Council suggests a unified housing policy, state land utilisation, and various incentives to address the ongoing housing affordability issue.

The Cyprus Economy and Competitiveness Council (Soak) on Wednesday submitted a comprehensive set of measures and recommendations aimed at tackling the pressing issue of affordable housing in Cyprus.

Acknowledging the significance of this challenge as one of the most critical socioeconomic concerns facing Cypriot society today, the council called for the adoption of further measures to support citizens, with a particular focus on the youth and young couples.

Within this context, the Cyprus Council for Economic Competitiveness examined the best practices from other countries that could also be applied in Cyprus.

They also considered measures proposed by other stakeholders, including the government, to address this problem effectively.

Among the council’s recommendations is the establishment of a Unified Housing Policy Authority.

This authority would be responsible for shaping the state’s housing policy, serving as the primary reference point for all housing plans.

In addition, the council suggested utilising state-owned land through collaboration between the private sector and the government to provide affordable housing options.

What is more, they proposed strengthening the Cyprus Land Development Corporation by increasing its capitalisation and forming partnerships with the Cyprus Scientific and Technical Chamber (Etek), in order to be able to implement low-cost and high-quality housing projects.

The Cyprus Economy and Competitiveness Council also recommended adopting compensatory measures from large-scale developments, allowing the state to raise money, which could in turn contribute to a housing fund or go toward constructing buildings.

Furthermore, they proposed providing tax incentives based on economic, age, and geographic criteria, in addition to subsidising housing loan interest rates for first-time homebuyers.

Crucially, the council stressed the need for targeted support, rather than general rent subsidies, as a more effective long-term solution.

They continued by explaining that their goal is to increase the supply of low-cost housing units and subsidise borrowing costs, thereby promoting affordable housing.

The council also suggested promoting remote work in both the public and private sectors.

At the same time, they advocated for an improvement of the road network and the provision of efficient public transportation services.

These measures are expected to encourage individuals and families to settle in areas outside major cities, contributing to the development and revitalization of those regions, the council explained.

The council also stressed the importance of preventing the creation of isolated residential areas and underlined its aim to integrate households from diverse socioeconomic backgrounds.

Finally, the Cyprus Economy and Competitiveness Council stated that it believed that these incentives should be incorporated into a comprehensive plan targeting the development and revitalisation of specific areas, taking into account the need for decentralisation and the reduction in traffic congestion.