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Yiannis Misirlis: Property prices will only decrease if we increase the total housing supply
Cyprus is at a critical juncture in its housing crisis, with property prices on the rise and supply struggling to meet existing demand. While the Government’s Housing Policy is moving in the right direction, there are issues in the procedures followed for its implementation. Real estate professionals agree that only by increasing the total housing supply can property prices be reduced.
During a panel discussion held as part of the RealtyOn Expo in Limassol on May 8–9, the Chairman of Imperio Group and Chairman of Cyprus Property Developers Association, Yiannis Misirlis, emphasised that the key issue is increasing total housing supply. If this is achieved, it will lead to lower prices and a more balanced market. Industry experts participating in the discussion agreed that the government’s measures and programmes for affordable housing are on the right track. However, Mr. Misirlis stressed that “the housing shortage will not be solved solely through affordable housing projects, but through an increase in overall supply.”
Faster Licensing Procedures
Mr. Misirlis placed particular emphasis on the development licensing process, noting that “the new automatic licensing procedures are a good start.” He added that past delays in permit issuance have acted as a brake on development. He specifically referenced a study showing that delays in licensing can add up to 10% to a project’s final cost—a cost that is ultimately passed on to the buyer. “If we can issue permits in two months instead of three or four years, we’ll see a meaningful reduction in prices and more viable business planning,” he highlighted.
Labour Shortages
Mr. Misirlis also touched on another major challenge facing the real estate sector: the shortage of labour. “If we continue like this, we may have permits and plans, but no workers to carry out the projects—meaning the crisis will persist,” he said, adding, “Together with the Ministry of Labour, we are working to address this issue as well.”
Technology as an Ally
Finally, the Chairman of Imperio Group underlined the importance of technology, noting that it can be a strong ally in improving processes. Participants in the discussion specifically referenced the “IPPODAMOS” system, agreeing that it must be improved to truly facilitate the licensing process. “If a private company used a non-functional system, it would replace it the very next day. The government should do the same—especially when we’re talking about an industry that represents 15% of GDP and employs 40,000 of our fellow citizens” said Mr. Misirlis.
He concluded by stating that tackling the housing crisis requires a coordinated approach from Authorities, the Ministries of Interior and Labour, the banks, and all stakeholders—placing the increase of total housing supply at the forefront. This, in turn, will lead to reduced property prices and the normalisation of rents.
*Υiannis Misirlis, Chairman of Imperio Group & Chairman of Cyprus Property Developers Association (CPDA)
