The Association of Large Investment Projects has issued a statement highlighting the shortage of affordable housing and its potential consequences. The association stressed that this issue, coupled with the general lack of housing availability, requires urgent attention.
According to the association a primary concern is ensuring Cyprus remains an attractive destination for corporate headquarters, which requires prioritising housing for employees of large companies. It warned that the current housing shortage is becoming a major obstacle to corporate relocations.
“The benefits of establishing corporate headquarters in Cyprus are undeniable,” the association stated. “Such investments create new jobs, foster technological innovation, and strengthen the local economy.”
Furthermore, these headquarters attract international business interest and play a crucial role in boosting trade and investment in Cyprus. Politically, they enhance the business climate and encourage further investment, while economically, they improve the country’s competitiveness, increasing employment, GDP, and commercial activity.
With ongoing infrastructure development and government support, Cyprus has the potential to cultivate an investment-friendly environment, solidifying its reputation as a global hub for corporate headquarters. However, securing affordable housing for employees and their families remains a major challenge, exacerbated by a shortage of residential units and rising rents.
The association cautioned that this issue could lead companies to reconsider relocating their headquarters to Cyprus or deter new firms from setting up operations, despite the island’s initial attractiveness. This highlights the complexity of the problem and underscores the need for strategic, comprehensive planning.
The association suggested that the government could encourage the construction of employee housing by foreign companies through targeted incentives, such as increasing the building rate in designated areas to help address the shortage.
Additionally, tackling inefficiencies in the development licensing system is crucial. Despite efforts to streamline procedures, delays linked to newly introduced environmental impact assessments (EIAs) continue to hinder approvals, further worsening the housing crisis and inflating prices.
The association emphasised that harnessing technology is vital to creating a more business-friendly environment. Delays in approvals negatively impact Cyprus’ competitiveness, obstructing investment opportunities that could benefit the economy and society.
If these issues remain unresolved, they could significantly harm the country’s economic and strategic goals, the association concluded.
