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11.11.2026 10:42
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11.11.2026
ECONOMY
10:28

Ioannou on Alpha: Rents have stabilized but remain high; here’s what he said about mortgages and the refugee crisis

The 4,000 new housing units, grants for young people, and the issues and developments regarding turkish cypriot properties
ALPHANEWSLIVE


The Minister of the Interior, Konstantinos Ioannou, while speaking on the Alpha Kalimera program. The minister acknowledged that rent prices remain high, but argued that there have been signs of stabilization over the past year and a half. “This is encouraging, though we’re not saying the problem has been solved. There is still much to be done,” he said, noting that the main cause of the housing crisis is the imbalance between supply and demand, which intensified after 2022.

Analyzing the housing measures, Mr. Ioannou noted that through the plan to grant an additional floor area ratio of 25%–45%, the creation of approximately 4,000 additional housing units is being promoted, of which 1,140 will be made available at affordable prices. At the same time, he noted that the Cyprus Land Development Organization (CLDO) has already collected approximately €23 million from this plan, while a total of 760 residential units for sale and rent are currently under construction or planned for 2026 and 2027. He made special mention of the possibility of adding an additional floor of up to 150 square meters to existing residences to meet family housing needs, without the possibility of immediate commercial use. As he explained, the priority of housing policy is to increase supply, as providing financial assistance to citizens without a corresponding increase in the number of available homes could lead to a further rise in prices.

Regarding housing assistance programs, the Minister noted that 1,414 applications were submitted for the program targeting individuals up to 41 years of age, with 700 beneficiaries receiving grants of up to €50,000. This specific program has been completed, and a new, smaller-scale call for applications is planned for 2027. At the same time, he highlighted the interest shown in housing projects in mountainous, remote areas, and rural regions, while noting that approximately €45 million is allocated annually for housing grants to displaced persons. He also referred to plans for student housing and collective housing for workers from third countries, explaining that the goal is to free up existing housing for the Cypriot market.

Special mention was made of the problems in refugee settlements and the delays in installing elevators. Mr. Ioannou explained that in apartment buildings where title deeds have been issued, the consent of all owners is required, a fact which, according to him, hinders the implementation of these projects. As part of the “Ktizo” plan, funding of €300,000 is allocated for the apartment buildings in the second and third phases for renovation and structural reinforcement work, as well as an additional €90,000 for an elevator. “So far, several dozen have expressed interest, and some have received quotes,” he said, noting that progress also depends on coordination among the owners. He added that the government is also covering alternative solutions, such as the installation of special seats on staircases where it is not feasible to install an elevator.

Regarding the management of Turkish Cypriot properties, the Minister noted that approximately 350 residences have been vacated over the past year and are now being made available through public procedures and a points-based system. “I no longer have that authority. I have removed that authority from the minister,” he stated, emphasizing that allocations are made based on objective criteria. He also acknowledged delays of three to five months in housing repairs, clarifying that tenants can obtain quotes from private contractors and, once the work is approved, have the contractors paid by the state, without requiring beneficiaries to cover the cost upfront. He added that the processing time for housing assistance applications under the refugee care program has been reduced, in most districts, to two to three months, compared to approximately one and a half years previously.

Finally, Mr. Ioannou addressed the issue of the campsite at Akti tou Kyvernit, noting that the contract with the Pentakomo community has expired and that approximately 330 families are currently residing there without valid contracts. As he explained, the matter is being handled by the Legal Service; relevant notices have been served, and efforts are underway to find a solution. Reference was also made to the long-delayed road project in Livadia, with the Minister noting that the plans were submitted to the Department of the Environment on December 10, 2025, but the required opinion has not yet been issued to allow the procedures to move forward.

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