Affordable housing projects gain momentum in Cyprus

Cyprus’ affordable housing schemes are seeing positive uptake, according to Interior Minister Constantinos Ioannou, as the government pushes to address the growing demand for homes. Through initiatives such as the Housing Grant for Young People and Couples, the Renovate-to-Rent Scheme, and the Build-to-Rent model, hundreds of applications have been submitted, with millions of euros already allocated to support home construction and renovation projects.

The Cyprus Land Development Corporation (Koag) is actively expanding its affordable housing programme, aiming to balance supply and demand in the medium term. Plans include the construction of hundreds of new units for both sale and rental over the next three years. In 2025 alone, Koag is working on 135 homes for sale and 36 for rent, with more projects scheduled for 2026 and 2027.

Officials expect these schemes to ease pressure on home prices and rents, while creating additional housing supply beyond what the private sector would typically produce. While it is still early to measure the full market impact, the government anticipates that these initiatives will meet part of the rising demand and contribute to a more accessible housing market.