Cyprus is developing a financial support program aimed at helping young couples and citizens under the age of 41 purchase their own homes. During the program's first two stages (2024 and 2025), 525 applications were submitted, and 152 have been approved thus far. The total amount of subsidies allocated exceeded €5.4 million. Two hundred applications are still under consideration, 172 have been rejected, and one has been withdrawn.
These figures confirm citizens' active interest in state assistance for solving housing issues. Cyprus' Minister of the Interior, Constantinos Ioannou, noted that the population's current response to affordable housing programs gives confidence in the correctness of the chosen course.
Renovation and rental as a way to return housing to the market
Along with purchase subsidies, Cyprus is actively implementing the “Renovate-Rent” program, which aims to add previously unused or dilapidated properties to the housing stock. To date, 43 applications have been received under this program, 28 of which have been approved, attracting around €727,000 in investment in the rental housing sector. The rest are either under review or have been rejected.
The government's goal is affordable housing and lower market prices
The Cypriot government is focusing on the strategic regulation of supply and demand in the real estate sector. The goal is to reduce the cost of buying and renting housing, as well as to provide easier access to real estate for young people and middle-income families. Particular attention is being paid to programs that increase market supply through public-private partnerships, including projects with urban planning incentives and the Build-to-Rent model.
The Cyprus Housing Authority (COAG) plays a key role in this process by developing new residential properties for sale and rent that the private sector would not build without government support.
Plans for the coming years include hundreds of new properties across the country
According to the minister, visible results from these programs are expected within a few years. Seven developers have already signed agreements to build housing worth around €5 million. A total of 16 agreements have been signed with private developers, resulting in 84 affordable housing units. Of these, 65 are for sale at reduced prices, while the remaining 19 are for rent.
In 2023, construction was completed on 16 properties, which were then put up for sale. Construction began on another 24 units in 2024, with completion planned for 2025. Additionally, KOAG has launched or will soon begin construction on 135 properties for sale and 36 for rent in 2025. Construction on 96 houses for sale and 156 houses for rent is scheduled to begin in 2026. These projects will continue in 2027, with the possibility of expansion depending on demand and financing.