On Thursday 24 April, the Council of Ministers of Cyprus approved new annual income criteria for citizens wishing to participate in the social programme of the Cyprus Organisation for Land Development (KOAG).
According to the new rules, low-cost housing will now be provided if the annual income does not exceed:
- 30,000 euros (previously 25,000euros) - per person;
- 50,000 euros (previously 45,000 euros) - for a family without children;
- 55,000 euros (previously 50,000 euros) - for a family with one child;
- 60,000 euros (previously 60,000 euros) - for a family with two children;
- 70,000 euros (previously 65,000 euros) - for a family with three or more children.
Incidentally, the Cypriot government has decided to raise the income limits by 5,000 euros. People who meet the criteria of the scheme will be able to buy homes at much lower prices than those currently offered on the Cyprus property market. In the first stage, buyers will have to contribute 20% of the total cost and the remaining 80% at the time of delivery of the property.
It should be recalled that the KOAG programme provides for the design, construction and sale of houses and land to beneficiaries on the basis of income criteria and family composition.
The new solution aims at widening the circle of beneficiaries, especially among young families facing difficulties in the housing market. The Cypriot Interior Ministry said the revision of the criteria was prompted by current economic and social realities and is in line with recent changes in similar programmes.
The increase in income limits is aimed at enabling more households to access affordable housing that meets their needs. This step is also part of a broader and more systematic housing policy of the State aimed at alleviating the housing crisis, which is particularly acute among socially and economically vulnerable groups," the authority stressed.
According to the authorities, the decision will be an important tool in addressing the shortage of affordable housing in Cyprus and will complement efforts to create a sustainable housing market where Cypriots will have a better chance of finding housing at an affordable price.
It is worth noting that the Cyprus Organisation for Land Development (KOAG) is responsible for the implementation of the construction. The organisation was set up in 1980 to facilitate the purchase of housing for families and individuals on medium and low incomes. To this end, KOAG buys land on which it builds low-cost housing.