In a session held today, the Ministerial Council approved the detailed guides for the “Built to Rent” scheme on private land and the Revised Urban Development Incentives, marking the implementation kickoff of two key pillars of the new unified housing policy announced last October by the Ministry of Interior.
The two medium-term measures aim to increase the production of residential units and make them available in the affordable housing market.
Specifically, the “Built to Rent” scheme on private land involves the construction of a number of residential units by land development professionals, utilizing an additional building coefficient of up to 45% of the current one, with an obligation to allocate all additional units produced at an affordable rent for a minimum period of six years.
This innovative plan, a first for Cyprus, provides a strong incentive for private sector involvement, with the goal of boosting the market with an additional approximately 800 residential units over the next three years.
Furthermore, the Ministry of Interior has revised urban development incentives, aiming to increase the production and availability of new housing units by granting an additional building coefficient of up to 45% of the current one.
Land development professionals will be required to sell 25% of the units produced with the additional coefficient for affordable housing purposes.
These measures together constitute an attractive package for the construction sector, encouraging the provision of more units to the market while ensuring a minimum number of affordable housing units.
Simultaneously, by providing a free building coefficient, which is a state asset, the government invests in strengthening the social welfare system and offers solutions and choices to specific population groups facing difficulties in meeting their housing needs.
Detailed guides for both schemes are available on the Ministry of Interior’s website under the section “New Unified Housing Policy” (Built to Rent scheme on private land and Revised Urban Development Incentives).
