The government has made housing one of its top priorities since taking office, fully recognising the difficulties faced by thousands of residents – particularly young people – in securing their own home, the interior ministry said on Wednesday.

The ministry was responding to criticism from opposition party Democratic Rally (Disy), which argued that government measures to tackle the housing crisis have been inadequate.

Meanwhile in a post on X, president Nikos Christodoulides said the government was implementing a clear and structured housing strategy aimed at addressing one of the country’s most pressing social challenges.

“The government, through actions and not slogans or wishful thinking, is implementing a specific plan and strategy on housing that is producing tangible results,” he wrote.

Christodoulides also highlighted what he described as the guiding principles of his administration.

“Seriousness, responsibility, credibility and effectiveness,” he wrote. “Above all, Cyprus.”

In its statement earlier the ministry said the housing problem “cannot be solved overnight” and requires coordinated policies, investment, reforms and continuous adaptation to changing conditions.

It said the government’s comprehensive housing strategy, implemented over the past two years, is built on two key pillars: increasing the supply of housing and strengthening citizens’ ability to access affordable accommodation.

“The housing policy we have designed and are implementing is based on technical and economic studies, dialogue with market stakeholders and the need to maintain economic stability,” the ministry said.

It added that the measures currently being implemented go beyond the proposals put forward by Disy.

Among the initiatives highlighted was the reduction of bureaucracy and delays through the introduction of fast-track licensing procedures. According to the ministry, around 10,000 residential units have already been approved and are expected to be built one to two years earlier than would otherwise have been possible.

The ministry also pointed to a 45 per cent increase in building density through planning incentive schemes and the Build to Rent programme. These projects are expected to add approximately 2,500 new homes to the market in the coming years, including around 400 units designated as affordable housing.

It further said that more than 1,400 individuals and families have either received or are expected to receive grants through housing schemes aimed at people under the age of 41 and residents of remote and mountainous areas.

According to the ministry, the recent decision to expand the number of beneficiaries under the housing grant scheme for young people and young families under 41 – increasing the number from 400 initially envisaged to around 700 – demonstrates the government’s commitment to addressing real social needs.

The ministry also highlighted what it described as the substantial revitalisation of the Cyprus Land Development Corporation (Koag), which it said had been largely inactive under the previous administration.

With expanded responsibilities and increased funding, Koag is currently moving forward with the construction of 244 housing units for sale and 192 rental units at affordable prices, while also promoting the subdivision of 135 residential plots across all districts.

In addition, the government recently announced plans for the construction of 500 affordable rental units on state-owned land, as well as a scheme for collective accommodation facilities targeting workers in the retail, industrial and tourism sectors.

The ministry also noted that around 4,200 refugee families have received financial support through programmes administered by the Service for the Care and Rehabilitation of Displaced Persons.

Concluding its response, the ministry said rising property prices are a challenge across Europe and cannot be attributed solely to housing supply and demand dynamics.

It argued that external factors, including inflationary pressures – particularly in the energy sector – have also played a significant role in driving up housing costs.