Cyprus Interior Minister Constantinos Ioannou presented two new measures on 9 September as part of the government’s housing policy. Their main goal is to increase the number of affordable properties available on the market.
The first scheme concerns owners of existing homes. Subject to certain conditions, they will be able to build an extension for their children or grandchildren, including in cases where the permitted building density of the plot has already been fully used. The additional space may be created:
- within the existing building;
- as a separate “wing”;
- by adding an additional floor;
- on an unused part of the plot.
The new home must not exceed 150 m2, while on larger plots, subject to the relevant conditions, the permitted area may reach 180 m2. Certain relaxations regarding parking requirements are also provided for such projects. At the same time, the new home cannot be sold for 10 years. An exception is provided for inheritance.
In practice, the government is offering families a way to make more efficient use of property they already own instead of purchasing a new plot or a separate house. The scheme will apply across Cyprus, with certain exceptions.
State-owned plots in Cyprus at 25% of market value
The second new programme provides for state-owned land plots to be offered at a price equal to 25% of their market value. The plots will be available to Cypriot citizens under the age of 45 who meet the established income, family and other eligibility criteria. The programme is intended for families with children, couples without children and single-parent families.
The main condition is that the plot must be used to build a home for the beneficiary’s own residence, rather than for rental or subsequent resale.
The authorities intend to place particular emphasis on mountainous, remote, rural and disadvantaged areas. Preliminary expressions of interest can be submitted through the chairpersons of community councils. Applications will then be forwarded to the District Administrations for assessment and preparation of the plots.
Around 570 plots are expected to be made available in the near future. Detailed guidelines setting out the criteria and conditions of both new housing schemes are expected to be published on the Ministry of Interior’s website in the coming days.
Which housing programmes are already operating in Cyprus
The new schemes supplement existing government housing measures. According to Ioannou, the support programme for young people and young families up to the age of 41 has already helped 700 beneficiaries, with total government spending amounting to €26 million. The authorities are considering relaunching the programme if the necessary financial resources are available.
Support programmes for residents of mountainous, border, rural and disadvantaged areas received 1,075 approved applications between 2023 and 2026, with a total value of €43 million. More than 6,500 additional applications were approved under programmes operated by the Service for the Care and Rehabilitation of Displaced Persons. Total funding for 2023–2026 amounted to €168 million.
At the same time, the government is preparing the construction of 460 homes on state-owned land. The housing is intended for young people and families and will be offered at affordable rental rates. The architectural competition has already been completed and standard designs have been selected.
More than 4,000 new housing units within 3 years
Another area of focus is expanding the supply of affordable housing through the Cyprus Land Development Corporation (KOAG). At present, 702 housing units are at the construction, licensing or design stage. Another 135 plots are being prepared for allocation. Through planning incentives and the Built to Rent programme, the authorities expect more than 4,000 housing units to enter the market within 3 years. Of these, 1,142 units are planned to be offered for affordable purchase or rent.
In addition, more than €22 million is expected to be allocated to KOAG’s special affordable housing fund. These funds will make it possible to create around 250 additional apartments and houses. The government is also accelerating building permit procedures. By the end of August 2026, under the fast-track licensing system, permits had been issued for 2,533 single- and two-unit homes within 40 working days, as well as for 1,242 apartment-building projects within 80 working days.
According to the Ministry of Interior, these measures affect more than 15,000 families, who will be able to obtain housing approximately a year and a half earlier. Cyprus’s housing policy is therefore gradually moving in several directions at once: the government is increasing the supply of affordable housing, reducing land costs for young families, encouraging construction and allowing more efficient use of existing property.