New developments are taking shape in the government’s housing policy, with a series of plans having been revised in 2026 and two new tools now available to citizens.

Grants for purchasing, building, or renovating a home; government-owned lots available at 25% of market value; the use of family assets to build a second home; affordable rent; special programs for displaced persons, and incentives to increase the housing stock—these elements now make up the framework of the government’s housing policy.

Several aspects have changed; for example, programs for mountainous, remote, and rural areas have been relaunched with increased subsidies and expanded income criteria; the “I Renovate – Rent” program is in its second call for proposals, and since September, new plans for state-owned plots and the development of existing family homes have been put on the table.

New Call for Proposals

The 6th Call for Proposals under the Housing Plan for the Revitalization of Mountainous, Frontier and Disadvantaged Areas is now in effect, with applications being accepted from March 2, 2026, through December 31, 2027.

The Program concerns the purchase of a privately owned residence for permanent occupancy in designated frontier, mountainous, disadvantaged, extremely mountainous, small, and remote areas. The subsidy covers up to 50% of eligible expenses.

The amount of the grant varies based on both household composition and the category of the region. For example, for a family with children, the basic grant can range from €35,000 to €50,000, while for a young family with children, where at least one spouse is under 41 years of age, it ranges from €50,000 to €65,000.

For a family of six, the subsidy can reach up to €70,000, and for a family of seven or more, up to €75,000, depending on the region.

Read more: Housing Plans: 27 Questions and Answers About the Two New Plans and Everything You Need to Know

A special provision is now in place for displaced persons, who are granted a 20% increase on top of the basic financial assistance. A corresponding 20% increase is provided for those purchasing a home in the Tillyria region, while if both conditions are met, the increase reaches 40%.

At the same time, additional assistance for special construction requirements due to terrain topography or slope has been increased to €20,000 in mountainous and disadvantaged areas and to €40,000 in extremely mountainous and remote areas. Additional support of up to €10,000 is provided for necessary construction projects for people with disabilities.

Applications are submitted to the local District Administrations, and the date of receipt determines the order of priority.

Increased grants are also available for rural areas

The Housing Plan for the Revitalization of Specific Rural Areas has also been revised; which is now in its 5th Call for Proposals and covers communities and areas not included in the plan for mountainous, remote, and disadvantaged regions.

Applications also began on March 2, 2026, and will be accepted until December 31, 2027.

The government covers up to 50% of the total cost of purchasing a home, with a minimum total eligible cost of €20,000.

Under the new call for applications, the maximum amounts have been increased:

• Up to €20,000 for a single person or a family of up to three people
• Up to €25,000 for a family of four to six people
• Up to €30,000 for a family of seven or more

For displaced persons, the basic assistance is increased by 20%, while individuals with disabilities may be granted additional assistance of up to €10,000.

The income criteria have also been expanded. The maximum annual gross family income is set at €30,000 for a single person, €50,000 for a couple or a two-person single-parent family, €55,000 for a family of three, €60,000 for a family of four, €70,000 for a family of five to six, and €75,000 for a family of seven or more.

State-owned plots at 25% of market value

One of the most significant new initiatives is the Housing Plan for the Allocation of Plots to Families Based on Income Criteria.

The Plan provides for the allocation of state-owned plots to communities in all districts, including the 63 communities that have been incorporated into municipalities, with beneficiaries paying just 25% of the market value of the land.

Read more: State-owned plots at 25% of market value: Who is eligible and how to apply

In the first phase, more than 570 existing, unallocated state-owned plots will be made available, followed by new subdivisions of state land in communities that express interest.

Eligible applicants are Cypriot citizens who are married couples with or without children, as well as single-parent families. At least one of the two members of the couple must be under 45 years of age.

Additionally, at least one member must be a permanent resident of the community where the plot of land is located or of a neighboring community within a 15-kilometer radius.

The income limits are set as follows:

• Couple or single-parent family: up to €45,000
• Family of three: up to €50,000
• Family of four: up to €55,000
• Family of five or more: up to €65,000

Priority is given first to native permanent residents of the community, followed by displaced persons who reside permanently there, internal migrants wishing to return, repatriates or external migrants, and residents of neighboring communities.

The beneficiary must complete construction of the residence within three years of signing the agreement. The transfer of the plot of land prior to the completion of the residence is prohibited, and the residence may not be sold or transferred until five years have passed since its completion.

Applications will be accepted on a region-by-region basis by the respective District Administrations, depending on the availability of plots.

New home on or next to the family home

The second new tool is intended for families who already own real estate but whose available building coverage ratio does not permit the construction of another residence.

The Plan for Granting the Right to Build a New Residence allows for the creation of an additional residential unit within an existing, legal, and permitted residential development to house a member of the owner’s family.

The new residence may be created by adding an additional story, by expanding the existing development, or by utilizing vacant space on the lot, even when the standard floor-area ratio has been exhausted.

Read more: With this new housing plan, you can build an additional floor

The maximum buildable area of the new residence is set at 150 square meters and may, in exceptional cases, reach 180 square meters when the net area of the lot or parcel is at least 1,000 square meters

There are specific exceptions, including for listed buildings and Special Character Areas.

The Plan will apply to urban planning applications submitted by December 31, 2027.

“Renovate – Rent”

The “Renovate – Rent” Program is now in its second call for applications, aiming to bring back into the market residential properties that remain vacant, idle, or unused.

Owners can receive a grant ranging from €15,000 to €35,000, depending on the size of the residential unit, for renovation or upgrading, with the obligation to subsequently make it available to eligible tenants at an affordable rent.

The residence must, among other things, be at least 15 years old and meet the criteria to be considered vacant or unused.

The owner’s obligation to make the unit available at an affordable rent lasts for a total of four consecutive years.

Applications for the second call began on March 16, 2026. Applications from owners will be accepted until December 31, 2027, while the process for potential eligible tenants is also underway.

Applications are submitted online via the “Affordable Housing” platform.

COAG: Hundreds of Homes for Sale and Rent

The Cyprus Land Development Organization has taken on a central role in implementing housing policy; which now serves as the government’s primary executive arm in the affordable housing sector.

According to data from the Ministry of the Interior, by 2026, the CEDA is on track to complete 244 housing units intended for sale at affordable prices and another 192 units for affordable rent.

At the same time, the process of subdividing 135 plots of land in areas of Nicosia, Larnaca, Limassol, and Paphos is moving forward.

The homes for sale are being offered as part of the Organization’s housing programs, particularly the Moderate-Income Housing Plan, while KOAG is simultaneously developing affordable rental housing projects.

500 new homes on state-owned land

A notable initiative is the government’s plan to construct approximately 500 new homes on state-owned land in Nicosia, Limassol, Larnaca, and Paphos.

The total investment is estimated at over €70 million, not including the value of the state-owned land, and the project is scheduled for completion in 2029.

The apartment buildings will be constructed by the private sector using the “Design and Build” method; the land will remain state-owned, and KOAG will be responsible for the allocation and management of the housing units.

The goal is for the units to be offered at affordable rent to eligible recipients, including young people, young families, and low- to middle-income earners.

Build-to-Rent and Urban Planning Incentives

Urban planning incentives and the “Build to Rent” program remain a key part of housing policy; these are not subsidies for citizens, but rather tools for increasing the housing supply through the private sector.

The “Build to Rent” program provides an additional floor area ratio for developments in exchange for making the additional units produced available at affordable rents.

The framework was revised in 2026 so that the total normally permitted floor area could be freely made available on the market, while the units resulting from the additional density bonus remain reserved for affordable rental housing for four years.

By early 2026, 39 applications had been submitted to take advantage of the incentives and the additional floor area ratio, corresponding to more than 2,500 residential units, of which 275 were affordable. In another 22 applications, the option to purchase the additional floor area ratio had been selected, generating €11.5 million for the KOAAG Special Affordable Housing Fund.

On February 13, 2026, the Council of Ministers approved a revised Special Urban Planning Incentive for the production of affordable housing, with the aim of making the construction of homes for sale or rent more attractive.

Student Housing – New Plan in 2026

The housing policy has also been expanded to include the Student Housing Construction Plan, which was implemented in 2026 with the aim of increasing the supply of student housing and easing rental pressures around university campuses.

The new model allows for units with up to ten student rooms, with more flexible requirements regarding common areas and parking.

These units can be built in both new developments and, under certain conditions, in existing buildings, and must be located within one kilometer of a registered institution of higher education.

Refugee Housing Policy

The housing plans of the Agency for the Care and Rehabilitation of Displaced Persons constitute a separate chapter.

The Agency implements three basic housing programs:

• Financial assistance for the purchase of a house or apartment
• Financial assistance for building a home on privately owned land
• Financial assistance for the repair of a house or apartment

In addition, rent subsidy programs are in place for displaced families, single individuals, and students.

The current income limits for the YMAPE housing programs are up to €30,000 for a single person, €50,000 for a couple or single-parent family, €55,000 for a family with one child, €60,000 for a family with two children, and €70,000 for a family with three or more children.

If the corresponding income limit is exceeded by up to 10%, the application may be approved provided the remaining conditions are met, with the amount by which the limit is exceeded deducted from the grant.

For the purchase or construction of a home, financial assistance amounts to:

• Up to €20,000 for a single person
• Up to €30,000 for a couple
• Up to €35,000 for a family with one to three children or a single-parent family
• Up to €40,000 for a family with four or more children

For home repairs, assistance amounts to up to €10,000 for a single person and up to €12,500 for a nuclear family.

The program for young people up to age 41 has ended

An important clarification concerns the Housing Subsidy Program for Young Couples and/or Young People up to 41 years of age.

Although it still appears in the section on the Unified Housing Policy, there is currently no open call for new applications.

The 2025 call for applications was open to young couples, single-parent families, and single individuals up to 41 years of age for the purchase of a home up to 150 square meters in designated areas. Applications were accepted until November 30, 2025, and the Ministry’s official website now states that the deadline has passed.

Consequently, until a new call for applications is announced, this program is not currently an available option for submitting a new application.

Annual Support for Residents of Mountainous and Remote Areas

In addition to purely housing-related programs, the government continued in 2026 the two financial support programs for permanent residents of mountainous and remote areas.

For residents of areas at an elevation of at least 600 meters, the basic annual subsidy is set at €175 for areas between 600 and 800 meters, €225 for 801–1,000 meters, and €260 for areas above 1,000 meters, with an additional €165 per household member.

The second plan applies to working permanent residents of remote areas located at least 40 kilometers from an urban center or 30–39 kilometers away and, at the same time, at an elevation of at least 700 meters.

The application period for the 2026 programs ended in July, so it is currently not open for new applications.

For more information on all of the above programs, interested parties can visit the website: https://www.gov.cy/moi/documents/nea-eniaia-stegastiki-politiki/