they want to buy or need a stable, affordable rental home.
Turning policy into results
Tackling the housing problem effectively requires a broad mix of measures. These include support for vulnerable groups, incentives to build affordable homes, cooperation between the public and private sectors, and better use of existing homes.
The Ministry of Interior’s housing policy is moving in a positive direction, with measures intended to increase both supply and access to housing. The key is to give these policies sufficient reach, apply them consistently and deliver measurable results.
Every measure should contribute to a clear goal: increasing the number of homes genuinely available on the market and widening the choices open to the public.
That is the challenge for the years ahead. Cyprus must move from plans, permits and figures to homes that are completed and handed over—and, above all, to people who are able to secure housing.
That is where the success of any housing policy should be measured: in the number of additional, practical housing options it creates.
By Mersina Isidorou, General Manager of the Cyprus Property Developers Association
Translated from an article published by the CPDA
