Filenews 22 November 2025 - by Angelos Nikolaou
Housing was at the top of the political agenda of European leaders for the first time, with the presentation of the Council of the European Union's report "One Roof, Many Realities: Europe's Complex Housing Crisis" at the last Summit in October. The document, which was received by all the heads of state, including the President of the Republic, Nikos Christodoulides, attempts a comprehensive x-ray of the housing landscape in Europe.
The European housing problem is deepening and is now taking centre stage in EU policy-making. Despite the generalized crisis, Cyprus appears in a better position than the European average, with rent reductions in the critical period 2010-2025 and without explosive house price increases.
However, the inclusion of housing in the top European issues creates a unique opportunity for Cyprus to formulate a more integrated housing policy, taking advantage of the new resources and European initiatives that are currently taking shape.
Although the analysis records a generalized, structural housing crisis in Europe, Cyprus appears to be under limited pressure in terms of rents and is therefore not among the countries facing a severe housing crisis, at least based on the European indicators of the period 2010–2025.
The report presents an alarming pan-European landscape, with skyrocketing construction costs increasing, while at the same time incomes are lagging behind. Specifically, house prices in the EU increased by 60.5% in the period 2015–2025, while rents also increased significantly, by 28.8% from 2010 to 2025.
In 2024, European households spent 19.2% of their disposable income on housing.
In cities, the pressure is even greater: 9.8% of urban residents spend more than 40% of their income on housing alone.
The EU needs almost one million new homes to fill the existing gap. However, construction activity is declining and costs have increased by 56% from 2010 to 2024, making the production of affordable housing increasingly difficult.
As recorded in the report, 85% of buildings in the EU were built before 2000, while 75% are low energy efficiency. The rate of energy renovations is only 1% per year, while energy poverty affects up to 16% of citizens.
Cities will concentrate 83% of the European population by 2050, which increases the pressure on housing and exacerbates inequalities.
The increase in institutional investors and short-term rentals (e.g. Airbnb) limits supply in the long-term market, placing a particular burden on tourist areas.
Our country is also low in rent increases
One of the most notable points of the report concerns Cyprus. In the 2010–2025 rent analysis, the first time such an extended period is used as a benchmark, Cyprus records a decrease. This "Cypriot paradox" differentiates it from the general European pattern of explosive rent growth and leads the European institutions to conclude that Cyprus is not experiencing a significant housing crisis based on cost indicators. Similarly, in the graphs concerning house prices (2015–2025), Cyprus records an increase of 13.71%, while the average in the European Union is 58.33%.
In other words, the EU sees Cyprus as one of the countries that are low on cost increases, in contrast to the Baltic states or Central Europe, where prices have skyrocketed.
The President of the Republic described the summit as "historic", since "for the first time the issue of housing was discussed at the European Council". An important step is the EU's decision to redistribute the existing funds of the Cohesion Fund to: Housing, Defence, Electrical interconnections. The President also announced that Cyprus will host an informal Council of Housing Ministers, set housing as a priority of the Cyprus presidency and make use of new tools of the European Investment Bank for lending to housing projects.
