Two new housing plans that strengthen and expand the government’s comprehensive housing policy were presented by Interior Minister Konstantinos Ioannou, who, speaking at a press conference, emphasized that the two new housing plans.
“Housing policy represents a continuous and multifaceted effort for the government, with a clear goal: to expand housing options and create more opportunities for citizens to become homeowners.” he said.
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The two new targeted programs that were presented complement existing tools and address different needs.
The first concerns the possibility of adding an additional floor to an existing residence to house family members, while the second plan concerns the allocation of state-owned plots of land to families that meet specific criteria.
The common philosophy behind both is to make better use of the resources we already have, so that they can be transformed into more and more affordable housing options for citizens.
Plan to Grant the Right to Add an Additional Story to an Existing Residence
This comprehensive approach includes the new plan to grant the right to construct a new residence on an additional floor for the purpose of housing family members.
Simply put, owners of existing residences are given the opportunity, under specific conditions and regardless of whether the building coverage ratio has been exhausted, to construct an additional floor to house their children or grandchildren. The Plan applies throughout Cyprus, with specific exceptions set forth in its terms.
This is an initiative with a clear social dimension, as it enables families to make use of the property they already own, thereby limiting the need to find new housing and reducing construction costs, thus freeing up resources from the family budget.
At the same time, this approach makes better use of the existing housing stock and the urban planning potential already present in cities and communities.
Specifically, under the specified conditions, an additional dwelling may be created either within the existing building or through an extension, the addition of a floor, or the use of the lot’s vacant space. The new unit may have a buildable area of up to 150 square meters and, under certain conditions, up to 180 square meters on larger lots. At the same time, provisions are made for parking facilities and a 10-year restriction on the transfer of the new unit, with the exception of inheritance.
Plan for Allocating Plots of Land to Families
At the same time, the implementation of the Plan for the Allocation of Plots to Families based on income criteria was announced. The Plan has a twofold objective: to support families facing difficulties in acquiring housing and, at the same time, to strengthen communities.
Through this program, we are utilizing available state-owned land and allocating it to families who meet the specified criteria, so that they can acquire their own home for owner-occupancy.
The plots will be made available at 25% of their market value. Eligible recipients are Cypriot citizens under the age of 45, and the Program covers families with children, childless couples, and single-parent families, based on specific income, family, and other criteria.
“In this way, we are creating a real opportunity for young and low- to middle-income families to acquire land to build their own homes at a significantly reduced cost,” he emphasized.
At the same time, the allocation of plots in rural and mountainous communities contributes to their strengthening and revitalization.
Expressions of interest in participating in the Program will be submitted through the Presidents of the Community Councils, who will then forward the preliminary requests to the relevant District Administrations so that the process of evaluating and allocating the proposed plots can begin.
In the coming period, approximately 570 plots across all districts will be allocated to eligible recipients who have previously expressed interest through the first phase of the Plan, and we will then proceed with additional plot subdivisions in communities that have shown interest. Particular emphasis will be placed on mountainous, remote, and disadvantaged areas.
Detailed guidelines for the two new housing plans will be posted in the coming days on the Ministry of the Interior’s website.
Existing Housing Plans
Mr. Ioannou reiterated that the two new plans are part of a broader effort to address the housing crisis, which focuses on two main pillars: increasing the housing stock and enhancing citizens’ ability to become homeowners.
At the same time, existing measures must now deliver concrete and measurable results.
First, the Housing Plan for young people and young families up to age 41 has supported 700 beneficiaries, at a total cost of €26 million. The strong response raises the prospect of relaunching the program, provided the necessary resources are secured.
Second, the Housing Programs for mountainous, remote, disadvantaged, and rural areas support both housing and community development. During the 2023–2026 period, 1,075 applications were approved, with a total expenditure of €43 million.
Third, the housing projects of the Agency for the Care and Rehabilitation of Displaced Persons are being implemented, addressing the housing needs of a vulnerable segment of the population, namely our fellow citizens who are refugees. For the three-year period 2023–2026, more than 6,500 applications have been approved, totaling €168 million.
Fourth, procedures are moving forward for the Affordable Housing Construction Plan on State-Owned Land, with the goal of creating 460 modern, high-quality homes for young people and families at very affordable rents. The architectural competition has been completed, the model development plans have been selected—some of which you can see on the screen—and we are moving forward to the next stages of implementation.
Fifth, the KOA has been reactivated and strengthened as a key pillar of our housing policy. A total of 702 housing units are currently under construction, in the permitting process, or in the planning stage, while the subdivision of 135 lots is being advanced in parallel.
Sixth, through the Urban Planning Incentive Schemes and the “Built to Rent” program, more than 4,100 housing units are expected to be added to the market over the next three years, of which 1,142 will be made available for affordable purchase or rent. At the same time, more than €22 million is expected to flow into the KOAAG Special Affordable Housing Fund to enable the Organization to create approximately 250 additional units.
Seventh, plans for student and shared housing are moving forward, expanding the available options for students and workers and addressing specific housing needs.
And, finally, the reform of the expedited permitting process has already yielded measurable results. By the end of August, 2,533 single-family and two-family homes were permitted within 40 business days, and 1,242 apartment buildings and row housing developments were permitted within 80 business days. These developments involve more than 15,000 families, who are estimated to be able to move into their homes about a year and a half earlier than expected.
“These figures reflect in practice the government’s approach to housing: greater supply, more options, faster implementation, and meaningful support for citizens,” he said.
In conclusion, he noted that “Housing is one of the government’s most important policy priorities, because it directly affects quality of life, young people and families, the demographic and economic security of citizens, and social cohesion. That is why we are moving forward with a comprehensive and constantly evolving policy framework, increasing the housing stock, utilizing public and private land, supporting citizens, and streamlining procedures. The new plans we presented today are part of this comprehensive effort. And most importantly, our housing policy is not just on paper. It is being implemented and is already yielding tangible results. We will continue along the same path, enriching and adapting our policies to the real needs of society and making full use of every available tool and resource of the State.”
