Cyprus is witnessing a notable increase in housing demand as more than 560 applications have been submitted under the government’s affordable housing initiatives since their introduction last year. Early feedback from both applicants and developers reveals an encouraging trend, highlighting the urgent need for affordable homes across the island.
According to Interior Minister Constantinos Ioannou, out of 525 applications received for the housing grant aimed at young people and couples aged up to 41, 152 have been approved, unlocking approximately €5.4 million in financial aid. While 172 applications were declined and one withdrawn, 200 remain under review. This scheme is clearly resonating with Cyprus’ younger population eager to secure housing support early in their homeownership journey.
Beyond new builds, the Renovate-to-Rent scheme has attracted 43 applications, with 28 approved funding nearly €727,000. This program seeks to refurbish existing properties to expand affordable rental options, a crucial step towards stabilizing the market for renters.
Minister Ioannou stressed that these initiatives are designed not only as assistance for families but also as strategic moves to augment overall housing stock. By aligning supply closer to demand, government efforts hope to temper soaring prices and rental rates in both urban and suburban areas.
Developers are increasingly engaged, with seven companies opting to buy out their urban development factor, contributing around €5 million into affordable housing funding. Meanwhile, the Cyprus Land Development Corporation (KOAG) is actively collaborating with private firms, having signed 16 agreements for 84 units—65 slated for sale and 19 for affordable rent.
KOAG’s own housing pipeline shows promising progress, with 16 homes completed in 2023 and another 24 under construction, set for delivery by 2025. The organisation plans to initiate 171 new units in 2025 and 252 in 2026, which will significantly bolster available housing by 2027 as ongoing demand is reassessed.
In Larnaca, KOAG’s Ianthi project—a 24-apartment complex due for completion in September 2025—has already sold six units, with 16 still available. Plans for an adjacent 16-unit development are in place, targeting completion in 2026, alongside agreements with developers offering 39 additional affordable homes.
Limassol is breaking new ground with the island’s first dedicated affordable rental housing project developed in partnership with the municipality. This €22 million initiative includes four buildings totaling 138 apartments, with rents set 25-30% below market levels. This project forms part of a wider €100 million investment to create around 600 affordable units in the districts of Ayios Nikolaos and Ayios Ioannis, marking a significant milestone in public-private cooperation in Cyprus.
Further projects are underway across the island, including limited three-bedroom units in Ekali (Kaimakli) and ongoing construction in Kokkinotrimithia. KOAG aims to start 135 more homes by the end of 2025 in various municipalities such as Pano Polemidia, Ayios Dometios, Lakatamia, Palouriotissa, and Kaimakli, with an additional 10 homes planned for Kokkinotrimithia.
As Cyprus seeks balanced housing solutions, these schemes are crucial for easing market pressures. For buyers exploring options, checking out listings for Cheap Houses and Villas for Sale Cyprus or Cheap Apartments for Sale Cyprus can provide insight into the evolving market landscape.
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