Elena Koushou Hadjidemetriou: Overarching housing policy with new solutions and schemes on the way

The Cyprus Land Development Corporation (CLDC) is developing new solutions and schemes aimed at further enhancing access to housing for low-income earners and young families—through faster and more flexible procedures—in collaboration with the Ministry of the Interior and other competent authorities.

This is one of the main messages shared by CLDC President Elena Koushou Hadjidemetriou in an interview with InBusinessNews, where she also said that “the current government is approaching the housing issue through integrated, realistic and targeted interventions”.

She describes the CLDC's cooperation with the Ministry of the Interior and Minister Constantinos Ioannou as "ongoing and constructive", highlighting a shared understanding and joint commitment to supporting citizens— recognising housing as both a fundamental human right and a prerequisite for well-being.

She makes special mention of the CLDC project to be implemented in the Agios Nikolaos area of Limassol, describing it as pioneering, as it focuses on affordable rental housing.

In the interview, Koushou Hadjidemetriou also stresses the need to adapt Cyprus' development model to modern demands and capabilities, while cultivating a healthy and future-ready economic and business environment.

At the same time, she underlines the need to modernise the Cost of Living Allowance (CoLA) framework so that it better meets current worker needs and business capacities, while making the system more effective and useful, especially for those most impacted by inflation.

Housing crisis

One of the biggest challenges facing especially young couples today is housing—an issue that is clearly multifaceted. What do you believe are the ways to tackle it, and what role should the state play?

In recent years, a number of external factors have made housing one of the most pressing and complex social issues for our fellow citizens. Providing affordable, quality housing—especially for young couples and vulnerable groups—requires a multi-level approach.

The war in Ukraine, the pandemic, and other regional developments have driven up the cost of building materials and disrupted construction, reducing housing supply, while demand has remained high.

The state is addressing the situation with a comprehensive housing policy that includes incentives to increase supply—especially of affordable housing—and grants to strengthen the purchasing power of specific population groups.

A key component of this policy is the substantial upgrade of the Cyprus Land Development Corporation.

The CLDC’s role and ongoing projects

How important is the CLDC’s role in addressing the housing problem, and what measures or actions is it taking or planning?

The CLDC is now the government’s executive arm for housing policy. This is something we’ve worked hard to achieve in recent years—we proved our capacity, and the state has placed its trust in us.

We contribute by providing real solutions through various programmes—building and selling residential units at affordable prices, constructing and offering homes for rent at reduced rates, and allocating residential plots.

Together with the Ministry of the Interior and other authorities, we are working on new solutions and programmes to enhance housing access for low-income individuals and young families—implementing quicker and more flexible processes.

Partnership with the Ministry

As CLDC President, how would you evaluate the government’s efforts and your collaboration with the Ministry of the Interior?

All governments have historically shown support for the CLDC, within their financial capabilities. However, during the financial crisis, the CLDC was essentially inactive for an extended period.

The current administration is addressing housing needs through comprehensive, realistic, and targeted initiatives.

Our cooperation with the Ministry of the Interior—and personally with Minister Constantinos Ioannou—has been ongoing and constructive.

We share a common goal: supporting our compatriots by ensuring access to housing, a fundamental right and essential for prosperity. We jointly monitor the progress of different plans and, where weaknesses are identified, the Ministry introduces improvements to expand access for eligible beneficiaries.

The Limassol project: A first-of-its-kind collaboration

What makes the project in Agios Nikolaos, Limassol so special?

Several factors make this project both unique and pioneering. First, it emerged through a first-ever partnership between the CLDC and Limassol Municipality.

In the first phase, 138 apartments will be built—94 will be held by the CLDC and 44 by the Municipality, which provided the land.

It’s pioneering because it focuses on affordable rent—targeting individuals who cannot afford to buy property. Rents will be 30% lower than market rates, and the CLDC will be able to offer additional reductions for applicants in genuine need.

The scale of the project is also noteworthy: in total, the development will involve nearly 600 apartments in Limassol district.

Our goal is to provide real support to those who need it most, and we are now planning a similar affordable rental housing project in Nicosia.

Cyprus' development model and the role of SMEs

What is your broader assessment of Cyprus' development model? Does it need improvement, and if so, what would you suggest?

The Cypriot economy is currently performing well and has shown resilience to international challenges. However, rapid change around us requires timely adaptation—toward circular economy principles, sustainability, digital transformation, reduced bureaucracy, and social cohesion.

We likely need greater investment in research and technological innovation, enhancing the country’s strengths while addressing weaknesses—so we can remain competitive.

Small and medium-sized enterprises (SMEs) are the backbone of the Cypriot economy. What can be done to help them not only survive but thrive?

SMEs must modernise their operations and sales systems, upgrade technologically, and expand their products and services—continuously investing in quality.

Some may be hesitant to invest due to uncertainty, but the state must step in—creating a modern and supportive economic environment with more digital tools, less bureaucracy, and an emphasis on business education.

The Deputy Ministry of Innovation and the Research and Innovation Foundation should encourage innovation through funding and incentives. Support through EU funds, tax relief, and special schemes for startups and innovative businesses is also essential.

Green and digital transition

How can Cyprus successfully manage the green and digital transitions, and what role should the state play?

These transitions are no longer optional—for either the state or private businesses.

Environmental protection, sustainable development, and the integration of digital technologies into both the economy and public administration must become core priorities.

The goals should include lower energy costs, higher productivity, and greater efficiency, all driven by improved services and innovation.

At CLDC, we are already exploring green solutions for our upcoming projects, and digitizing our services is a top priority.

Addressing the cost of living

Although basic prices have stabilized somewhat in recent months, inflation remains a concern. How can this be addressed without undermining economic stability?

Rising costs affect everyone’s quality of life—particularly the most vulnerable: the unemployed, low-income workers, pensioners, large families, and single parents.

The state must create a protective net for these groups through targeted measures.

At the same time, we must maintain a balanced approach to preserve the financial stability achieved since the last crisis. Effective market regulation is also essential to prevent profiteering and encourage healthy competition.

Even citizens can play a role—by maintaining monthly or weekly household budgets. Small changes can make a big difference.

Time to modernise CoLA

There is currently a debate over the renewal of the Cost of Living Allowance agreement. What’s your view?

The discussion on inflation and its consequences highlights the importance of a mechanism to preserve purchasing power. So yes, CoLA is useful.

However, it needs to be modernised through social dialogue—to meet the needs of today’s workers and align with business capabilities. It must be more effective for those most affected by inflation.

Currently, high earners receive two to three times more from CoLA than low-wage earners, who are the ones struggling the most.

A reformed framework could also expand CoLA applicability to more—or even all—employees, which is not the case today.