Cyprus government reports rental market stabilization and new housing policies

As of November 2026, the rental market in Cyprus exhibits signs of stabilization, with prices in Limassol, Paphos, and other major districts remaining largely unchanged since September 2025. While Nicosia and Larnaca experienced price hikes during 2024–2025, they have also recorded stable rents over the last twelve months. Interior Minister Constantinos Ioannou noted that building permits rose by 25% in the first seven months of 2026, suggesting an increase in future housing supply.

The government continues to implement its housing policy through several key initiatives, including the "Built to Rent" scheme, which provides zoning incentives of up to 45% for developers in exchange for offering affordable units. Other measures include the construction of 460 homes on state-owned land with a €70 million investment and the allocation of approximately 570 building plots in 20 communities at 25% of their market value. Furthermore, the government plans to relaunch financial aid programs for young people under 41 in 2027 and is currently exploring potential interest rate subsidies.

Despite these interventions, the Minister acknowledged that demand still significantly exceeds supply. Officials emphasize that the impact of current policies will take approximately two to three years to fully manifest in the market as ongoing developments reach completion.