The “ktízo” program was designed to help residents of old government housing complexes in Cyprus move into new and safer apartments. The government launched the program in April 2023 and allocated €130 million for the project.
However, progress has been much slower than expected. Of the 19 new apartment buildings planned to replace unsafe buildings, only 1 has been completed so far. Another building is expected to be handed over to residents in November. Members of Parliament consider this pace too slow and warn that if construction continues at the same rate, the entire program could take many years to complete.
Which buildings are included in the program
The program covers 358 apartment buildings in government housing complexes for displaced persons in areas controlled by the Republic of Cyprus. Following technical inspections, the buildings were divided into categories according to their condition:
- 245 buildings were found to be in satisfactory condition;
- 70 buildings require repairs and maintenance;
- 43 buildings have serious structural problems, making renovation impractical.
These 43 buildings are scheduled for redevelopment, with residents to be relocated into new housing. The official goal of the program is to provide safe living conditions and address the poor condition of the buildings. The program is designed to run for 10 years, with a total budget of €130 million for 2023–2033. Construction work is carried out by the private sector with government support.
Why construction is moving so slowly
According to Nikos Kettiros, chairman of the Parliamentary Committee on Refugee Affairs, if it takes around three years to complete just two buildings, delivering all 19 planned projects could take considerably longer. Another issue is the amount residents are required to contribute when moving into new housing. The personal contribution is:
- €10,000 for a 1-bedroom apartment;
- €20,000 for a 2-bedroom apartment;
- €25,000 for a 3-bedroom apartment.
This amounts to roughly 10% of the value of a new apartment. For many families, the cost is too high. For this reason, lawmakers have proposed considering subsidies for these contributions through the Central Agency for Equal Distribution of Burdens.
The state institution was established in 1989 to support people affected by the consequences of the 1974 Turkish invasion. Among other forms of assistance, the agency provides housing loans, interest subsidies and financial support. One of its sources of funding is a 0.4% levy on real estate sale transactions. However, no final decision has yet been made on compensating residents for their required contributions.
What happens next
Under the current scheme, private contractors are responsible for demolishing the old buildings, clearing the sites, removing hazardous construction materials and building the new housing. Additional delays are occurring at this stage. The reasons cited include:
- slow progress by contractors;
- rising construction material costs;
- individual disputes with residents over the required contributions.
At the same time, the program continues to move forward. Official 2026 documents emphasize that “ktízo” includes not only demolition and new construction, but also the repair or structural reinforcement of buildings that can be preserved. Special planning incentives for construction companies are also being used to help finance the projects. Next week, the Parliamentary Committee plans to invite the Minister of the Interior for further discussion of the program.
For residents of unsafe buildings, the issue remains especially important: they have to wait for relocation, while some families cannot afford an additional €20,000–€25,000 for a new apartment. Lawmakers believe that without faster construction and a solution to the co-financing issue, the program will not be able to provide safe housing to everyone in need on time.