Breaking news

Housing Affordability Crisis In Cyprus: Policy Reforms And Economic Implications

by THEFUTURE.TEAM

November 21, 2025

At the 4th Akel Economy Forum in Nicosia, leading policymakers and industry experts issued a decisive call for comprehensive reforms to address the mounting housing affordability crisis in Cyprus and across the European Union. Conversations centered on introducing tighter controls over property purchases by third-country nationals, accelerating licensing processes, and establishing a unified housing authority to ensure balanced market practices.

Addressing Housing Vulnerabilities

Discussions, framed under the theme ‘Mass Real Estate Purchase And Housing Crisis: Right Or Privilege?’, featured contributions from figures such as Akel MP Aristos Damianou, MEP Ilaria Salis, Constantinos Constanti of the Scientific And Technical Chamber (Etek), and Stelios Gavriil, President Of The Association Of Building Contractors (Oseok). Their analysis revealed that both national and European initiatives have thus far fallen short in arresting the relentless climb in property prices and rents, systematically excluding low- and middle-income households from the market.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

EU Policy And The Role Of Brussels

MEP Ilaria Salis observed that the demand pressures in Cyprus echo challenges seen in major Italian cities and other EU locales. She noted that while Brussels is poised to unveil an action plan by mid-December, there has been minimal consultation with the European Parliament—a gap that could undermine the robustness of future housing legislation. Salis warned that existing EU policies overly favor private interests, offering little support for rent regulation or the development of public and social housing.

Strategic Shifts In Housing Policy

Advocating for a paradigm shift, Salis emphasized the need to reconceptualize housing as a social right and curb the allure of disproportionate profits. She proposed policy measures that include:

Implementing democratic and collective contracts that incorporate rent caps linked to income, ensuring housing costs do not exceed 30 percent of monthly earnings.
Enforcing limits on short-term rentals to promote long-term affordability.
Commencing sizable investments in public and social housing, with urban renewal projects featuring a mandated percentage of non-market units, partly funded by European resources.
Institutionalizing citizen participation via community associations to directly shape housing policy, alongside establishing EU-wide standards to shield households from eviction.

Local Initiatives And Broader Economic Impact

Local governmental bodies also offered targeted proposals, ranging from restricting property sales to third-country nationals and repurposing vacant units, to streamlining planning permits. Etek introduced fiscal incentives such as reducing VAT to 5 percent for renovation projects, reforming the ‘renovate-to-rent’ scheme, and taxing idle land to incentivize development.

MP Aristos Damianou highlighted that Akel’s comprehensive housing policy package, currently embodied in two newly proposed bills, aims to enhance access to affordable housing as the government transitions away from unsustainable models like the now-defunct golden passport scheme. He argued that an open economy naturally recalibrates in response to emerging market opportunities, setting the stage for more socially balanced development.

A Decade Of Strategic Change

Industry leader Stelios Gavriil underscored the necessity of refining existing housing schemes to broaden beneficiary eligibility. He urged that financial institutions ease the path for young couples—especially regarding down-payment requirements for bank loans—and called for a forward-looking, ten-year national housing strategy.

In summary, the forum underscored the urgency for both local and EU-wide reforms, positioning housing not merely as a commodity but as an essential social right. As policymakers and market leaders align on these initiatives, the evolving landscape may well offer a blueprint for resolving the housing crises confronting many modern economies.

The Future Forbes Realty Global Properties

Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

by THEFUTURE.TEAM

December 24, 2025

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

Follow THE FUTURE on LinkedIn, Facebook, Instagram, X and Telegram

Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.