The Cyprus Ministry of Interior has unveiled a comprehensive update to the government’s housing policy. The new strategy includes a plan to build student dormitories and a major review of existing schemes aimed at increasing the supply of affordable housing.
Constantinos Ioannou emphasized that addressing the shortage of student housing near higher education institutions is a priority. Due to critically high rental costs in cities like Limassol, where rents reach €800–€1,000 per month, the government is introducing new development standards :
- Scale: Student dormitories will consist of a maximum of ten rooms in each building.
- Area: A five-room unit can be built on 77 sq. m of usable area.
- Location: Integration of such units into new or existing developments within a one-kilometre radius of registered universities is permitted.
- Parking: Requirements have been relaxed to one parking space for every five rooms.
In addition, the subsidy amount per residential property will be increased by €5,000, and electricity consumption limits for tenants will be raised from 200 to 500 kWh per year.
The reforms provide for a significant increase in financial support for citizens. Income thresholds for applicants have been raised, and bereaved families can now count on an additional 20% of financial assistance. The total amount of state support, when combined with the Ministry of Energy’s programs, could reach €100,000.
The Cyprus Organization for Land Development (KOAG) has received €28 million in government funding. This year, it plans to deliver 244 affordable apartments for sale and 192 for rent. Over the long term, the organization aims to create over 2,500 new apartments.
Furthermore, streamlining the licensing process should expedite the supply of residential properties to the market. This will allow construction to begin on over 5,500 residential units a year ahead of schedule.
Representatives of Parliament and the Chamber of Commerce and Industry ( KEVE ) welcomed these measures, calling them a timely intervention in the market situation. Experts believe that this will not only ease the burden on households and students but also create new jobs in the construction sector, promoting social cohesion in every region of the country.
Applications are now open for new programs and student housing developments. will begin on March 2, 2026 and will last until December 31, 2027.
