In a significant move to tackle the ongoing housing shortage, the Cabinet on Wednesday approved key amendments to a special incentives scheme aimed at increasing the supply of affordable homes.
The revamped policy is expected to open up new opportunities for developers while also addressing the growing demand for housing among foreign workers.
More attractive incentives package for developers
Interior Minister Constantinos Ioannou, speaking after the Cabinet meeting, announced that the scheme has been broadened to better appeal to the construction sector. By extending development opportunities and relaxing certain requirements, the government hopes to spur more residential projects across the country.
“Today’s Cabinet decision marks a significant step towards achieving our objectives through a comprehensive housing policy,” said Ioannou.
What’s new in the incentives scheme?
Here are the main updates to the revised scheme:
- Wider Scope: The scheme now includes commercial and tourist zones where residential development is allowed.
- Expanded Eligibility: Certain areas adjacent to Local Plans, identified in the national Policy Statement, are now eligible under specific conditions.
- Increased Building Potential: The maximum allowable building coefficient has been raised from 30% to 35% for areas where multiple incentives can be combined.
- Smaller Plot Size Requirement: The minimum net plot size for developments in zones with a building coefficient below 100% has been reduced from 3,000 sqm to 2,000 sqm.
New directive for collective housing
Alongside the scheme expansion, the government is introducing a framework to guide the development of collective residential complexes, which is designed primarily for foreign workers.
“These units are intended to meet the housing needs of specific groups on a short to medium-term basis,” Ioannou explained, adding that this move also aims to support employers and key sectors of the economy.
The upcoming directive will outline clear rules and planning criteria, including minimum bedroom sizes, private bathrooms, and shared living spaces for up to eight people that are similar in concept to student dormitories.
Easing market pressure & building for the future
By offering dedicated accommodation for foreign workers, the government hopes to relieve pressure on the broader housing market, freeing up conventional units for local residents.
Ioannou emphasized that this initiative strengthens one of the two key pillars of the government’s housing policy: increasing the overall housing stock, especially through partnerships between the public and private sectors.
“Our ministry remains committed to delivering practical, actionable solutions that will gradually ease the housing crisis affecting many of our fellow citizens,” he said.
We spent 10 long years trying to get our title deeds from the developer, not knowing if he’d sell the house from under our feet or go bankrupt and we would be homeless, left with nothing.
I would never buy another house in Cyprus from a developer or from anyone who doesn’t have clean title deeds. No matter how nice, no matter what the price. The heartache isn’t worth it.
As for building more homes, we have hundreds and hundreds of half finished, part built homes which have been in that state for years, why not complete these first rather than build more structures? On one part built house someone has spayed. “One day this nightmare will be someone else’s dream”.
Sums up Cyprus perfectly.