Cyprus introduces two new housing schemes: state-owned plots at 25% of market price and an extra floor for children

Cyprus Interior Minister Constantinos Ioannou has presented two new housing schemes. Homeowners will be able to add an extra floor for their children and grandchildren, bypassing building density restrictions, while citizens under 45 will be offered state-owned plots at 25% of their market value.

The first scheme applies across the island. Owners of existing homes will be allowed to build an additional residential unit of up to 150 sq. m, or up to 180 sq. m on larger plots, even if the permitted building density has already been used. Parking requirements have also been eased. The new housing unit may not be transferred to another owner for 10 years, with an exception only for inheritance.

The second scheme concerns state-owned plots, which will be allocated at one-quarter of their market price to Cypriot citizens under 45 — families with children, childless couples and single-parent families. Applicants will be selected based on income, family composition and other criteria. Around 570 plots will be distributed across all districts, with priority given to mountainous, rural and disadvantaged areas. Applications are submitted through the chairpersons of community councils.

“We are giving owners the opportunity to build an additional floor to house family members, bypassing building density restrictions,” Ioannou explained.

According to the ministry, programmes in place since 2023 have already supported 700 beneficiaries under the young families scheme, amounting to €26 million; 1,075 approved applications under schemes for rural and disadvantaged areas, amounting to €43 million; and more than 6,500 applications under assistance programmes for displaced persons, amounting to €168 million.

The government expects planning reform and new construction to add around 4,100 housing units to the market over the next three years, including 1,142 affordable homes.