Interior Minister Constantinos Ioannou on Tuesday presented the government’s latest housing policy measures, outlining a housing drive that will see 2,500 new homes built across Cyprus over the next two years.

Speaking at the ‘Real Estate, Property Development and Construction’ conference in Nicosia, the minister stressed that affordable housing remains a top priority for Cyprus, particularly during its Presidency of the Council of the European Union.

“The interventions of the government move along four axes to address the housing issue,” he said.

“Through the proposed actions, emphasis is placed on increasing supply, reducing bureaucracy, strengthening investments in the housing sector and supporting the most vulnerable groups of the population,” he added.

The minister explained that the Cypriot Presidency focuses on access to affordable and sustainable housing for all, with particular emphasis on middle-income households and young families.

He said this approach aims to respond to modern housing needs while also facilitating and strengthening investment in the housing sector.

“We are utilising all available financial tools and encouraging cooperation between the public and private sector through the promotion of a new pan-European investment platform for affordable and sustainable housing,” he said.

At the same time, the strategy prioritises the increase in affordable housing supply through new construction, renovation and reuse of existing buildings.

It also promotes the exchange of knowledge and best practices among EU member states, supported by the collection of reliable market data.

The minister underlined that housing demand remains high while supply is not increasing at the same pace, making targeted policy intervention necessary.

“It was deemed necessary to adopt a series of measures aimed both at the construction of new housing and the utilisation of existing residential units,” he said.

Among the key initiatives are the urban planning incentive schemes and the build to rent programme, which aim to increase housing availability through collaboration with the private construction sector.

“Through these schemes, in cooperation with all of you in the private construction sector, we seek to increase the supply of housing,” he said.

According to the minister, 46 applications have been submitted to utilise planning incentives and additional building coefficients.

These applications correspond to the gradual construction of more than 2,500 residential units over the next two years, of which 400 units will be allocated to the affordable housing market.

In parallel, 24 additional applications involve the purchase of building coefficients, generating a total compensation of €12.5 million.

These funds will be directed to the Special Affordable Housing Fund of the Cyprus Land Development Corporation, supporting its housing programmes.

Looking ahead, the Cyprus Land Development Corporation is set to deliver 244 residential units for sale at affordable prices and 192 units for affordable rent during 2026.

At the same time, the process is underway for the division of 135 plots of land across Nicosia, Larnaca, Limassol and Paphos.

The minister also referred to a project for the construction of approximately 500 affordable rental units on state land, with a total investment exceeding €75 million and a completion horizon set for 2029.

In addition, the government is advancing a collective accommodation scheme for workers in the sectors of trade, industry and tourism.

The minister recalled that one month ago the student housing scheme was launched, aiming to address rising demand for student accommodation and stabilise rental prices in areas with strong student presence.

He also highlighted significant improvements to the ‘Renovate and Rent’ scheme, designed to make it more attractive and boost short-term housing supply.

These changes include an increase in the grant by €5,000 per residential unit type, the inclusion of non-residential properties such as offices and commercial spaces, the expansion of eligible areas, and adjustments to electricity consumption limits.

On land development licensing reform, the minister reported that nearly 2,100 applications for developments of up to two homes have been processed within 40 working days.

He added that a further 660 applications concerning apartment buildings of up to 20 units were examined within 80 working days.

“Based on these figures, it is estimated that nearly 5,800 households will meet their housing needs approximately one year earlier,” he said.