Cyprus has received more than 560 applications under its new affordable housing schemes since their launch last year, with officials saying the early response from both households and developers points to growing demand. 

Interior Minister Constantinos Ioannou, replying to parliamentary questions from Akel’s Marina Nikolaou and Edek’s Andreas Apostolou, said 525 submissions were made under the housing grant for young people and couples up to 41 years old.  

Of these, 152 were approved, unlocking about €5.4 million in aid, 172 were rejected, one was withdrawn and 200 are still under examination.  

Another 43 applications were filed under the Renovate-to-Rent scheme, with 28 approved for funding of €727,000, six pending and nine rejected. 

Ioannou said the measures are intended not only to help individual families but also to ease pressure in the housing market.  

The aim, he noted, is to increase the overall stock of homes, bringing supply closer to demand and gradually easing both purchase prices and rents.  

While the results cannot yet be fully measured, he said projects linked to planning incentives, ‘Build to Rent’ and Cyprus land development corporation’s (Koag) own developments will feed new units into the market over the coming years. 

Developers have also begun to participate. Seven companies have opted to buy out their urban development factor, generating around €5m in funding that will be channelled into affordable housing.  

At the same time, Koag has signed 16 agreements with private firms for 84 units in total, including 65 earmarked for sale and 19 for affordable rent. 

On Koag’s own pipeline, 16 homes were completed and offered for sale in 2023, while 24 are under construction this year for delivery in 2025.  

Next year, work will begin on another 135 units for sale and 36 for rent. In 2026, a further 96 homes for sale and 156 for rent are scheduled, with all projects feeding into the market by 2027, when Koag will reassess future plans depending on demand and resources. 

In Larnaca, the organisation is building the Ianthi project of a 24-apartment complex due for completion in September 2025.  

Six units have already been sold and 16 remain available.  

On the adjacent plot, Koag intends to construct another 16 apartments, with a budget allocation planned for 2026.  

Separately, agreements with developers in the district cover 39 more affordable units, which will be sold to beneficiaries once finished.  

The organisation is also breaking new ground in Limassol, where work has now started on the island’s first dedicated affordable rental housing project.  

The development, carried out in partnership with the municipality, will deliver apartments at rents 25 to 30 per cent below market levels and forms part of a wider €100m plan to provide around 600 units across Ayios Nikolaos and Ayios Ioannis.  

The first phase in Ayios Nikolaos includes four six-storey buildings with 138 apartments, of which 94 will remain under Koag’s management and 44 will pass to the municipality.  

The budget for this phase alone exceeds €22m. Koag’s vice-president Theseas Ioannou described it as the culmination of more than three years of planning, and the first time the organisation has worked directly with a local authority.  

Further housing schemes are also in the pipeline across the island. A limited number of three-bedroom units are currently available in the Ekali project in Kaimakli, while more are under construction in Kokkinotrimithia.  

By the end of 2025, Koag expects to begin another 135 units in locations including Pano Polemidia, Ayios Dometios, Lakatamia, Palouriotissa and Kaimakli, along with 10 additional homes in Kokkinotrimithia.