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Cypriots struggling with the growing housing crisis can breathe a little easier, thanks to new government measures aimed at making homes more affordable and accessible. Interior Minister Constantinos Ioannou outlined a series of initiatives that aim to both increase the country’s housing stock and help citizens, particularly young people and families, to afford homes.
In a speech at a conference on housing policy, Ioannou explained that Cyprus' housing problem has become a significant social crisis. Rising construction costs, partly due to geopolitical instability like the war in Ukraine and global inflation, have added to the challenge. But despite these hurdles, the government is taking action to ensure more people can find affordable housing.
Developers who participate in this program receive incentives, like the ability to build more units, as long as some of those units are sold or rented at affordable prices.
One of the major initiatives is the “Build to Rent” program, which is already generating a lot of interest. The program is expected to produce around 1,900 housing units, with more than 280 of those set aside for the affordable housing market. This plan aims to create housing that is not only available but also reasonably priced for those in need.
The "Housing My Future" policy, which includes urban planning incentives, has also been a big part of the government’s strategy. Developers who participate in this program receive incentives, like the ability to build more units, as long as some of those units are sold or rented at affordable prices. This helps boost the housing stock and ensures that a portion of it remains within reach for lower-income Cypriots.
Ioannou also shared that more than €8.7 million has already been raised from these planning incentives, all of which will go directly into the government's Affordable Housing Fund, which finances housing programs for those in need. This initiative is expected to provide a much-needed financial boost for future housing projects.
However, not all the plans have gone as smoothly as expected. The “Renovate-Rent” program, which was supposed to encourage the use of unused housing stock, has seen mixed results. Though the plan offers tax breaks to those willing to renovate and rent out homes, only 32 applications have been submitted so far, and the response has been underwhelming.
Despite this, Ioannou remains optimistic, announcing that the government plans to roll out a total of 200 new housing units in 2025, in addition to an ongoing project in Limassol that will provide 138 affordable homes.
Another key focus of the government’s housing policy is boosting the purchasing power of young Cypriots and young families. Ioannou explained that financial assistance for people under 41 is being made available to help them get on the property ladder. So far, 320 valid applications have been received, with nearly 30 approvals already given.
The government is also working to revitalize mountain and rural areas by providing housing support in those regions. Since the launch of these programs, over €64 million has been distributed to help Cypriots in need of housing support, with more funds expected to be distributed in the coming months.
One significant measure in progress is the Concession of Plots Plan, which will allow low and middle-income families to purchase state-owned land at 25% of its value. This initiative will help more people in rural and underserved areas afford to build their own homes.
Additionally, Ioannou highlighted the government's efforts to streamline the process of obtaining building permits. In recent months, a faster and more efficient process has been introduced, allowing for planning and building permits to be issued within 20 working days for single-family homes and 40 working days for small apartment buildings. This is expected to reduce the bureaucracy that often delays new housing projects.
