“500 homes” versus a growing market: will Cyprus’s new housing program help?

In Cyprus, a new turn in housing policy is being discussed: the government is promoting a plan to build around 500 residential units on state land with the participation of the Cyprus Housing Organisation (KOAG) and the Built to Rent model — where housing is constructed specifically for rental at affordable prices.

The idea behind the program is not only subsidies and incentives, but a more active role for the state in the market: apartments and houses will be offered at reasonable rental rates to ease pressure on tenants, especially young people and young families.

At the same time, the publication raises the key question of scale. Against the backdrop of housing price indices rising by about 5% per year and 4,444 purchase and sale transactions registered in a single quarter, 500 new units may provide a “breather,” but may not necessarily change the overall balance of supply and demand.