Cyprus’s Minister of the Interior, Konstantinos Ioannou, stated that addressing the housing issue will be one of his ministry’s top priorities for 2027. He noted that the government plans to increase the supply of affordable housing, support young families, and assist residents of rural and less developed areas.
More than 70 million euros for housing programs and 460 rental homes
In 2027, the government plans to allocate 32.5 million euros to state housing programs. The government expects to receive an additional 22 million euros through urban development incentives and the Build to Rent program.
An additional contribution amounts to approximately 17 million euros. This is the estimated value of 523 land plots planned to be transferred to families under a special program. Thus, the total amount of government support for housing policy will exceed 70 million euros.
One of the largest projects involves the construction of 460 affordable rental homes on state-owned land. The housing will be built in four districts: Nicosia, Limassol, Larnaca, and Paphos.The project is planned to be implemented with co-financing from the European Union. Construction is expected to begin in December 2027, with the project scheduled for completion in April 2031.
At the same time, the ministry will continue the “Renovate–Rent” program. It aims to renovate existing homes and return vacant housing to the rental market. Programs to build dormitories and student housing are also planned.
Land Plots and Assistance for Young Families
In 2027, the government plans to provide families with 523 land plots in various municipalities across Cyprus. The land will be transferred for 25% of its total appraised value. The program is intended to help families acquire land to build their own homes, as well as to support the development of small communities.
A separate initiative focuses on housing support for mountainous, border, and less-developed regions, as well as rural areas. In 2027, 20 million euros will be allocated for these purposes—5 million euros more than previously.
From 2019 through September 2026, 2,400 applications were approved under this program. The total amount of assistance provided was approximately 91 million euros.
The support program for young people and couples under the age of 41 will also continue. To date, 700 people have received assistance, and total program expenditures have reached 26 million euros. The ministry intends to announce a new call for applications for a specific number of recipients.
Refugee Support, Construction, and Other Expenses
€85.7 million has been allocated for housing policy for refugees in 2027. The funds will be allocated for housing subsidies, rent assistance, home repairs, and infrastructure improvements in public housing areas and settlements for displaced persons.
The “KtiZo” program, which focuses on the renovation of residential buildings, will also continue. Its total budget for the three phases amounts to 105 million euros. In 2027, €16 million is planned to be allocated to the program—compared to €11 million in 2026 and €7 million in 2025.
According to the ministry, updated rules for housing programs for refugees have increased the number of potential beneficiaries by 15%. For 2027, 42.6 million euros have been allocated for these programs. In addition, the ministry plans to revise the criteria for granting housing rental subsidies.
Changes have also been made to the processing times for building permits. Approximately 3,000 permits for the construction of single-family homes and duplexes have already been issued within 40 business days. More than 1,400 building permits for apartment buildings with a maximum of 20 units were processed within 80 days. Other major budget expenditures include:
186.5 million euros — government subsidies to local authorities.
17.8 million euros — civil protection, including the upgrade of the CY-Alert warning system and the development of the new NG112 emergency communications system.
€85.7 million — housing support for refugees.
Overall, the Ministry of the Interior’s 2027 budget covers not only the construction of new housing but also support for families, rural development, assistance to refugees, and the modernization of public services. One of the main projects—460 affordable rental homes—is intended to increase the housing supply; however, the first construction work is not scheduled to begin until December 2027.