Cyprus continues to strengthen its government strategy to address the housing crisis. In 2026, the Cyprus Land Development Corporation plans to bring 244 residential units for affordable sale to the market, along with 192 units for affordable rent. At the same time, preparations are underway for 135 land plots in the districts of Nicosia, Larnaca, Limassol, and Paphos.

📌 The government’s strategy is built around several key areas:

— increasing the supply of affordable housing;
— constructing new residential units;
— renovating and reusing existing buildings;
— accelerating the issuance of building permits;
— attracting private investment into the residential sector.

🏢 Special attention is being given to urban incentive mechanisms and the housing-for-rent programme. According to Interior Minister Constantinos Ioannou, 46 applications have already been submitted for the use of additional building coefficients. These projects could add more than 2,500 residential units to the market over the next two years, around 400 of which are expected to fall within the affordable housing segment.

💶 Another important element of the programme is linked to the purchase of building coefficients. Across 24 applications, the total amount of compensation directed to the Cyprus Land Development Corporation’s special affordable housing fund stands at €12.5 million. These funds are expected to support further housing projects.

🏠 In addition to the units planned for release in 2026, the authorities are preparing a longer-term programme for the construction of affordable rental housing on state-owned land. This involves approximately 500 rental units, with total investment estimated at more than €75 million and completion targeted by 2029.

🎓 The government is also launching a separate student housing programme. Its goal is to reduce pressure on the rental market in areas with strong student demand and help stabilise rental prices.

🔧 The housing renovation programme for subsequent rental use is also being updated. Authorities are increasing the grant by €5,000 for each type of residential unit, expanding the programme’s geographic coverage, and including not only existing homes but also non-residential premises, such as offices and commercial spaces that can be converted into housing.

🏙 These measures will be most significant for major cities and high-demand areas: Nicosia, Larnaca, Limassol, and Paphos. These are the locations where rising property prices and rental rates have the strongest impact on housing affordability for local residents, students, and young families.

🔎 You can explore available residential properties in Cyprus for purchase, living, or investment on our website.