03.06.2024
The cost of buying houses and apartments has become a huge problem in recent years. Of course, there is also the issue of housing rent levels, with rents and values rising by around 20% in the cities over the past two years. This is due to improper construction of new units and due to shortages caused by short-term rentals with very high rents, as well as the increased number of students increasing demand in areas close to various colleges. All this, while wages in the private sector remain at the same level, creates a problem.
If we look at the issue of rent in particular, the problem will continue to grow. There are several suggestions that could help mitigate the problem.
Within and/or on the periphery of cities for residential development, the development rate can be increased by 30-40% on land plots with an area of more than 2000 square meters. m and for units that will be rented for a period of at least 10 years with appropriate evidence. These units may be made available to third parties through purchase, provided that those purchasers have the same lease obligation.
Since the first day some “wise” city planners proposed setting a minimum area based on the number of bedrooms in 1990, construction costs have increased. Eliminating this restriction or reducing the minimum areas will increase the number of units and reduce costs.
At the same time, apartments rented for a decade should not require a parking space per apartment, but one space for two. This proposal will reduce construction costs and therefore rents. This unit would be suitable for rental to students.
A significant percentage of landlords rent out their apartments because of the dangers associated with renting, such as debtors not paying due to lengthy legal proceedings, which compounds the problem. This problem is difficult to overcome. Perhaps a starting point for discussion could be a proposal for immediate summary eviction, with a waiting period of no more than three months. Currently it is a minimum of six to twelve months.
There is also a proposal for subsidies, but this measure would burden the state with millions in additional funds and be subject to the various gimmicks that usually accompany them. This is not a solution.
Cypriots need immediate implementation of the proposal to tax short-term rentals. The implementation of this measure also requires the participation of local authorities.
Colleges and universities should consider renting directly from owners and renting to students. An investor will require lower rents if they rent out multiple units and will receive a guaranteed amount rather than having to chase each student individually to pay. These institutions will be burdened with their own costs, but at the same time will solve the housing problem of their own students.
Everything else is just talk to please the public.
