The role of investment visas in Cyprus in the context of the housing crisis: the need for rethinking

Introduction

Cyprus, known for its investment programs that attract foreign investors through the purchase of real estate, is facing growing concerns about the impact of these programs on housing affordability for local residents. Recent parliamentary discussions highlight the need to review existing regulatory mechanisms.

The growing interest of foreign investors in Cyprus real estate

According to the Department of Land Registry, from 2021 to 2024, foreigners purchased more than 35,000 properties in Cyprus. Buyers in Paphos, Limassol and Larnaca were especially active. This has led to a significant increase in housing prices, especially in urban centers, making it difficult for local residents to purchase real estate.

The shift of interest from luxury real estate to more affordable

After the termination of the Golden Passports program in 2020, foreign investors began to show interest in more affordable real estate, worth about €300,000, which meets the requirements for obtaining a residence permit. This change in demand puts additional pressure on the affordable housing market, exacerbating the problem of shortage for local residents.

Parliamentary discussion and possible regulatory measures

The Parliamentary Committee on Internal Affairs is considering the impact of investment programs on the real estate market. The possibility of introducing additional regulations to control the volume of foreign investment in real estate, especially in the affordable housing segment, is being discussed. The aim is to balance the interests of foreign investors and ensure affordable housing for Cypriot citizens.

Conclusion

Investment programs in Cyprus have played a significant role in attracting capital and stimulating the economy. However, the current situation requires a review of their impact on the real estate market and measures to ensure housing affordability for the local population. The balance between economic benefits and social needs is becoming a key issue for the country's sustainable development.