Interior Minister Konstantinos Ioannou has outlined the government’s housing policy, including new measures aimed at increasing housing supply and improving access to affordable homes.
Speaking on the “Mesimeri kai Kati” programme, Ioannou said a comprehensive housing policy has been in place for the past two years and is beginning to produce measurable results.
He said the main objective is to increase housing supply, as demand in Cyprus continues to exceed availability, while higher construction costs are putting additional pressure on prices.
Thousands of new homes in the pipeline
Ioannou said around 4,100 new residential units are currently being licensed or have already received planning approval through planning incentives.
Of these, around 1,150 units are expected to be made available as affordable housing or rental properties.
The minister also highlighted the renewed activity of the Cyprus Land Development Corporation, which currently has 702 residential units that have either been completed, are under construction or have received planning approval. It also has 135 plots available for residential development.
However, Ioannou stressed that the housing crisis cannot be addressed immediately, as the construction of new homes takes time.
“The problem with the housing crisis is that the problem exists now. The solutions are in one, two, three years, before these units are built,” he said, noting that some homes are expected to enter the market within the coming months, while others will become available over the next two years.
Affordable apartments on state land
The minister also referred to plans to build affordable apartments on state-owned land, which will be offered at very low rents.
The programme covers around 460 apartments across all districts. The architectural competition has already been completed and awarded, while the project is proceeding according to schedule with a budget of €180 million.
Ioannou also highlighted the reform of the fast-track planning approval system.
Under the new system, homes that do not require planning derogations can receive approval within 40 days, while apartment buildings can be approved within 80 days.
According to the minister, almost 2,600 homes have already been approved within 40 days and 1,253 apartment buildings within 80 days.
He said this means around 15,000 apartments and homes could enter the market at least 18 months to two years earlier than under the previous system.
Support for young couples and vulnerable groups
A second key pillar of the housing policy focuses on strengthening citizens’ purchasing power, particularly among young couples and vulnerable groups.
Ioannou said 702 beneficiaries have so far received financial assistance of up to €50,000 to purchase or build a home.
He also referred to the scheme supporting mountainous and remote areas, through which €43 million has so far been provided for 1,075 applications, as well as housing schemes administered by the Welfare Service for displaced people.
Plots offered at 25% of market value
Turning to the newly announced measures, Ioannou outlined a programme for providing plots in communities where state-owned land is available.
Where there is interest from at least 10 people, plots can be allocated to eligible beneficiaries at 25% of their market value, excluding the cost of subdivision.
Applicants must meet specific income criteria, permanently reside in the community or within 15 kilometres of it, and not own another home or plot.
The minister said 570 subdivided plots in around 25 communities are already ready for allocation.
The locations and plots are expected to be published, after which applicants will have two months to submit their applications.
Once applications have been assessed, the plots will be transferred to successful applicants, who will pay 25% of their value and have three years to construct a home.
Additional floor for family housing
The second new measure will allow an additional floor to be built on existing homes, even where the permitted building density has already been exhausted.
Ioannou clarified that the measure applies only to houses and not apartment buildings. The additional floor will be intended to meet the housing needs of members of the same family, such as children or grandchildren.
The maximum permitted floor area will be 150 square metres, rising to 180 square metres for larger families.
The existing home must be legally licensed and structurally capable of supporting the additional floor.
Only one additional floor will be permitted, the minister said, in order to avoid creating new planning problems.
He said the measure has both a social and economic dimension, allowing families to make better use of existing property, reducing the cost of purchasing a plot and helping limit part of the construction expense.
Wider challenges for communities
Ioannou said the measure could also help retain population in communities and attract new residents.
The measure will apply across Cyprus, with exceptions for areas of special character, listed buildings and locations where residential development is not permitted.
The minister acknowledged, however, that housing is not the only challenge facing people considering moving to communities.
Infrastructure, employment, schools and other services also play an important role, he said.
According to Ioannou, the state is working to strengthen communities through policies covering areas including education and economic activity.
Also read: Government housing schemes: Plots at just 25% of their value
For more videos and updates, check out our YouTube channel
