Against the backdrop of an acute housing crisis, record-high rental rates, and growing pressure on households and young professionals, a significant part of Cyprus’s existing building stock remains unused. Thousands of buildings stand empty, while the discussion about sustainable development increasingly remains at the level of declarations. The question of why these properties are not returning to the market and what exactly prevents owners from renovating them—forcing them to choose demolition instead of renewal—is becoming ever more relevant.
The issue of building reuse is being actively discussed not only at the national but also at the European level. Recently, architectural researcher Dr. Elena Limbouri-Kozaki and the chairman of the Association of Certified Real Estate Valuers, Polis Koursidis, described in detail the situation in Europe and outlined the key barriers characteristic of the Cypriot market.
EU pressure and Cyprus’s actual figures
According to Limbouri, the construction sector is among the most energy-intensive industries, accounting for more than one third of all emissions related to energy consumption. Taking this fact into account, as well as the life cycle of building materials, the European Union assumes that 85%–90% of the buildings that exist today will continue to be in use in 2050.
It was in this context that the pan-European Renovate initiative was launched in 2020, aiming to renovate and reuse up to 35 million buildings across Europe. The program focuses not only on reducing the carbon footprint but also on creating tens of thousands of “green” jobs.
However, in Cyprus the situation remains difficult. For the period 2026–2031, a target of reusing 3,365 buildings has been set, but current data does not inspire optimism. The state program “Renovate-Rent,” which has completed its first cycle and is now in its second year of implementation, has shown a weak response: only 63 applications were submitted, of which just 38 were approved.
“We are far behind”: the gap between strategy and reality
Dr. Limbouri described the current situation as a clear demonstration of the gap between declared goals and reality. According to her, Cyprus is “very far behind,” because before setting quantitative targets, it is necessary to conduct a thorough assessment of the entire building stock of the country and develop a clear strategy for its use.
She paid special attention to the need to diversify housing formats. Apart from student dormitories, which in some cases have indeed produced positive results, housing formats for elderly people are practically undeveloped. This is especially relevant against the backdrop of an aging population and increasing life expectancy, which makes this segment promising but so far ignored.
When reuse runs into bureaucracy
Koursidis, in turn, emphasized that the benefits of building reuse are multifaceted. These include environmental, urban planning, and economic advantages. The environmental footprint of new construction is significantly higher compared to the reconstruction of existing properties, while the preservation and adaptation of buildings contribute to the revitalization of city centers. It is no coincidence that the professional community increasingly voices the formula that “the greenest building is the one that already exists.”
Nevertheless, in practice, Cyprus’s state policy, according to him, does not encourage but often complicates the renovation process. One typical example is the strict requirements when changing the use of a property. Thus, when converting office space into residential units, owners face obligations to create parking spaces without the option to buy them out, which makes projects economically unviable.
Lack of incentives and the choice in favor of demolition
The chairman of the Association of Valuers questioned the realism of the target of more than 3,000 renovations in the absence of real incentives for property owners. In many cases, financial calculations show that demolishing an old building and constructing a new one, especially on plots with a high building density coefficient, turns out to be a more profitable option.
Among the measures being discussed are proposals for tax incentives on renovation expenses, as well as urban planning concessions, including an increase in the building density coefficient if reuse leads to the creation of housing. The practice of using unused building potential is also mentioned, which is already applied to listed buildings and could be extended to other categories of real estate.
Architectural heritage, rent, and housing demand
The issue of building reuse affects not only ecology and housing affordability but also the preservation of architectural and cultural identity. Limbouri drew attention to the fact that modernist-era buildings in Cyprus are often demolished as “economically unviable,” which leads to the loss of a significant part of the country’s contemporary history.
At the same time, returning vacant properties to the market could increase housing supply and partially reduce pressure on rental prices, as confirmed by international practice. However, without a revision of existing approaches and the system of incentives, these opportunities remain unrealized.
As Koursidis noted, younger generations increasingly strive to live closer to city centers. The question of whether Cyprus will be able to use its existing building stock to respond to this demand and alleviate the housing crisis remains open for now.