A significant lack of affordable housing is preventing major corporations from relocating their headquarters to Cyprus, according to the Mediterranean island’s Association of Large Investment Projects.
According to a Cyprus Mail report, the association declared that a “critical concern is maintaining Cyprus’ appeal as a destination for corporate headquarters, which necessitates prioritizing housing for employees of large companies … the current housing shortage has become a major deterrent to relocating corporate headquarters to Cyprus.”
The association stated, “Establishing corporate headquarters in Cyprus enhances the overall economic product of the island,” adding that having major corporations on the island would “generate new jobs, foster technological innovation, and bolster the local economy.”
Additionally, it noted that “these headquarters capture international business interest and are pivotal in enhancing trade and investment in Cyprus. On a political level, it enhances the business climate and eases investment. Economically, it increases the country’s competitiveness, contributing to rises in employment, GDP, and commercial activities.”
The association said the Cypriot government could enable the creation of new employee housing by foreign companies with incentives including an increase of the building rate in designated areas. The association also called on the government to cut the red tape in the housing development licensing system.
“Despite attempts to streamline processes, the transition to newly established environmental impact assessments continues to delay approvals,” it said. “These delays exacerbate the housing crisis and inflate prices, creating barriers to attracting new investments and, by extension, headquarters … The delays have proven to be detrimental to Cyprus’ competitiveness, obstructing investment opportunities that could significantly benefit the local economy and Cypriot society. These unresolved issues could severely impact the country’s economic and strategic objectives.”
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