The Cypriot government has announced the launch of a new housing initiative that will allow private companies to build compact apartments to accommodate their employees. The initiative was presented by Interior Minister Constantinos Ioannou on Wednesday, December 10. The decision was made following consultations with the island’s leading business associations, including the Chamber of Commerce and Industry and the Federation of Employers and Industrialists.
According to the Interior Minister, the project will allow private companies to construct multi-storey buildings with micro-apartments, providing incoming employees with “decent living conditions.” This approach is expected to gradually reduce the imbalance between supply and demand and, in the long term, stabilize real estate purchase and rental prices in Cyprus.
What the New Housing for Private Company Workers Will Look Like
Under the new scheme, the government has significantly eased technical requirements for specialized buildings. Employers will be granted permits to construct residential complexes with apartments that are half the size of conventional standards:
- 1-bedroom apartment: 27 m²
- 2-bedroom apartment: 34 m²
- 3-bedroom apartment: 47 m²
- 4-bedroom apartment: 58 m²
- 5-bedroom apartment: 67 m²
- 6-bedroom apartment: 79 m²
- 7-bedroom apartment: 88 m²
- 8-bedroom apartment: 99 m²
- 9-bedroom apartment: 110 m²
- 10-bedroom apartment: 119 m²
- 11-bedroom apartment: 131 m²
- 12-bedroom apartment: 140 m²
This approach will reduce construction costs and shorten the time needed to complete apartment buildings. For every six bedrooms, one car parking space will be required, and for each bedroom, one parking space for a bicycle or scooter.
The residential modules may be built both in commercial zones and by adapting existing buildings. Minimum standards have been set to ensure functionality, safety, and comfort for future residents. This is especially important for employers facing staff shortages who aim to provide their employees with acceptable living conditions near their workplace.
Business Reaction and Prospects
The housing program has received support from the business community. The Director General of the Cyprus Federation of Employers and Industrialists, Michalis Antoniou, noted that companies from nearly all sectors of the economy — including retail, the restaurant industry, tourism, manufacturing, and construction — have shown interest in the project.
Experts believe that this scheme could become an important tool for attracting foreign workers amid rising demand for personnel and growing international competition for skilled labor. It may also help reduce rental costs in the traditional market segment and partially stabilize housing prices in popular cities such as Limassol, Larnaca, and Nicosia.
The Ministry of the Interior is preparing a final document outlining the detailed minimum requirements for the new residential units. The official directive is expected to be published in the coming days, after which companies will be able to apply and begin the design phase.