**Nicosia, Cyprus** – In a significant policy shift aimed at alleviating pressing housing shortages, the Cypriot government has announced a comprehensive update to its housing strategy, introducing a novel plan for student accommodation and bolstering existing affordable housing initiatives. The unveiling of these measures on Wednesday signals a determined effort to address critical gaps in the market, particularly for students and lower-income households.
The initiative, spearheaded by the Ministry of the Interior, seeks to directly confront the perennial scarcity of suitable student rooms in close proximity to higher education establishments. Under the new framework, student accommodation units will be designed with a maximum of ten rooms each, ensuring a more manageable and potentially higher-quality living environment. For context, a unit comprising five rooms will necessitate a usable space of approximately 77 square meters. Crucially, these units are envisioned for integration into both new constructions and existing buildings, strategically positioned within a one-kilometer radius of registered universities. This geographical focus is designed to minimise student commute times and foster a more integrated campus life.
Beyond the physical specifications, the government is implementing a series of incentives to expedite the delivery of these student housing solutions. Parking requirements have been notably relaxed, stipulating only one space per five rooms, a measure intended to streamline development and reduce construction costs. Furthermore, financial impetus is being provided through an increase in grants per unit by €5,000. The policy also allows for the conversion of non-residential spaces into housing, offering flexibility and potentially unlocking underutilised urban real estate. To enhance tenant well-being and manage living expenses, electricity limits for occupants have been substantially raised from 200 to 500 kilowatt hours annually, alongside an upward revision of income thresholds for applicants, thereby widening access to these facilities.
Complementing the student housing drive is a revitalisation of affordable housing schemes, spearheaded by the Cyprus Land Development Organisation (Koag). Having been reactivated with a substantial €28 million in state funding, Koag is poised to make a tangible impact within the current year. The organisation has set an ambitious target of delivering 244 affordable units for outright purchase and 192 units for rental, in addition to over 2,500 new units currently in the pipeline. Further bolstering these efforts, an additional 22 applications are projected to yield more units, facilitated by €11.5 million in contributions to Koag’s dedicated affordable housing fund.
The government's commitment to affordability extends to supporting vulnerable populations. Displaced families, a group particularly affected by housing instability, may benefit from an additional 20% in financial assistance. In a synergistic approach, the state is facilitating the combination of various schemes with support from the Ministry of Energy, potentially enabling total state assistance to reach up to €100,000 for eligible recipients. A key tenet underpinning the acceleration of all these housing projects is a concerted effort to simplify licensing processes. This streamlining is anticipated to enable over 5,500 units to commence construction a full year earlier than initially projected, a significant acceleration in addressing the nation's housing deficit. The overall impact of these multifaceted reforms is expected to be a marked increase in the availability of both student and affordable housing, alongside a more dynamic and responsive construction sector.