The real estate market is prohibitively tight

There is a housing problem in Cyprus as young couples cannot afford to buy a home due to soaring prices and supply is rapidly dwindling due to thousands of people moving to the island.

President Nikos Christodoulides recently called it "an unprecedented housing crisis that mainly affects the younger generations." "The very high cost of building a house and the difficulty in obtaining financing have closed the opportunity for many of our compatriots to enter the real estate market. "I would like to point out that the cost of affordable housing, whether buying or renting, has increased dramatically," Christodoulides said recently.

Despite promising to introduce a comprehensive affordable housing strategy in the coming months, the government has been criticized for "not doing enough". In comments to the Financial Mirror, Green Party leader and MP Haralambos Theopemptou said that based on mortality and birth rates, as well as information on the number of migrants, refugees from Ukraine and employees of high-tech companies moving to Cyprus, it can be estimated that an additional 2,000-3,000 new homes will need to be built every year for the next decade.

Parliament's pressure on the government to provide information on the amount of housing available for young families in the next ten years has received only a vague response. "Based on government data on mortality and birth rates, as well as information on the number of migrants, refugees from Ukraine and employees of high-tech companies moving to Cyprus, we estimate that an additional 2,000-3,000 new homes will need to be built every year for the next decade," Theopemptou said.

According to the MP, Cyprus lacks a comprehensive housing and planning strategy. "The best example is the government's decision to establish the Cyprus University of Technology in the heart of Limassol, where it is almost impossible to rent housing for students due to high prices and lack of supply," Theopemptou said. He explained that most of the affordable housing is occupied by employees of offshore and high-tech companies moving to Cyprus.

The lawmaker said demand from Ukrainian refugees who fled their country after Russia invaded last year is further reducing supply. A government program that sponsors hotels to house Ukrainian refugees ends Wednesday.

The Green Party MP argues that the state should propose an affordable housing strategy. "It's being done everywhere in the EU. It's called social housing. The state can build houses or apartments to rent or sell to low-income families. About two-thirds of the housing in Vienna, Austria, is built with the social housing model," Feopemptu said.