Cyprus can best resolve its current housing difficulties by actively boosting the supply of available properties rather than introducing restrictive market regulations, according to a written briefing by Polys Kourousides.
Kourousides, who heads the Interior Portfolio of the Government Project Monitoring Council and serves as a special advisor on housing policy, identified access to affordable housing as one of the country’s most critical contemporary social and economic priorities. He emphasized that helping young people and couples secure affordable homes requires structured, long term planning focused on the root causes of the housing shortage.
A Positive Framework: Boosting the Housing Stock
Rather than adjusting existing market mechanisms, Kourousides advocates for policies that naturally lower housing costs by expanding the overall inventory of homes.
To achieve this, he proposes several constructive, growth oriented measures:
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Streamlined Administration: Accelerating bureaucratic licensing procedures to get building projects underway faster.
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Development Incentives: Providing clear financial and planning incentives to encourage new residential construction and renovations.
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Public Private Synergy: Utilizing state owned land specifically to develop new affordable housing communities.
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Targeted Support: Strengthening focused state housing programs and removing existing disincentives that hold back real estate investment.
Maintaining a Balanced Rental Market
The housing advisor cautioned against proposals such as rent-increase ceilings, suggesting that restrictive caps can inadvertently lead to less favorable conditions for those seeking a home.
Without interventionist limits, property owners are more likely to keep their homes on the long-term rental market rather than selling them off or converting them into short-term holiday rentals. Keeping the market open and predictable ensures:
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Greater Availability: Landlords remain motivated to rent out properties long-term, maintaining a wider selection for tenants.
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Property Maintenance: Stable returns encourage ongoing investment in building maintenance and renovations.
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Economic Stability: A predictable regulatory environment supports steady investment in the wider economy.
Ultimately, Kourousides concluded that housing policy should focus on practical, supply-side solutions that deliver tangible results, ensuring that every young person in Cyprus has access to a quality home.
Source: Stockwatch.com.cy