Apartments with lower rents. 460 units by 2031

These affordable apartments are to be built on state-owned land in four districts. The project will comprise 460 units and cost €70 million. However, construction is scheduled to begin in December 2027, with completion in April 2031.

At the same time, the government is planning further subsidies for owning a home, support for living outside large cities, and a larger budget for the Ktizo program. The goal is to increase housing availability, but new investments will not provide immediate relief for tenants.

Apartments with lower rent in four districts

The plan, presented during Monday's Interior Ministry budget presentation, covers the districts of Nicosia, Limassol, Larnaca and Paphos.

It is to be built on state-owned plots 460 units available for rent at affordable ratesEuropean co-financing is being prepared for the project.

Rent levels, detailed distribution of apartments among locations, and rules for future tenant recruitment have not yet been announced. At this stage, this is a project schedule, not an announcement of available apartments.

More money for your own place outside the city

Housing programmes for mountainous and border areas, areas with more difficult conditions and selected rural locations are earmarked. 20 million euros in 2027This is 5 million euros more than before.

From 2019 to September 2026, approximately 2,400 applications were approved under these programs, providing total assistance of approximately €91 million.

The Ministry also cited support provided to 700 young couples under the age of 41, worth a total of €26 million. This is a summary of the assistance provided, not an announcement of an additional 700 apartments next year.

Another tool is the provision of state-owned plots in rural locations. Eligible program participants pay 25% of the official valuation value. This solution is intended to encourage settlement outside large urban centers.

Permits are intended to speed up the construction of apartments

The ministry also cites the shortening of construction procedures. Under the expedited system, approximately 3,000 permits for single- and two-family homes were issued, with processing times of 40 business days.

More than 1,400 permits were issued for multi-family buildings with up to 20 apartments, in a procedure that took 80 days.

The number of permits is not the number of completed apartments. The implementation of the investment will determine when the premises will actually increase in sale or rental offer.

Ktizo: Bigger Budget and Questions About the Pace of Work

The Ktizo program, which replaces unsafe buildings in settlements for displaced persons, is scheduled for 2027. 16 million eurosFor comparison, in 2026 it was €11 million, and in 2025 €7 million.

The entire program, covering three phases, has a budget of €105 million.

During the debate, AKEL MP Nikos Kettiros criticized the pace of construction. He pointed out that of the 19 buildings scheduled for handover, only one has been completed so far. The government announced that another building is scheduled for completion in November.

Rental subsidies also subject to review

€85.7 million has been allocated for housing policy for displaced persons in 2027. This includes, among other things, housing subsidies, rent subsidies, and the renovation and modernization of housing estates.

This is about support related to resettlement resulting from the division of the island, not a general program for all tenants.

A review of the rental subsidy criteria is planned for next year. The final new rules and amounts that individual beneficiaries could receive have not yet been announced.

For those looking for an apartment, the most important factor remains the date when the additional units will actually hit the market. For the project of 460 apartments with lower rents, the current schedule extends to spring 2031.