Major Amendments to Cyprus Incentives Scheme Accelerate Affordable Housing

In a decisive move to address Cyprus’ persistent housing shortage, the Cabinet recently approved significant modifications to a special incentives scheme designed to boost the supply of affordable homes.

The revised framework not only raises new prospects for construction companies but also responds to the increasing demand for reasonably priced apartments among international workers.

More Appealing Incentives for Property Developers

According to Interior Minister Constantinos Ioannou, the scheme has been expanded to draw stronger interest from developers. By broadening where residential builds can occur and easing some requirements, the government aims to spur more housing projects across diverse zones.

“This Cabinet decision is a major step forward in establishing a robust housing policy,” Ioannou remarked.

Key Updates in the Revised Scheme

• Greater Reach: Commercial and tourist areas where residential works are permissible now qualify.
• Expanded Zones: Additional regions adjacent to Local Plans, as specified in the national Policy Statement, can participate under set conditions.
• Higher Building Coefficient: For areas that can leverage multiple benefits, the maximum building coefficient rises from 30% to 35%.
• Smaller Plot Requirement: In zones with a coefficient below 100%, the minimum net plot size drops from 3,000 sqm to 2,000 sqm.

Introducing New Guidelines for Collective Housing

In tandem with these changes, authorities are rolling out a directive to guide the creation of collective living complexes, primarily catering to foreign employees.

“These units are meant for short or medium-term stays, targeting specific workforce segments,” Ioannou explained, noting the anticipated support for businesses and essential economic sectors.

The directive will detail minimum room sizes, en-suite bathrooms, and shared facilities for up to eight occupants, resembling student residence designs.

Easing Market Pressures & Building for Tomorrow

By dedicating alternative housing to foreign workers, the plan aims to ease housing market stress and free up conventional homes for locals.

Minister Ioannou maintained that bolstering the housing stock through strategic public-private cooperation is a principal focus, asserting:

“Our ministry stays resolved in providing workable solutions that will gradually reduce the housing crunch affecting our citizens.”

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