Cyprus is facing one of the strongest housing pressures in the EU, with rents rising by 30% to 40% over the past five years, Stefanos Stefanou, Secretary-General of AKEL, said on Monday.
He was speaking at a discussion on the right to housing held in Nicosia by the European Parliament Office in Cyprus, alongside MEP Giorgos Georgiou, who said Cyprus lacks a comprehensive housing strategy focused on social housing.
Risk of foreclosures
Stefanou cited European Commission data showing that Cyprus will need around 43,000 homes over the next decade, while housing costs have surged. He added that a large part of the population is struggling financially, with many people living at or near the poverty line.
He criticised the lack of a coordinated state housing policy, saying existing measures are not enough to address rising costs or help people access housing. He also warned that fast-track foreclosures could worsen the situation, with a risk of increased repossessions in 2026.
Stefanou outlined proposals by AKEL, including the creation of a central housing body, rent subsidies, support for young couples, incentives for affordable housing and stricter rules on large-scale property purchases by foreign buyers.
Plans for affordable homes
From the government side, housing policy director Patrina Taramidou presented measures aimed at increasing housing supply, particularly affordable homes.
She said more than 2,500 housing units are expected to be built over the next two years through planning incentives and “build-to-rent” schemes, with part of these allocated to affordable housing.
Additional plans include around 500 affordable rental units on state land, student housing projects and accommodation for workers in key sectors. Improvements to renovation schemes and faster licensing procedures are also expected to help thousands of households access housing sooner.
According to Eurostat, Cyprus has the highest share of people in the EU facing housing difficulties, at over 11%, compared to less than 5% on average across Europe, Georgiou said.
He argued that current policies rely too heavily on market forces and do not sufficiently treat housing as a social right.
Rent prices triple
Meanwhile, Larnaca mayor Andreas Vyras, said rents in his city have tripled in recent years. Flats that once cost around €500 per month now reach €1,200 to €1,500, while property prices have also sharply increased.
He noted that most new developments are aimed at foreign investors, with very few homes available to local buyers. He also said that the spread of short-term rentals, such as Airbnb, has pushed prices even higher.
Vyras warned that many young people can no longer afford to leave their family homes, as strict lending rules and high property prices make it difficult to secure a mortgage.
He called for stronger policies, including limits on short-term rentals in certain areas, incentives to use empty properties and more support for social housing.
CNA