Since the launch of affordable housing schemes in Cyprus last year, the island has seen a surge in applications, with over 560 submissions recorded. The majority of these come from young couples and families eager to benefit from the state aid programs designed to alleviate housing challenges.
The Interior Minister, Constantinos Ioannou, reported responding to parliamentary inquiries that 525 applications have been registered under the young people and couples grant, which is available for applicants up to 41 years old. Out of these, 152 have been approved, channeling approximately €5.4 million directly into the housing market. Meanwhile, 172 applications were rejected, one withdrawn, and 200 remain under review.
In parallel, the Renovate-to-Rent scheme attracted 43 applications, with 28 receiving approval amounting to €727,000 in funding. Six applications are currently pending and nine were turned down.
These initiatives are designed to boost not only individual homeownership but also to stimulate supply in a market that has been under pressure for some time. Government efforts aim to close the gap between housing supply and demand, which could lead to more balanced property prices and rental costs.
Alongside these grants, supporting projects and incentives such as the Build to Rent programs and those led by the Cyprus Land Development Corporation (KOAG) will contribute fresh homes in the years ahead.
KOAG has been proactive, signing agreements with private developers for 84 units — 65 slated for sale and 19 for affordable rent. Their own housing pipeline includes 16 homes completed in 2023, with 24 under construction due for delivery by 2025.
Looking ahead, KOAG plans to initiate construction on additional homes every year through 2027. This includes the Ianthi project in Larnaca, a 24-apartment complex expected to finish by September 2025. Six units are already sold, with 16 still available. Nearby plots will host a further 16 apartments starting in 2026. Agreements with developers have also been sealed for 39 affordable units in the Larnaca district.
Limassol will soon welcome its first dedicated affordable rental housing project, developed in partnership between KOAG and the local municipality. Rents here will be 25-30% below market rates. This initiative is part of a larger €100 million investment aiming to deliver around 600 units across Ayios Nikolaos and Ayios Ioannis districts.
The initial phase in Ayios Nikolaos includes four six-storey buildings with 138 apartments. KOAG will manage 94 apartments, while 44 will be overseen by the municipality. This phase alone represents an investment exceeding €22 million, marking a significant collaboration and milestone after over three years of planning.
Other projects across Cyprus are underway or planned, including three-bedroom units in Ekali, Kaimakli, and Kokkinotrimithia. KOAG expects to begin work on 135 more homes in areas such as Pano Polemidia, Ayios Dometios, Lakatamia, Palouriotissa, and Kaimakli by the end of 2025, with additional units in Kokkinotrimithia.
For those interested in exploring affordable properties further, Index.cy offers a comprehensive selection of Cheap Houses and Villas for Sale Cyprus as well as renovated apartments and other affordable real estate options.
While the market faces ongoing challenges, these state-driven schemes and developer collaborations bring hope to increasing housing availability, particularly for younger residents seeking affordable entry points into Cyprus’ property market.
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