Cyprus government reports stabilization in rental market and new housing measures

As of November 2026, the Cypriot government has reported signs of stabilization in the national rental market, with prices remaining constant in major areas like Limassol and Paphos since September 2024. Interior Minister Constantinos Ioannou announced a 25% increase in building permits during the first seven months of 2026, which is expected to address ongoing housing shortages as supply remains below market demand.

To further boost housing supply, the government is implementing several key initiatives, including the "Built to Rent" scheme that offers up to a 45% increase in building density in exchange for affordable housing provisions. Additional measures include a €70 million investment to construct 460 homes on state land, the allocation of 570 plots across 20 communities at 25% of their value, and a planned 2027 relaunch of financial support programs for citizens under 41.

Minister Ioannou emphasized that housing policy outcomes are long-term, noting that the impact of current measures will take approximately two to three years to materialize as construction projects reach completion. Discussions are also underway regarding potential mortgage interest subsidies to facilitate home ownership, as authorities continue to monitor market trends to move from current stability toward potential price reductions.