By Mersina Isidorou
- General Director, Real Estate Development Association
True success in addressing the housing problem in Cyprus is measured by the people, families, and young people we ultimately manage to house.
ΣΧΕΤΙΚΑ ΑΡΘΡΑ
This was recently stated by the President of the Real Estate Development Association, Yiannis Misirlis, during a television appearance. And perhaps this observation sums up the essence of the housing debate better than anything else.
Because at the end of the day, the success of a housing policy is not judged by the number of measures announced or incentives introduced. It is judged by whether more households can actually find suitable housing—whether to buy or rent—at a cost they can afford.
And for that to happen, increasing the housing supply is one of the most fundamental prerequisites.
Greater supply, more choices
Housing is a complex issue influenced by many factors. One of the most significant, however, is the imbalance between demand and the available housing supply.
When there is insufficient housing supply in areas with high demand, citizens’ options are limited and upward pressure on prices intensifies. Increasing supply, therefore, is an essential part of the effort to improve access to housing.
We need more housing on the market, but also housing that meets the actual needs of modern households in terms of size, location, and cost.
From Permit to Home
To substantially increase the housing supply, we must examine the main obstacles along the course of a project: from obtaining a permit to the start of construction, the building process, and, finally, the handover of the home to the homeowner.
Delays in the permitting process are one of the main obstacles along this path. They drive up costs, push back timelines, and delay the entry of new housing units into the market. That is why we need faster, simpler, and, above all, predictable procedures, with clear timelines, a consistent approach to implementing these procedures, and more effective coordination among all relevant agencies.
The Nicosia EOA has shown positive results in terms of licensing, as have other EOAs. What is important is that this progress be reinforced and made even more consistent, so that best practices are applied more widely and the time required to review an application is as clear and predictable as possible. For a land developer, predictability is just as important as speed, as it allows for better planning, limits additional costs, and facilitates the timely implementation of projects.
However, the issuance of a permit does not automatically mean a new home will be on the market. Once a project is approved, the conditions must be in place for it to be built without further significant delays. At this stage, the availability of skilled labor is an equally critical factor.
The shortage of technical and specialized personnel affects the pace of project execution, increases costs, and limits the sector’s actual ability to meet the need for more housing. We cannot aim for a significant increase in the housing stock without ensuring that the people and skills required for its construction are available.
That is why the discussion on housing must link permitting to the sector’s actual production capacity. The goal is not simply to issue more permits, but to ensure that these permits are converted as quickly as possible into projects, into completed homes, and, ultimately, into more options for citizens.
Utilizing the Existing Housing Stock
Beyond the construction of new homes, a significant part of the effort to increase supply also lies in making better use of the existing housing stock.
Vacant, old, or underutilized homes can, through well-designed incentives for renovation and energy upgrades, be reintroduced into the market and provide additional housing options more quickly. This is an approach that can yield substantial results, particularly in areas where there is already high demand but limited supply.
The “Renovate – Rent” initiative under housing policy follows this logic; it is a positive step that can be further strengthened so as to mobilize a larger portion of the inactive housing stock and return more homes to the long-term rental market.
At the same time, the right conditions need to be created for the development of more housing units intended from the outset for long-term rental, including through models such as Build-to-Rent. Expanding the supply in the rental market is just as important as increasing the supply of homes for sale.
An effective housing strategy must, therefore, leverage all available sources of supply: new developments, bringing existing homes back onto the market, and promoting long-term rentals. The goal must be to provide citizens with more genuine options, whether they wish to buy or need a stable and financially sustainable rental solution.
From Policies to Results
Effectively addressing the housing crisis requires a comprehensive set of measures: support for vulnerable groups, incentives for the production of affordable housing, public-private partnerships, and better utilization of the existing housing stock.
The Ministry of the Interior’s housing policy is moving in a positive direction through a series of measures aimed at strengthening both the supply of and access to housing. What is crucial, however, is that these policies achieve the necessary scope, are implemented consistently, and yield measurable results in practice.
After all, all interventions must ultimately converge toward a specific goal: to increase the number of homes actually available on the market and to expand the options available to citizens.
This is the critical challenge for the coming years. We need to move beyond plans, permits, and numbers to focus on the homes that are actually completed and delivered—but above all, on the people who ultimately manage to gain access to housing.
Because that is where the true success of any housing policy must be measured: in how many more real housing solutions are created.
