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Cyprus’s housing crisis, mirroring a wider European struggle, has left young people increasingly unable to move out of their parents’ homes. According to an article by Kathimerini's Panayiotis Rougalas, the Ministry of the Interior is preparing a new round of housing schemes to take effect in early 2026, extending efforts to make home ownership more attainable amid soaring prices.
Since 2019, Cyprus has granted nearly €80 million in housing subsidies under various programs aimed at revitalizing mountain, border, and disadvantaged areas, as well as supporting young people and families under 41. These programs, particularly popular in rural and border regions, have offered some of the most generous assistance available, combining state grants with lower property prices.
A new Cabinet decision guarantees an additional 20% subsidy for eligible displaced persons under the revitalization plan, which expires at the end of 2025. Some communities will also be reclassified to allow for higher grants. While most eligibility and aid criteria are expected to remain unchanged, the government is weighing further amendments before next year’s rollout.
Whether the housing support plan for young people, set to end in November 2025, will be renewed remains unclear. The plan, which budgeted aid for 400 beneficiaries, has already distributed €9.6 million to 261 approved applicants.
From 2019 through September 2025, the state approved over 2,000 housing applications under revitalization schemes, channeling €71.6 million into rural, border, mountain, and exceptional categories. The largest share, €44.8 million, went to border communities.
The Ministry, which oversees and manages all housing programs, came under fire in 2024 over income eligibility limits. Following public criticism during a period of steep interest rates, the government raised the individual income cap for aid from €25,000 to €30,000, with proportional increases for dependents.
Across Europe, rising housing costs are pushing young adults to stay longer at home. According to Eurostat, the average European leaves the parental household at 26.2 years, rising to 27.2 in Cyprus. The European Commission estimates housing prices in Cyprus have risen 12.6% between 2015 and 2024, a figure local observers say grossly underplays reality, particularly in cities like Limassol, where prices have “skyrocketed.”
As policymakers prepare new incentives for 2026, the question remains whether state aid can keep pace with a housing market increasingly out of reach for Cyprus’s young generation.
