The housing policy implemented over the past nearly three years has yielded significant results, with thousands of families taking advantage of support programs and thousands of new homes in the pipeline, thereby increasing the housing supply.

The policy implemented by the Ministry of the Interior, as stated by Konstantinos Ioannou, focuses on two main areas. “We have made housing one of the government’s top priorities and have formulated a comprehensive policy based on increasing the housing supply and enhancing citizens’ ability to become homeowners.”

More than 10,000 homes brought to market earlier

The reform of the development permitting process has made a very significant contribution to this effort. According to data from the Ministry of Interior, nearly 2,500 applications for developments of up to two homes were processed within 40 business days, while more than 910 applications for apartment buildings with up to 20 units were reviewed within 80 business days. This acceleration is expected to allow for the construction of approximately 10,000 homes, one to two years earlier than under previous procedures.

At the same time, through the Urban Planning Incentive Schemes and the “Build to Rent” program, projects have already been launched that will add another 3,300 housing units to the market, of which approximately 400 will be made available as affordable housing.

More than 1,400 families and young people are receiving grants

Particular emphasis is also placed on supporting citizens through grants for the purchase or construction of housing. More than 1,400 families have already received a grant or had their application approved through programs for young people up to age 41 and for residents of mountainous and remote areas.

Under the program for young people and young couples, a recent decision by the Minister of the Interior will allow approximately 700 beneficiaries to receive assistance, while the program’s initial announcement called for 400. As for the ongoing program for remote and mountainous areas, if combined with energy retrofit projects, the grant can reach €100,000.

At the same time, the construction of approximately 500 affordable rental units on state-owned land is being promoted, with an investment of over €75 million, while more than 4,000 refugee families have received grants through the Social Welfare Service’s programs.

Strengthening the KOAG

The Cyprus Land Development Organization is taking on an expanded role in housing policy, which is already constructing 244 homes for sale and 192 affordable rental units, while also proceeding with the subdivision of 135 plots across all districts. At the same time, the Agency’s Special Affordable Housing Fund is expected to be bolstered by approximately €17.5 million from the implementation of the Urban Planning Incentive Schemes and the Build to Rent program.

When will prices stabilize?

Despite these measures, purchase and rental prices do not appear to be stabilizing. According to the Minister of the Interior, this is due to the fact that a large portion of new housing is still under construction, while the market is also influenced by external factors such as the cost of materials and energy. “The impact of the increase in housing supply on prices will be felt gradually. Without the interventions and policies we are implementing, the pressure on prices would be even greater,” Mr. Ioannou said recently.