Cyprus will build 500 state-owned rental flats and charge tenants less than half the market rate as the government targets young families struggling with housing costs.
The €77 million scheme will deliver 300 two-bedroom units, 150 one-bedroom flats and 50 three-bedroom apartments across Nicosia, Paphos, Limassol and Larnaca. The state will retain ownership and award construction to private contractors through a Design and Build tender on government land.
Interior Minister Constantinos Ioannou said rents would stay below 50% of market rates in each city where the flats are built.
But tenants face a three-year wait. The government expects construction to start in roughly 18 months and take another 18-20 months to complete.
The flats will cost €2,325 per square metre including VAT, breaking down to €1,650 for construction, €198 for infrastructure, €165 for earthworks and €201 for supervision. One-bedroom units will cost €21 million, two-bedroom flats €42 million and three-bedroom apartments €7 million, with €7 million more for land.
The scheme is one of seven housing programmes the current government has launched, allocating over €300 million so far. The Interior Ministry is running parallel initiatives with the Land Development Organisation to expand housing supply and push down both property prices and rents.
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