In Cyprus, build-to-rent schemes could be part of the solution, especially in areas where housing demand is growing rapidly, without, however, being a miracle solution, Andreas Ibel, the President of Build Europe emphasises.
Build Europe is the umbrella organisation for national federations of developers and house builders, a European association representing more than 30,000 developers and house builders.
In an interview with InBusinessNews, Ibel explains that the key is to create the conditions for building more housing overall, noting that, without more supply, housing affordability will remain a problem.
As Ibel points out, build-to-rent projects can help increase the number of available rental homes, especially for young people, families and workers, who cannot afford to buy a home, clarifying, however, that for these projects to work, investors and developers need stability and simple rules.
At the same time, the President of Build Europe notes that Europe needs more housing of all types and in all market segments, pointing out that if more housing is built, then acquiring housing will become more affordable.
How do you evaluate the build-to-rent schemes implemented in Europe? Can they contribute to addressing the housing problem in European countries, and particularly in Cyprus?
Build-to-rent can help, but it is not a miracle solution. The real issue across Europe is that we simply do not build enough homes. Demand is growing faster than supply, especially in big cities, and this pushes prices and rents higher.
Build-to-rent projects can help increase the number of rental homes available, especially for young people, families, and workers who can’t afford to buy a house. They also tend to offer good-quality, energy-efficient housing managed for the long term. But for these projects to work, investors and developers need stability and simple rules. If permits take too long, regulations change constantly, or construction becomes too expensive, fewer projects will happen.
In Cyprus, build-to-rent could be part of the answer, especially in areas where housing demand is growing quickly. But again, the key is to create the conditions to build more homes overall. Without more supply, affordability will remain a problem.
What should an EU policy framework include in order to enable the implementation of large-scale projects?
The main priority today is to create the right conditions to build more homes, faster and at lower cost. Europe already understands the scale of the housing problem, but the real challenge is implementation.
One of the biggest obstacles is too much regulation and too much bureaucracy. Across Europe, housing projects are slowed down by complicated rules, endless permitting procedures, overlapping requirements, and legal uncertainty. In some cases, it can take years before construction even starts. That clearly does not help in the middle of a housing shortage. Our sector fully supports climate goals, but rules need to be realistic and affordable. Every new obligation adds costs, and those costs eventually end up in the final price or rent paid by citizens.
We also need a more honest discussion about affordability. Affordable housing does not mean exclusively social housing. Europe needs more housing of all types and in all segments of the market. It is very simple: if we build more homes, affordability improves.
That is why I believe that EU policymakers should absolutely avoid putting additional obligations on private housing projects, such as inclusionary zoning rules or mandatory below-market quotas. If projects become financially impossible, private investment will simply go elsewhere, fewer homes will be built, and the shortage will get worse. Instead, the EU should focus on creating stable conditions for investment, improving access to financing, supporting innovation in construction, and helping the sector build faster and more efficiently.
And finally, I’d like to point out that there is a serious shortage of skilled workers in construction across Europe. Without enough people to build homes, even the best policies will not deliver results.
So, at the end of the day, the objective is very simple: make it simpler to build more homes in Europe.
Do you believe that the EU needs a comprehensive common housing policy, or rather a policy that takes into account the particularities of each member state?
Housing markets are very different across Europe, so I do not think a single housing policy designed in Brussels would work everywhere. The situation in Cyprus is very different from Germany, Sweden, Spain, or Poland. Every country has its own planning system, legal framework, housing culture, and market conditions. National governments and local authorities are much closer to these realities and should remain responsible for housing policy.
But the EU still has an important role to play. Europe needs to help member states make it easier and faster to build homes, especially by cutting unnecessary bureaucracy and speeding up permits. As I explained before, today, in many countries, housing projects are stuck for years in administrative procedures before construction can even start. That is unacceptable when Europe is facing a very serious affordability crisis.
So, I think the EU should encourage policies that increase housing supply, especially in areas where shortages are most severe. At the same time, the EU should discourage policies that make development more difficult, slower, or too expensive to deliver.
Rather than one centralised European housing policy, what we need is a common direction at EU level, with enough flexibility for each country to adapt solutions to its own needs and realities.
