The lesson from Spain: the housing crisis cannot be solved with regulations alone

Spain's recent failed legislative package to address its housing crisis highlights the limits of regulatory intervention when supply cannot meet demand. While protection for tenants is important, experts and the Bank of Spain argue that excessive regulation risks driving property owners away, further tightening the market. This lesson is critical for Cyprus, which is now focusing on increasing housing supply through building permits, long-term rental initiatives, and incentivizing the renovation of vacant properties to ensure sustainable, affordable housing.