Homeowners and renovators in Cyprus’s mountain areas and communities along the buffer zone can now access up to €100,000 in combined government assistance. Interior Minister Konstantinos Ioannou announced the enhanced housing schemes, which allow applicants to combine Interior Ministry grants of up to €70,000 with Energy Ministry grants of up to €30,000 for energy upgrades; a first for Cyprus.
The government aims to increase housing supply, reduce costs, and simplify construction processes through boosted grants, faster licensing, and relaxed rules for student accommodation.
Bigger grants and easier access
Between 2019 and 2025, 2,892 applications were submitted for mountain, buffer zone, and disadvantaged area schemes, with 2,027 approved for a total of €77 million. Now, maximum grants rise by €5,000 for all rural scheme recipients and family types. Income limits increase by €5,000, and large families get an additional €5,000 depending on the number of children. Displaced persons receive a further 20% on top of standard grants.
The requirement for continuous residency in Cyprus has been removed, and applicants can finally combine housing grants with energy upgrade grants. Applications open 2 March 2026 and run until 31 December 2027.
“Renovate-Rent” scheme relaunched
The “Renovate-Rent” scheme is relaunched with improved terms after a weak first round. Grants per unit increase by €5,000. Offices and commercial spaces can now convert to housing with a change of use approval, and the scheme extends to buffer zone and rural areas. Electricity consumption limits rise from 200 to 500 kilowatt-hours per year, and tenant income limits increase by €5,000.
Easier student housing rules
Student accommodation rules have been relaxed to allow units of up to 10 rooms with significantly smaller space requirements. A five-room unit can now occupy just 77 square metres. Reception areas, storage, and strict parking requirements have been reduced. Units must be within one kilometre of a registered tertiary institution and can be standalone or part of mixed-use developments.
State developer and private sector boost
The Cyprus Land Development Corporation, reactivated with €28 million in state funding, will deliver 244 affordable sale units and 192 rental units in 2026. It is also subdividing 135 plots in Nicosia, Larnaca, Limassol, and Paphos. Private developers have submitted 39 applications using new incentives, producing over 2,500 units in the next two years, including 275 affordable homes. Additional funds from building rights sales (€11.5 million) are reinvested in affordable housing for low-income groups.
Accelerated licensing cuts delays
Digital licensing reforms have reduced approval times dramatically. Over 2,000 applications for up to two homes were approved within 40 working days, and 627 applications for apartment buildings up to 20 units were processed in 80 days. This acceleration brings over 5,500 units closer to construction, helping to ease market prices sooner.
Also read: Student housing and rural incentives drive affordable housing
For more videos and updates, check out our YouTube channel
