The government has defended its housing policy following criticism from opposition party DISY, insisting that tackling the housing crisis has been among its top priorities since taking office.
In a statement responding to allegations that measures introduced to address housing challenges have been inadequate, the Interior Ministry said the issue could not be resolved overnight and required coordinated policies, investment, reforms and continuous adaptation to changing conditions.
Two pillars
The ministry said the government's comprehensive housing strategy, developed and implemented over the past two years, is based on two key pillars: increasing the supply of housing and strengthening citizens' ability to secure a home.
It added that the policy framework was shaped through technical and economic studies, consultations with market stakeholders and the need to safeguard economic stability. According to the ministry, the strategy includes significantly more schemes and programmes than those currently proposed by DISY.
Among the measures highlighted was the reduction of bureaucracy and delays through the introduction of fast-track licensing procedures. The ministry said approximately 10,000 residential units have been approved and are expected to be completed one to two years earlier than would otherwise have been possible.
Support for young people
It also pointed to a 45 per cent increase in building density through planning incentive schemes and the Build to Rent programme. These initiatives are expected to deliver around 2,500 additional homes to the market in the coming years, including approximately 400 affordable housing units.
According to the ministry, more than 1,400 individuals and families have received, or are expected to receive, grants through housing schemes targeting people under the age of 41, as well as residents of remote and mountainous areas.
The ministry said a recent decision to expand eligibility under the financial assistance scheme for young people and young families under 41—from an initial target of 400 beneficiaries to around 700, demonstrates the government's commitment to responding to genuine social needs.
The statement also highlighted what it described as a substantial revitalisation of the Cyprus Land Development Corporation, which it said had remained largely inactive under the previous administration.
An EU phenomenon
With expanded responsibilities and increased funding, the organisation is moving ahead with the construction of 244 housing units for sale and 192 rental units at affordable prices, while also progressing the subdivision of 135 residential plots across all districts.
In addition, the ministry referred to the recent launch of a scheme for the construction of 500 affordable rental units on state-owned land, as well as a collective accommodation programme for workers in the retail, industrial and tourism sectors.
The government further noted that around 4,200 displaced refugee families have received financial assistance through schemes administered by the Service for the Care and Rehabilitation of Displaced Persons.
Concluding its statement, the Interior Ministry said rising property prices remain a challenge across Europe and are not solely the result of housing supply and demand pressures. It argued that external factors, including inflationary pressures—particularly in the energy sector—have also contributed significantly to higher housing costs.
