Newsroom
Rents in Cyprus have risen to levels comparable with monthly mortgage payments, prompting more people to buy homes rather than rent, even when rent subsidies are available, Interior Minister Konstantinos Ioannou said.
According to government data, applications for rent subsidies have declined over the past three years, while applications for home purchase or construction schemes have increased. Rent subsidy beneficiaries fell from 4,509 in 2022 to 3,155 in 2024, a trend authorities attribute to sharp increases in rental prices that have narrowed the gap between rent and mortgage installments.
To ease pressure from rising rents, subsidy amounts were increased by about 15% at the start of 2024. The Rent Subsidy Scheme is also under review, with a bill already submitted to the Legal Service aimed at modernizing the framework governing eligibility and assessment criteria.
The review follows a parliamentary inquiry highlighting that income criteria for the scheme have remained unchanged for more than 15 years and no longer reflect current socioeconomic conditions. Lawmakers also raised concerns that outdated thresholds may be excluding potential beneficiaries.
Ioannou said more than 90% of the rent subsidy budget has been absorbed on average over the past three years, with remaining funds redirected to other housing schemes, particularly those supporting home purchases, construction and repairs, where demand exceeds initial budget allocations.
Cyprus’ rental market has seen rapid growth nationwide, pushing rents to levels many households struggle to afford. The housing strain mirrors a broader European trend and comes as the European Union advances a common housing policy focused on reducing bureaucracy and supporting vulnerable groups, young people and young families.
The Interior Ministry is reassessing several housing programs to evaluate their effectiveness. Planned revisions include the “Renovate–Rent” scheme and incentives for mountainous and rural areas, while other housing and planning schemes are expected to continue through 2026. A housing program aimed at people up to age 41 is not expected to be renewed.
