Cyprus government announces new housing schemes to address residential needs

On Wednesday, September 9, 2026, Cypriot Interior Minister Constantinos Ioannou announced two new government housing schemes aimed at increasing the national housing supply and providing more affordable homeownership options. The policy seeks to alleviate the housing shortage and rising construction costs by utilizing both private and state-owned land.

The first scheme allows homeowners to construct an additional residential unit, such as a floor or extension, for their children or grandchildren, even if the property has already exhausted its building density. These units are capped at 150 square meters, or 180 square meters on larger plots, and are subject to a ten-year transfer restriction. The second initiative involves the distribution of state-owned plots, with approximately 570 plots across 25 communities slated for allocation at 25% of their market value. Beneficiaries will be selected based on income and family criteria.

Following the announcement, the Ministry of Interior is preparing to publish a list of available plots on September 21, 2026. The government is also evaluating requests from an additional 20 communities interested in joining the program. Officials noted that these measures are part of a broader, multi-year strategy to support young families and revitalize rural areas.