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Interior Ministry Announces New Affordable Housing Plans

Published February 20, 2026, 09:11
Interior Ministry Announces New Affordable Housing Plans

The Minister of Interior, Konstantinos Ioannou, presented the government's new plans to address the housing problem in Cyprus. He noted that the increase in prices is linked to inflation and increased construction costs, while demand increased significantly after the pandemic and the war in Ukraine, with the arrival of refugees and the influx of foreign companies. To alleviate price pressures, the government is promoting increased supply through urban planning incentives, such as increasing the building factor for plots over 800 sq.m. 39 applications for these incentives have already been approved, which is expected to add approximately 2,500 apartments to the market. At the same time, a fast-track licensing system has been implemented, resulting in the approval of 2,000 homes within 40 days and 640 apartment buildings within 80 days, accelerating the addition of new units to the market. The Cyprus Land Development Organization (KOAG) is also being upgraded with additional funding, while the construction of 470 residential units on state land is being promoted. Finally, the "Renovate – Rent" program was mentioned, which initially had limited response, resulting in increased subsidies and an expansion of its scope. The goal is to create more housing options and meet the needs of various population groups.