It has been realized in the market, that there is a large shortage of housing units for rent, as well as a large increase in rental prices.
Some of our suggestions for mitigating the problem are as follows :
1. Thousands of apartments have been built in Larnaca over the last 5 years, which remain closed without being rented. This is for 2 reasons.
Most buyers turned to the VAT service for a reduced rate from 19 to 5%. If someone wants to rent their apartment legally, they have to pay an additional 14% VAT. A special regulatory arrangement could be made whereby the owners pay a fine, for example € 3,000, and put their apartment for rent.
This could immediately create hundreds of units for rent at reasonable prices, due to increased offers.
The government has taken similar measures many times in the past. For example. The measures they had to take to reduce electricity production pollutants, the creation of sewage treatment plants, projects they failed to fulfil, and now pays a fine to the European Union.
2. The correction to the distortions of the law, which some people unfortunately without scepticism, exploit and do not pay rent to owners. Too many apartments and houses are closed without any reason to rent. Correcting the law can also create many new units for rent and at the same through offers the prices could be corrected and reduced.