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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.

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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.

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EU Mercosur Agreement Sparks Political Battle Over Cyprus Agriculture

by THEFUTURE.TEAM

January 16, 2026

A political battleground emerged in the Parliamentary Agriculture Committee’s latest session, as fierce debates broke out over the controversial trade deal between the European Union and Latin American nations under the Mercosur framework. Lawmakers voiced deep concerns regarding food safety and the prospects for local agriculture, particularly following the high-profile absence of the Minister of Trade.

Minister Absence And Parliamentary Integrity

Committee Chair Giannakis Gabriel expressed strong disapproval over the Minister’s no-show, noting that the extraordinary session was scheduled at midday at the Minister’s own request. “His absence undermines the authority of the parliament,” Mr. Gabriel declared. Given that the Minister is not abroad, it was expected that he would be present to clarify why Cyprus supported an agreement widely criticized as disadvantaging the agricultural sector.

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Trade Deal Under Scrutiny

In his address, A.C.E.L General Secretary Stefanos Stefanos described the pact as a “dangerous agreement” imposed under the pressure of multinational conglomerates. He especially critiqued the contrasting sanitary standards whereby, while the EU bans our farmers from using certain pesticides and antibiotics, the Mercosur deal appears to allow imports produced with these very substances. His remarks underscored the possibility of double standards in safety measures and the potential long-term impacts on Cypriot agriculture.

Economic And Safety Concerns

Legislators questioned the basis of government studies that justified backing the agreement, even as Cyprus’ agricultural sustainability is increasingly threatened by water scarcity and soaring production costs. Representatives from various political factions pointed to insufficient controls over import volumes and tariff structures. For example, Christos Orphanidis (DIKO) demanded precise data on imports from Latin America, citing honey as a case in point, and pressed for clear explanations regarding the tariff regime.

Legal And Health Implications

Questions about legal authority were raised by Elias Myriantounos (EDEK), who inquired whether parliament can reject or amend the agreement should economic studies forecast negative outcomes. Environmental advocates, like Haralambos Theopemptou of the Movement of Ecologists, emphasized the need to safeguard traditional products such as halloumi, highlighting concerns over how rigorous food safety controls will be maintained. Meanwhile, Linos Papagiannis (ELAM) cautioned against unfair competition, drawing parallels with challenges posed by lower-standard goods from occupied territories.

Protecting Local Interests

The overarching message from lawmakers was clear: the future of Cyprus’ farming community and the well-being of its citizens should not be sacrificed at the altar of commercial trade. Agricultural organizations have voiced alarm over the importation of goods potentially contaminated with banned substances, the risk of market distortion by low-quality products, and the lack of localized impact studies. They argue that the agreement is biased in favor of select corporate interests, ultimately undermining consumer safety and the livelihood of European farmers.

As this debate continues to unfold, the outcome of these deliberations will be pivotal in determining not only trade policy but also the long-term economic and food security landscape of Cyprus.