As part of the new housing policy, the Cyprus Ministry of Interior plans to create affordable housing by attracting investment in construction. At a meeting entitled “New Housing Policy: From Theory to Practice”, organised by the Pancyprian Association of Land and Construction Entrepreneurs, representatives of the construction sector had the opportunity to learn about special incentives designed to ensure affordable housing. The event took place at the PwC headquarters in Nicosia and brought together a wide range of real estate professionals.
Speaking on behalf of Interior Minister Constantinos Ioannou, Elikos Ilia, stressed that the proposed incentives include a set of innovative measures, such as increasing the development coefficient. This approach is aimed at stimulating the participation of the private and public sectors in the creation of affordable housing stock, including the construction of new and the renovation of existing residential properties.
The updated measures, introduced in June, have already attracted the attention of developers, helping to increase interest in investing in affordable housing.
Initial applications for incentives have already been submitted and a number of projects are under consideration. More projects are expected to apply for planning permission in the near future.
Incentives for affordable housing development involve three main approaches:
- Creating affordable residential properties for sale with an increase in the development rate to 45%.\Creating affordable residential properties for rent: increasing the development rate to 45%.
- Creating affordable residential properties for sale with an increase in the development rate to 25%.
Developers will be able to create affordable residential properties for sale or rent, targeting beneficiaries specified by KOAG. KOAG will set prices to ensure that residential properties are affordable to the target population.
