Nicosia, Cyprus. Affordable housing has become “one of the greatest social challenges of our time,” according to Mersina Isidorou, general manager of the Cyprus Property Developers Association, who described it as a pan-European crisis affecting countries broadly across Europe.
Impact on households and young people
Isidorou said that from “large metropolises to smaller member states,” rising housing costs are “testing the resilience of households, intensifying social inequalities and limiting the ability of young people to plan their future with security and perspective.” She added that Cyprus “is no exception to this European reality.”
Cyprus outlook and association priorities
According to Isidorou, the housing problem “has been affecting a large part of society for years, especially young people and young families, creating an environment of insecurity and uncertainty.” She said addressing the issue is a priority for the association through “documented proposals” and cooperation with the state and relevant bodies to develop “realistic and sustainable solutions that respond to the real needs of society.”
Eurostat figures and EU trends
Isidorou said the housing crisis across Europe is affecting “the daily lives of millions of citizens” and is becoming “one of the most important social and economic risks of our time.” She said available data confirm the intensity of the phenomenon.
Citing Eurostat, Isidorou said that from 2015 to the third quarter of 2025, house prices in the European Union rose 63.6% while rents increased 21.1%. She said that in the second quarter of 2025, the House Price Index recorded an average annual rise of 5.4% at EU level.
Supply and demand imbalance
Isidorou linked the situation to a long-term supply-demand imbalance, saying that in many European countries the production of new housing falls short of actual needs, with limited supply contributing to rising prices.
How do rising housing costs affect your ability to plan for the future?