The leader of the opposition party Disy, Annita Demetriou, emphasized the need for a comprehensive approach to tackling the shortage of affordable housing during a press conference on Monday. Meanwhile, the government has pledged to introduce more initiatives aimed at helping young people enter the housing market.
Demetriou pointed out that while government efforts are moving in the right direction, they have been fragmented and insufficient to solve the ongoing issue. She highlighted the difficulties faced by young people and couples in securing affordable housing, whether for rent or purchase.
“Young individuals and couples struggle not only with high housing costs but also with obtaining loans, as current interest rates are steep,” Demetriou noted. “In addition, they must have stable, well-paying jobs to repay any loan.”
She explained that a combination of factors is contributing to the housing supply imbalance. Demand is being driven by foreign nationals, yet supply is not keeping pace. The rise in construction costs further exacerbates the problem, while bureaucratic delays in issuing building permits slow development. Furthermore, developers often focus on projects for affluent clients.
To address these issues, Demetriou shared several proposals from her party. One key suggestion was to streamline the process of issuing town planning and building permits by local authorities. She recommended that, if necessary, local governments should hire staff from the private sector to expedite these approvals.
Demetriou also suggested revising government schemes that aim to increase housing supply. Though these schemes offer incentives, such as permitting larger building areas, they also have restrictions. She called for reducing the minimum land plot sizes eligible for these schemes to allow broader participation.
She advocated for updating local zoning regulations to allow more residential construction and proposed increasing the buildable area for young couples who want to add floors to existing family homes.
For student housing, Disy recommended that the government boost funding for the University of Cyprus and the Technical University of Cyprus to address the growing demand for student accommodation.
Additionally, the party proposed that land reclamation, which has been debated for years, could unlock underutilized land for construction. Demetriou also called for expanding the role of the Cyprus Land Development Corporation (Koag) to include renting housing units. She suggested that Koag be granted state land to build properties that could be sold or rented below market rates.
Disy also recommended altering income tax policies for households where one income earner falls below the tax threshold, to provide more financial relief.
In response, the government reaffirmed its commitment to addressing the issue of affordable housing. Under-secretary to the president Irini Piki, speaking on a radio program, mentioned that the administration is working towards “more permanent solutions” to improve current housing initiatives. Piki also hinted at the upcoming launch of two new affordable housing schemes for young couples, set to be introduced on October 30.
Source: Cyprus Mail