08.11.2023
Measures and proposals to find affordable housing were presented by the Cyprus Economic and Competitiveness Council (CEC). Stating that the search for affordable housing is one of the most serious socio-economic problems facing Cypriot society today, and the problem is constantly expanding, the CEC says it considers it necessary to take further measures to support citizens, and especially young people.
Among the council’s recommendations is the creation of a Unified Housing Policy Directorate. This body will be responsible for formulating the state’s housing policy and will serve as the main guideline for all housing plans. In addition, the council proposed using public lands through collaboration between the private sector and government to provide affordable housing options. Moreover, they proposed strengthening the Cyprus Land Development Corporation by increasing its capitalization and forming a partnership with the Cyprus Chamber of Science and Technology (Etek) to be able to implement low-cost and quality housing projects.
The Economic and Competitiveness Council also believes that the incentives offered from time to time should be part of a broader plan aimed at developing and revitalizing the territories, taking into account the simultaneous need for decentralization and reducing the traffic problem.
The Council stresses that the general direction should be to try to avoid “ghettoization” in developments aimed at easing the problem of housing and renting, and should therefore try to bring together families from different socio-economic backgrounds. To this end, incentives for purchasing or renting housing in private developments based on socio-economic criteria could be considered.
Incentives can be either tax breaks or grants. However, rent subsidies must be highly targeted as they are not a suitable long-term solution. The goal should be to increase the supply of low-rent apartments or subsidize borrowing costs, he says.
He also suggests encouraging home working in both the public and private sectors, as well as improving the road network and offering good public transport, as these measures will help individuals and families settle outside cities and this will contribute to the development and revitalization of these areas.
