The government is stepping up its efforts to make housing more affordable in Cyprus, Interior Minister Constantinos Ioannou said on Wednesday. Speaking at an event titled “The Right to Housing – Housing Policy” at the Cyprus University of Technology (Tepak), Ioannou highlighted access to housing as one of the most pressing challenges facing modern societies.
In response, the government has launched a comprehensive housing strategy called “Stegazo to Mellon mou” (“Housing My Future”), built around two key goals: increasing the overall housing supply and improving affordability, particularly for young people and families.
According to the minister, interest from developers has already been strong, with over 1,900 housing units expected to be built in the coming years. Approximately €9 million will be added to the special affordable housing fund through planning incentives.
Two main tools are central to the plan: planning incentive schemes and the “build to rent” programme. Both aim to boost housing availability and drive down prices. Developers granted extra building rights are required to either include affordable homes in their projects or contribute financially to the fund.
Projects can now also be built on plots as small as 800 square metres, opening the door for smaller developers to participate as well.
To streamline the process, the government has also taken steps to reduce permit delays. Local district authorities now manage applications, supported by increased staff and 22 new regulations. As a result, planning permits are issued within 40 working days and building permits within 80.
Additionally, private consultants have taken over responsibility for application checks and new legislation is expected to introduce a building inspector role to improve oversight and construction quality.
Ioannou also announced further changes.
Developers in tourist zones will soon be exempt from certain rigid apartment type requirements, and minimum apartment sizes will be reduced by 15 per cent. A new policy will also encourage mixed-use developments in commercial areas, offering housing options for nearby workers.
Ioannou emphasised that the government’s housing policy will remain dynamic, evolving based on actual needs. He pledged continued dialogue with both developers and the public to further improve access to affordable housing.
