Comprehensive Measures Proposed by Cyprus Council to Tackle Affordable Housing Crisis

The Cyprus Economy and Competitiveness Council (Soak) has presented a robust set of measures and recommendations aimed at addressing the critical issue of affordable housing in Cyprus. Recognizing the significance of this challenge as a pressing socioeconomic concern, the council has emphasized the need for additional measures to provide support, particularly focusing on the youth and young couples in the country.

A key recommendation from the council involves the establishment of a Unified Housing Policy Authority. This proposed authority would play a crucial role in shaping the state's housing policy, serving as the central reference point for all housing plans. The intention is to streamline and centralize decision-making processes related to housing policies.

Furthermore, the council has put forth innovative suggestions, including the utilization of state-owned land through collaborative efforts between the private sector and the government. This collaboration aims to create opportunities for the development of affordable housing options, addressing the demand for accessible housing solutions.

The proposal also advocates for the reinforcement of the Cyprus Land Development Corporation by increasing its capitalization. Additionally, forming partnerships with the Cyprus Scientific and Technical Chamber (Etek) is suggested to enable the implementation of cost-effective and high-quality housing projects.

To contribute to a housing fund or support construction projects, the council has recommended adopting compensatory measures from large-scale developments. This approach could provide additional financial resources to address the housing affordability issue.

In terms of financial incentives, the council proposes tax incentives based on economic, age, and geographic criteria. Additionally, subsidizing housing loan interest rates for first-time homebuyers is suggested, aiming to facilitate home ownership for this demographic.

Importantly, the council stresses the need for targeted support rather than general rent subsidies, considering it a more effective long-term solution. The goal is to increase the supply of low-cost housing units and subsidize borrowing costs to promote overall affordability in the housing market.

In a broader context, the council recommends measures to promote remote work in both the public and private sectors. Simultaneously, improvements in the road network and efficient public transportation services are suggested to encourage settlement in areas outside major cities. These measures are envisioned to contribute to the development and revitalization of regions beyond urban centers.

The council also emphasizes the importance of preventing the creation of isolated residential areas, underscoring its aim to integrate households from diverse socioeconomic backgrounds. Finally, the Cyprus Economy and Competitiveness Council suggests that these incentives should be incorporated into a comprehensive plan targeting the development and revitalization of specific areas. This approach takes into account the need for decentralization and the reduction of traffic congestion, aligning with a holistic vision for sustainable urban and regional development.

By fLEXI tEAM