Cyprus government unveils two new housing schemes to address affordability

On Wednesday, September 9, 2026, Cypriot Minister of Interior Constantinos Ioannou announced two new housing initiatives aimed at expanding affordable living options. These schemes are part of a broader, multi-year government effort to increase the available housing stock and support families, particularly young people, in securing their own homes amidst high demand and rising construction costs.

The first scheme allows homeowners to construct an additional floor or residential unit on existing properties to house children or grandchildren, even if the building's current density coefficient has been exhausted. These units may range from 150 to 180 square meters, depending on the plot size. The second scheme involves the allocation of state-owned plots to eligible families—specifically citizens under the age of 45—at 25% of their market value. Approximately 570 state plots are expected to be distributed under this program.

Applicants for the land scheme must meet specific income and family criteria, with the initial interest expressed through local community councils. The government notes that these programs complement existing measures that have already facilitated the planning or licensing of roughly 4,100 residential units. Further details and full application guidelines will be published on the Ministry of Interior’s website in the coming days.