In a major step towards addressing the housing shortage, the Cabinet on Wednesday approved key changes to a special incentives scheme aimed at increasing the supply of affordable housing. The updated policy opens up new opportunities for developers and addresses growing demand for residential property among foreign workers.
Minister Constantinos Ioannou announced that the incentive scheme had been expanded to make the construction sector more attractive. By expanding the scope for development and relaxing some requirements, the government hopes to encourage new housing projects across the country.
The main changes in the incentive scheme are:
- Expanded coverage : The scheme now covers commercial and tourist zones where residential development is permitted.
- Increasing accessibility : Some areas adjacent to local plans outlined in the National Policy Statement are included in the scheme, subject to certain conditions.
- Increased development potential : The maximum allowable development factor has been increased from 30% to 35% in areas where multiple incentives can be combined.
- Reduction of minimum lot size : The minimum net lot area for development in zones with a development rate below 100% has been reduced from 3,000 sq. m to 2,000 sq. m.
Along with the expansion of the program, the government is introducing a framework to regulate the development of collective housing complexes, which is primarily intended for foreign workers.
Constantinos Ioannou stressed that this initiative strengthens one of the two key pillars of the government’s housing policy: increasing the overall stock of residential properties, especially through public-private partnerships.
“Our ministry remains committed to implementing practical and effective solutions that will gradually alleviate the housing crisis affecting many of our fellow citizens,” he concluded.
