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.
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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.
