The affordable housing programs launched in Cyprus in 2023 have attracted considerable interest from the population. In the first year of implementation, the Ministry of the Interior received over 560 applications from families and developers, confirming the growing need for affordable real estate solutions.
In response to parliamentary questions, Cyprus Minister of the Interior Constantinos Ioannou said that 525 applications had been received under the grant program for young people and couples under the age of 41. Of these, 152 have been approved, securing approximately €5.4 million in aid. Another 200 applications are under consideration, and some have been rejected.
Renovation for rent and housing market support
A separate part of the program is the Renovate-to-Rent scheme, which allows owners to renovate old properties for subsequent rental at affordable prices. Forty-three applications were submitted for this program, and 28 have already received funding totaling €727,000.
According to the minister, the initiatives aim to do more than help individual families. It is also important to reduce pressure on the housing market by increasing supply and stabilizing purchase and rental prices over time.
Participation of Developers and New Projects
The State Land Development Agency (KOAG) actively cooperates with private developers. For instance, KOAG has signed 16 agreements with developers to build 84 properties, 65 of which are for sale and 19 of which are for rent at reduced prices. KOAG completed the construction of 16 houses in 2023. Another 24 units are under construction for completion in 2024–2025, and more than 400 new apartments and houses will be available for sale and rent by 2026–2027.
Larnaca and Limassol are key development areas.
The Ianthi project is under construction in Larnaca. This residential complex will have 24 apartments and will be ready in September 2025. Some of the apartments have already been sold, and the rest are available for purchase. KOAG plans to build a similar complex with 16 apartments nearby.
Limassol's first social rental project has been launched in partnership with the municipality. Here, apartments with rents 25–30% below market rates will be available. The total budget for the project exceeds €100 million, and the first phase will include the construction of 138 apartments. Of these, 94 will remain under KOAG management and 44 will be transferred to the municipality.
Prospects and new development areas
Affordable housing programs will continue to develop. Projects are already planned in Nicosia, specifically in the areas of Ayios Dometios, Lakatamia, Palouriotissa, Kaimakli, and Kokkinotrimiti, as well as in the Pano Polemidia area of Limassol. By the end of 2027, hundreds of new housing units are expected to be built, which will help stabilize the real estate market in Cyprus.
During the first year of the programs, it became clear that the demand for affordable housing in Cyprus is high and continues to grow. In cooperation with developers and municipalities, the state is creating a new market segment: high-quality, affordable housing for young families, tenants, and low-income groups.
Cyprus is thus taking a step towards solving one of the most pressing social problems—the imbalance between high housing demand and limited supply—by creating sustainable living and investment conditions.