Cyprus faces some of the highest housing pressures in the European Union, with rents rising 30% to 40% in five years, AKEL Secretary‑General Stefanos Stefanou said at an event on housing policy hosted by the European Parliament Office in Nicosia.
Citing European Commission data, Stefanou said Cyprus will need about 43,000 housing units over the next decade, while soaring housing costs have left 270,000 people in the lowest income bracket.
He also referred to figures from the Statistical Service showing 140,000 people living at the poverty line, with annual incomes below 15,500 euros. Including the lower‑middle‑income group, he said nearly half the population lives on or near poverty‑level earnings.
Stefanou said the absence of a comprehensive state housing strategy has worsened affordability, arguing that programs must be part of a flexible, well‑funded national policy.
He also linked the housing strain to accelerated foreclosures, saying legislative changes in recent years have strengthened banks and investment funds. AKEL has submitted proposals to protect primary residences, which are expected to reach the full parliament.
He cited testimony from the Financial Ombudsman warning that a large number of first‑home foreclosures could occur in 2026.
Stefanou outlined AKEL’s housing proposals, including a unified housing authority, a state housing‑finance body for social programs, a special fund for young couples without capital, rent subsidies for low‑income households, social‑housing projects with local authorities, planning incentives for affordable housing, and measures to curb large‑scale property purchases by non‑EU nationals. He said such purchases have contributed to rising property prices.
Larnaca Mayor Andreas Vyras told the event that rents in the city have tripled in recent years, while MEP Giorgos Georgiou said Cyprus lacks a strategic plan centered on social housing.