The Association of Major Investment Projects has released a statement addressing the critical shortage of affordable housing and its potential impact. The group emphasized that this problem, combined with the overall scarcity of housing, demands immediate action.

The association pointed out that a key issue is ensuring Cyprus continues to be appealing for corporate headquarters, which necessitates prioritizing housing for employees of large firms. It cautioned that the ongoing housing shortfall poses a significant hurdle to the relocation of corporate operations.

“Establishing corporate headquarters in Cyprus offers undeniable advantages,” the association noted. “Such ventures generate employment opportunities, stimulate technological advancements, and bolster the local economy.”

These headquarters are pivotal in drawing global business interest and significantly contribute to enhancing trade and investment in Cyprus. Politically, they improve the business environment and promote further investment, while economically, they enhance the nation’s competitiveness, boosting employment, GDP, and commercial activities.

With continuous infrastructure enhancements and governmental backing, Cyprus is well-positioned to foster an investment-friendly climate and reinforce its status as a worldwide hub for corporate headquarters. Nonetheless, providing affordable housing for employees and their families remains a formidable challenge, intensified by a scarcity of housing units and escalating rents.

The association warned that this issue might make companies reevaluate relocating their headquarters to Cyprus or discourage new businesses from establishing operations, despite the island’s initial allure. This underlines the complexity of the issue and the necessity for strategic, holistic planning.

The group proposed that the government could incentivize foreign companies to construct employee housing by offering targeted benefits, such as increasing the building rate in specific regions to tackle the shortage.

Moreover, addressing inefficiencies in the development licensing system is critical. Despite attempts to streamline processes, delays associated with newly introduced environmental impact assessments (EIAs) continue to impede approvals, further exacerbating the housing crisis and driving up prices.

The association highlighted that leveraging technology is essential to create a more business-conducive environment. Delays in approvals adversely affect Cyprus’ competitiveness, blocking investment opportunities that could benefit both the economy and society.

If these challenges persist unaddressed, they could severely undermine the country’s economic and strategic objectives, the association concluded.