Urgent call for government action on affordable housing crisis in Limassol

A housing problem in Limassol's city has smashed the hopes of numerous low-income families. A state-sponsored affordable housing project has been put on hold because of a lack of funding, prompting urgent requests for the government to act quickly.

A state-sponsored affordable housing project in Limassol has encountered a significant setback because of a lack of funding, which has prompted stakeholders to urge the government to act quickly to alleviate the city's worsening housing issue. The government has been asked to act swiftly by the Cyprus Scientific and Technical Chamber, which has highlighted the predicament of lower-income families who are left with few housing options.

Constantinos Constanti, the head of the chamber advising the administration, stressed in a letter to President Nikos Christodoulides that the failure to complete this housing project had crushed the dreams of 600 disadvantaged families. He emphasized the essential value of having a secure roof over one's head, describing it as one of life's necessities that should not be disregarded.

Constanti said that the cost of owning or even renting a home has increased dramatically, making it a distant dream for the majority of people. Recent occurrences involving a Limassol affordable housing project that was put on hold due to insufficient funding have only served to exacerbate this urgent issue.

During a press conference, Limassol Mayor Nicos Nicolaides announced the indefinite postponement of the state-financed project, which aimed to construct 600 housing units in the city. A significant deficit of €7 million out of the required €20 million arose due to the cancellation of the Citizenship for Investment scheme in November 2020.

Nicolaides underlined the importance of not canceling projects related to affordable housing, highlighting that the municipality had offered €25 million worth of land for this purpose. The initial phase of the project was set to commence construction at the end of the previous year and would have seen the development of 138 apartments.

The municipality had entered into an agreement with the state Cyprus Land Development Corporation to build 600 residential units in three municipal residential areas, with the aim of providing affordable housing options to tackle the escalating property costs in Limassol.

Constanti reiterated the urgency of moving forward with this project, emphasizing that the state has a responsibility to increase the supply of residential units, especially in areas facing housing shortages. He lamented the fact that people are being forced to leave their city due to the exorbitant rents and property prices. He argued that a comprehensive strategy is necessary to address this multifaceted issue, and he called for the creation of a single organization to plan and coordinate governmental housing policy.

In order to allay worries, President Nikos Christodoulides promised that the state's affordable housing policy, which will be announced at the end of the month, will include the Limassol housing project. The specifics of this housing policy, which is anticipated to include incentives targeted at alleviating the housing problem, will be announced by the Ministry of the Interior.

According to reports, the government is planning to make the first affordable housing units in Limassol available by 2026.

Meanwhile, renting in Limassol has become increasingly challenging, with real estate agents reporting long waiting lists, a phenomenon previously unseen in the city. High-income earners relocating to Cyprus, particularly those in the tech and fintech sectors, are driving up rents significantly, outpricing many locals.

Eleni Averkiou of Danos/BNPRE Group noted that executives are willing to pay well above the minimum wage, approximately €1,000, just for a studio flat. This influx of high-income earners has led to rising rental costs and a shortage of available flats.

The situation is particularly dire for students seeking accommodation in the city. Renting a modest studio apartment outside the city center can cost anywhere from €500 to €700 per month. One-bedroom flats start at €700, while two-bedroom options range from €1,000 to €1,200 per month. Three-bedroom flats command even higher prices, ranging from €1,500 to €2,000.

Averkiou added that when it comes to new apartments, prices often exceed the €2,000 mark. This housing crisis is creating significant challenges for students and families, as they find themselves increasingly excluded from the rental market in Limassol.

Although the way ahead may be difficult, the dedication to solving this problem offers promise for a better housing future in Limassol. There is a widespread commitment to making sure that every resident can find a place to call home, potentially signaling a shift in the city's housing market.