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Interior Minister: Coordinated European Response Needed to Housing Crisis

Published January 15, 2026, 08:14
Interior Minister: Coordinated European Response Needed to Housing Crisis

The Minister of Interior, Konstantinos Ioannou, emphasized the need for a coordinated European response to the housing crisis, during a briefing to journalists in Brussels. He highlighted that the lack of affordable housing has a broad impact on social cohesion, economic resilience, and demographic developments. Without access to decent housing, it is difficult to attract and retain workers and support families. The Minister stated that Cyprus will promote four pillars for affordable housing, in line with the European Plan: increasing supply, mobilizing investment, supporting citizens against energy poverty, and protecting vulnerable households. Addressing affordable housing is considered an investment in the future of Europe and not merely a social expense. It was pointed out that short-term rentals, such as through Airbnb, put pressure on the market, as owners prefer to rent to tourists rather than permanent residents, driving up prices. Similar problems are observed in cities such as Madrid, Lisbon, and Athens. The Cypriot government has already taken steps to reduce construction licensing time, from one and a half years to 40-80 working days, and provides incentives to builders, such as an increased building factor, with the obligation to allocate part of the properties as affordable housing. The Minister warned that increasing supply is essential to avoid further price increases.