By Yannis Misirlis

• President of the Real Estate Development Association

The shortage of human resources is currently one of the most significant challenges facing the real estate development and construction sectors in Cyprus. The difficulty in finding sufficient and properly trained technical and scientific personnel is becoming increasingly acute, with repercussions that affect the entire industry, its competitiveness, and, more broadly, the Cypriot economy.

The problem takes on even greater significance at a time when the sector is called upon to make a substantial contribution to addressing the housing crisis. To increase the housing supply, it is not enough to simply create the appropriate urban planning and permitting conditions for new projects. There must also be the human resources capable of implementing these projects in a timely and effective manner.

A Multidimensional Problem

The limited availability of labor is the result of many factors. Fewer young people are choosing technical professions today, while a significant portion of the sector’s experienced workforce is now older.

The challenge, however, is not merely a matter of numbers. There is a growing need for specialized skills. The sector has an ever-increasing need for specialized professionals. The green and digital transitions, increased energy efficiency requirements, new technologies, and modern construction methods all demand a higher level of technical training and expertise.

A sufficient workforce is therefore a prerequisite not only for maintaining the sector’s productive capacity but also for its modernization.

Impact on Time, Cost, and Supply

Staff shortages directly affect project timelines. When there are not enough staff, construction times lengthen, productivity is limited, and operating and financing costs rise, thereby increasing the final cost of the property.

This issue is also directly linked to the housing sector. Today, one of the key priorities is to increase the available housing stock and bring more homes to market as quickly as possible. However, when a shortage of labor slows down the construction and completion of new projects, the growth in supply slows down accordingly.

In a market where demand for housing remains high, the inability to increase the housing stock more quickly maintains pressure on the market and hinders efforts to improve affordability. For this reason, addressing the housing crisis cannot be considered solely through urban planning incentives, faster permitting processes, or new housing projects. At the same time, it is necessary to ensure that the sector has the production capacity and the necessary workforce to turn new permits and incentives into actual housing units.

Strengthening the workforce is, therefore, an essential prerequisite for increasing supply and part of a comprehensive approach to addressing the housing problem.

A Multidimensional Approach Is Needed

Addressing the problem requires a comprehensive approach.

First and foremost, the Ministry of Labor must respond more promptly and decisively to the actual needs of the construction industry, by expanding the ability to employ suitably trained workers from third countries where needs cannot be met by the Cypriot and European labor markets. At the same time, approval and licensing procedures must become faster, simpler, and more predictable. The government cannot, on the one hand, seek to increase the housing supply more rapidly while, on the other hand, the sector lacks the necessary workforce to build them.

At the same time, it is important to invest in integrating more Cypriots into the construction sector’s labor market. A more meaningful alignment of education with the needs of the labor market, strengthening technical and vocational education, and upgrading training can help create a new generation of professionals.

We also need to make technical professions more attractive to young people by highlighting the opportunities for career advancement and specialization offered today by a sector that is evolving technologically.

Part of the solution also lies in leveraging technology. The broader use of BIM, prefabrication, standardization, automation, and other modern construction methods can contribute to better project coordination, reduce errors and delays, and make more effective use of available human resources.

Technology does not replace the need for people. It can, however, enhance their capabilities and help the industry produce more and more efficiently.

A Strategic Priority for the Future

Strengthening the workforce must be treated as a strategic priority for the industry. If we want more housing, faster project completion, and a more competitive and sustainable industry, we need more professionals, modern skills, and new construction methods.

The long-term solution lies in education, training, and technology. The immediate need, however, is different: the construction sector needs more workers right now. That is why the Ministry of Labor needs a more flexible and effective policy regarding the employment of workers from third countries, in cases where there is insufficient availability in the domestic and European labor markets. Otherwise, the goal of more and more affordable housing will continue to run up against the real constraints of the sector’s production capacity.

Ultimately, human resources are the foundation upon which Cyprus’s future growth will be built.