the housing shortage is complicating the attraction of companies and specialists.

Tax incentives help attract companies and specialists to the island. But expensive rent and a limited choice of apartments can cancel out part of these advantages. This problem is raised by a Cyprus Mail columnist, drawing on a European Commission report.

Housing demand exceeds supply by about 39,000 houses and apartments. The most strained situation is in cities with high demand from business and tourists, above all in Limassol.

Over five years, from 2020 to 2025, property rose in price by about 28%. Rents are increasing even faster, and the spread of short-term letting is reducing the choice for those who need housing for a long period.

The columnist sees the construction of homes specifically for long-term rental as a possible solution. Such complexes could offer apartments both to individual specialists and to families — with professional management and the possibility of staying for several years.

Affordable-housing programs are already operating on the island, but the planned volumes are still far below the stated need.

Without an expansion of supply, competition for apartments will continue to intensify. This affects both local residents and companies, which find it increasingly difficult to provide employees with an affordable move.

@cyprus_kipr