Cyprus authorities plan to speed up property auctions by assigning asset evaluations to private specialists. This initiative is already part of the Ministry of Interior’s 2026 budget, presented to Parliament.
The new approach aims to reduce bureaucratic delays and increase the efficiency of selling foreclosed properties held by local banks. Involving private valuers is expected to ensure transparency and independence in determining market prices, as well as expedite the return of assets to the economy.
The ministry — which in 2026 will officially be renamed the Ministry of Interior and Civil Protection — emphasized that these changes are part of a broader reform of the country’s housing and land policy.
New Housing and Support for Young Families
The Cyprus government continues its active efforts to address housing shortages, especially for young families and low-income citizens. According to ministry forecasts, 1,476 new housing units will be delivered within two years, including 251 affordable units.
These projects are being implemented through the Cyprus Land Development Corporation (KOAG), which has already received €8 million from the sale of building incentives. The funds will be used to construct affordable housing for purchase or rent.
For 2026, €35 million has been allocated for housing programs, including developer incentive schemes and Build to Rent projects that offer additional building coefficients of 25% to 45%.
Fast Licensing and Cutting Bureaucracy
A key priority of the reforms is accelerating the issuance of building permits. Under the fast-track licensing program, 1,328 applications for private homes and 253 applications for apartment buildings and townhouses have already been reviewed. This will help more than 3,500 families resolve their housing needs in a shorter time.
To improve transparency and oversight of strategic projects, a new inspection unit will be created in 2026 within the Department of Town Planning and Housing. It will conduct on-site checks and ensure compliance with construction standards.
The ministry is also continuing with the modernization of the Land Registry, planning to reduce or completely eliminate many of the 150 outdated forms and applications to ease administrative burdens.
Funding for Municipalities and Regional Development
State grants to local authorities for the 2026–2028 period will total €439 million, or about €146 million per year. Of this amount:
- €15 million will go toward road repairs
- €12 million will compensate municipalities for lost revenue from building permit fees
For rural revitalization, more than €116 million is allocated for the same period, with an additional €16.7 million for the construction and modernization of public buildings. Furthermore, €55.5 million will be directed to village councils, while annual allowances of €9 million will continue to support more than 31,000 residents of mountainous and remote areas.
Support for Refugees and Preservation of Architectural Heritage
Funding for housing policy for displaced persons from the occupied territories amounts to €83.8 million for 2026, and €247.6 million for the entire 2026–2028 period. Next year, €6.5 million will also be allocated to the Turkish Cypriot Property Management Fund, with total spending reaching €19.5 million over three years.
The ministry will continue efforts to preserve historical architecture: in 2026, another 1,000 buildings will be added to the list of protected structures, bringing the total to 8,000. Under the Old Nicosia Revitalization Plan, €8.3 million has been earmarked for the creation of student housing, helping to revive the historic center of the capital.
Budget and European Funding
The total budget of the Ministry of Interior and Civil Protection for 2026 amounts to €779.7 million, which is €28.3 million more than in 2025 and nearly €130 million more than the actual expenditures in 2024. This includes:
- €107.7 million for personnel
- €54.4 million for operational expenses
- €322 million for transfers
- €110.8 million for co-financed projects
- €51.2 million for land acquisitions
- €113 million for ongoing construction
- €20 million for loans
The ministry manages €635.6 million in European funds under the 2021–2027 programming period, of which €482.7 million has been provided by the EU through internal policy funds, structural instruments, and agricultural programs.