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Cyprus Faces Urgent Housing Crisis, Calls for Immediate Action

Cyprus is grappling with a pressing housing crisis that demands immediate attention, according to Marinos Kineyirou, the president of the Cyprus Real Estate Agents Registration Council. Kineyirou emphasized that the situation is dire, and various indicators reveal the gravity of the issue. He stressed that "something needs to be done soon" because acquiring housing, whether through purchase or rental, has become increasingly challenging in Cyprus.

Cyprus Faces Urgent Housing Crisis, Calls for Immediate Action

While Kineyirou acknowledged that this problem is not unique to Cyprus, he pointed out that it's a growing concern in many developed countries. Homeownership, particularly for young people like millennials, is becoming progressively more challenging even in countries like the United States and the United Kingdom.

Several factors contribute to this issue, including ongoing global economic developments, demographic changes, and increased life expectancy, which delays the release of properties for sale or rent. Moreover, the European Central Bank's monetary policy decisions aimed at curbing inflation have pushed housing loan interest rates higher, making monthly installments nearly double what they were in the past.

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Kineyirou also highlighted the impact of increased demand from international arrivals, driven by the relocation of companies and personnel to Cyprus in recent years. This demand has bolstered the property market but has also led to rising property prices due to limited housing stock. He noted that apartment purchase prices increased by approximately 12% in just one year, and rental prices rose by about 20%.

The recent turmoil in Israel is also expected to bring more Israeli residents to Cyprus for security reasons, similar to the influx of Ukrainians and Russians after the war in Ukraine. Kineyirou emphasized that maintaining reasonable property prices is crucial to keep these newcomers in Cyprus.

Kineyirou stressed the importance of immediate government action, urging the development of a comprehensive strategy with both long-term and immediate solutions. He stated, "We are no longer merely talking about the right to property in the legal sense but about being able to access housing and what it means for a country's residents." The housing crisis in Cyprus is a complex issue with implications for the well-being and quality of life of its residents, making it a matter of utmost importance.


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