Cyprus needs bold solutions to address its housing crisis, according to Yiannis Misirlis, president of the Cyprus Land and Building Developers Association (LBDA).
Speaking at a conference titled “Housing Policy: From Theory to Practice” on Tuesday evening, Misirlis emphasised the urgency of addressing housing shortages that affect thousands of citizens, particularly vulnerable groups.
The conference, which took place on Tuesday at PwC’s headquarters in Nicosia, was organised by the LBDA.
Attendees included key figures from the Interior Ministry, such as Director General Elikkos Ilias and Head of Policy Director Patrina Taramidou, as well as professionals from the land development sector.
The event allowed business leaders and other local stakeholders to discuss new housing policies focused on increasing affordable housing through targeted incentives.
During his speech, Misirlis praised the ministry’s housing policy as a crucial step forward, expressing the Association’s commitment to constructive involvement in the effort.
“The common goal of all is to find radical solutions to solve the housing problem,” he said, stressing that the association would continue to offer expertise and support through its members.
Representing the Minister of Interior, Elikkos Ilias outlined the specifics of the government’s housing policy, which includes a range of urban planning incentives designed to stimulate investment in affordable housing.
He explained that these measures aim to increase the supply of affordable housing by offering urban development incentives to both private and public sector participants.
This, in turn, is intended to help mitigate the rising housing costs that have made home-ownership increasingly difficult for many Cypriots.
In his address on behalf of Minister Ioannou, Ilias said, “Special housing incentives with urban planning benefits are part of the integrated housing policy and include a coherent matrix of innovative policies.
These policies provide for the increase of the maximum building rate, aiming at the participation of the private and wider public sector in the production of housing stock.”
He added that this includes “new and existing inert properties, with their disposal at an affordable price.”
He further explained that the incentives operate along three key axes, offering a range of options for interested developers depending on their circumstances and project goals.
Developers can either leverage the incentives by creating affordable housing units on the same property as their primary development or utilise them on a primary property while providing affordable housing on a secondary property.
Alternatively, developers can also purchase all or part of the incentives and pay compensation to the special affordable housing fund.
As mentioned during the presentation, the three main incentives for affordable housing production include a building factor increase of up to 45 per cent for affordable housing units for sale, a similar 45 per cent increase for affordable housing for rent under the “Built to Rent” scheme, and an additional incentive offering a 25 per cent building factor increase for housing units intended for sale.
The incentives encourage developers to include affordable housing in their projects while benefiting from increased building capacity.
Ilias highlighted that the first planning applications for these incentives have already been submitted, with several affordable housing projects currently under review.
More applications for planning permission are expected soon.
He noted that “the first planning applications for the utilisation of housing incentives have already been submitted, while a number of affordable housing projects are currently under study, and soon, new applications for planning permission are expected to be submitted.”
The housing incentives, updated in June, are part of the government’s broader strategy to address the housing crisis by providing much-needed affordable homes for those in need.
A presentation from Constantinos Savvidis, Director of Real Estate Advisory at PwC Cyprus, examined the sustainability of these new incentives. He provided a detailed analysis of potential development scenarios, demonstrating how the policy could benefit both developers and the broader community.
Interest in the incentives has been growing since their introduction. Ilias said, “It is pleasing to the Home Office that the updated June incentives have attracted the interest of land developers, with increased interest in participating in investments in the affordable housing market.”
Further emphasising the importance of collaboration between the public and private sectors, Ilias thanked land developers for their continued support, assuring them that the Government remains committed to addressing the housing issue.
“I would like to take this opportunity to thank you warmly for your interest and continued support, as a social partner, in the government’s work to mitigate the housing issue,” he added.
In addition to the incentives, the ministry announced plans to launch several new schemes aimed at increasing the availability of affordable housing.
These include a “Renovate to Rent” programme, offering funds to property owners to renovate vacant or unoccupied properties, with the condition that they be rented out at affordable rates. Financial assistance will also be made available to first-time homebuyers under the age of 41, particularly young couples, in an effort to help them access the housing market.
Ilias outlined this plan, saying that “At the same time, in the next three weeks, a scheme offering financial assistance to young couples under 41 for purchasing their first home will be implemented.”
Concluding the event, Ilias reaffirmed the government’s commitment to addressing the housing issue and stressed the importance of continued collaboration between the public and private sectors.
He reminded the developers in attendance that “the success of the housing incentives rests on your participation and positive response to this call of the state,” urging them to continue working together to meet Cyprus’ housing needs.
Looking ahead, the ministry plans to monitor and evaluate the ongoing implementation of the housing policy, with the possibility of further refinements based on market conditions and feedback from key stakeholders.
Ilias reassured, concluding that “The ministry shall monitor and evaluate, on an ongoing basis, the evolving housing market conditions and new emerging social needs, updating, where necessary, the framework of housing incentives.”
Source: Cyprus-Mail
