Since its launch in 2024, Cyprus’ new housing schemes have received over 560 applications, confirming the high interest in affordable residential properties from families and developers.
According to Minister Constantinos Ioannou, the bulk of the requests are related to the grant for the purchase of residential property for young people and couples up to 41 years of age. 525 applications were submitted, of which:
- 152 approved , providing approximately €5.4 million in aid;
- 172 rejected ;
- 1 recalled ;
- 200 are under consideration.
43 applications were submitted under the Renovate-to-Rent programme. To date, 28 have been approved with funding totalling €727,000, 6 are pending and 9 have been rejected.
The government notes that these measures are aimed not only at supporting individual families, but also at reducing tensions in the real estate market. It is assumed that the increase in supply will help stabilize prices for the purchase and rental of residential real estate.
Participation of developers and new projects
Seven companies have already joined the initiative by buying up their urban planning coefficients, which has contributed around €5 million to the affordable housing construction fund.
The Cyprus Land Development Corporation ( Koag ) has signed 16 agreements with private developers covering 84 apartments , of which 65 will be sold and 19 rented out at reduced rates.
- In 2023, Koag completed 16 homes;
- in 2025, construction of another 24 buildings will be completed;
- In 2026–2027, it is planned to build more than 270 new properties, including apartments for sale and rent.
Projects by district
- In Larnaca, the Ianthi residential complex with 24 apartments is under construction, the delivery is scheduled for September 2025. 6 apartments have already been sold, 16 remain for sale.
- The first affordable rental housing project in Cyprus has been launched in Limassol in partnership with the municipality. In the Agios Nikolaos is building four six-storey buildings with 138 apartments. Of these, 94 will remain under the management of Koag, and 44 will be transferred to the municipality. The cost of the first stage of the phase exceeded €22 million.
- In Nicosia, construction continues on projects in Kokkinotrimithia and Kaimakli, and new homes are planned in Pano Polemidia , Agios Dometios , Lakatamia and Paluoriotissa.
By 2027, all current projects will be operational, significantly increasing the country’s affordable housing stock. Depending on the level of demand, the government and Koag plan to consider further expansion of the programs.
Cyprus is thus betting on a comprehensive development of the affordable housing sector, combining state support, developer participation and municipalities, which should contribute to the long-term stabilisation of the market.
