On Wednesday 16 April, the Cabinet of Ministers held a regular meeting at which officials approved new incentives for the construction of affordable housing - both for sale and for rent.
The announcement was made by Interior Minister Constantinos Ioannou.
According to Ioannou, the changes are aimed at improving the housing situation in the country and empowering property developers, especially in the context of accommodating foreign workers from third countries. The minister stressed that the changes will make the programme much more attractive to the construction industry and investors. In particular, they relate to:
- Enlargement of the eligible areas - it now covers not only residential areas, but also commercial and tourist areas and areas included in local development plans.
- Increasing the development ratio - in areas where the current ratio is below 100%, it has been increased to 35%, which will allow more efficient use of available land.
- Reducing the minimum plot size - development is now possible on plots as small as 2,000 m2 (previously more was required), opening up opportunities for projects in more compact areas.
Ioannou mentioned that the government intends to issue another decree in the near future, which will define the principles, criteria and control standards for applications to build collective housing complexes. The minister explained that such complexes are designed to provide short- and medium-term accommodation for certain groups of people, including foreign workers. They will play an important role in the smooth operation of businesses and support key sectors of the economy.
Today's decision brings us closer to implementing the comprehensive housing policy to which both the ministry and the government are committed," Ioannou said.
He added that the initiative 'will strengthen one of the main pillars of the housing policy - the expansion of the affordable housing stock through public-private partnerships'. At the same time, Ioannou separately highlighted the acute problem of housing shortage for foreign workers.
We are facing a huge shortage of housing for foreign workers. Under the new decree, we will define the minimum standards for dormitories: rooms with a bathroom, a common kitchen and a living room - up to eight people per accommodation unit,' the minister said.
Such solutions will allow companies to legally and comfortably house their employees in specially equipped accommodation units, similar to university halls of residence.
This will not only solve a pressing problem, but will also create new development opportunities that can also be used by families," Ioannou concluded.