cyprus rent — cyprus rent — In a significant shift in the Cypriot housing market, rent costs now often match or even exceed monthly mortgage payments. This change has led many citizens to reconsider their housing options, with a growing trend towards home purchasing.
Interior Minister Constantinos Ioannou highlighted this development in a recent response to DIKO MP Christos Senekis. He pointed out that the monthly rent has increased to the point where it is comparable to mortgage repayments, altering the traditional choice between renting and buying.
Data provided by Ioannou revealed a decline in the number of displaced persons applying for rental subsidies, dropping from 4,509 in 2022 to 3,155 in 2024. This decline coincides with an increase in applications for property acquisition, as more individuals opt to purchase homes instead of renting due to rising rental costs.
Ioannou stated, “Based on the data maintained, a slight decrease in applicants for rental subsidy and a simultaneous increase in applications for purchasing or construction schemes has been observed over the last three years.” This trend underscores the impact of soaring rents on housing decisions.
In response to the ongoing increase in rental prices, the government has raised subsidy amounts by approximately 15% starting from 1 January 2024. This adjustment aims to alleviate some of the financial pressure on those still seeking rental assistance.
The KtizO housing scheme, designed specifically for displaced persons, is currently in progress, with an expected cost of around €130 million over a decade. This initiative is part of a broader effort to enhance provisions for acquiring owner-occupied housing in Cyprus.
Since 2013, the number of beneficiaries receiving housing assistance has increased following a policy change that recognises the children of displaced women as refugees. This adjustment has allowed more individuals to qualify for support, expanding the reach of housing assistance programmes.
Senekis also inquired about potential updates to the income criteria governing the Rental Subsidy Scheme, which have not changed in over 15 years. In reply, Ioannou mentioned that a Bill to revise these criteria is currently with the Law Office for legal vetting.
The proposed changes aim to abolish certain articles of the Rent Control Law related to rental subsidies for displaced persons. Ioannou explained, “With the approval of the Bill, specific assessment criteria will be submitted to the Council of Ministers for approval, which will include both the method of calculating incomes and new tables of income criteria.” This initiative is designed to increase the number of displaced beneficiaries eligible for assistance.
Examining the budget implementation for the Rental Subsidy, Ioannou noted that over the 2022-2024 period, an average of 90% of the allocated funds has been absorbed. In 2022, the absorption rate was 93.54%, followed by 93.76% in 2023, and 85.39% in 2024.
He added that any unspent savings from the Rental Subsidy are redirected to other housing schemes aimed at supporting displaced persons in purchasing, constructing, or repairing homes, ultimately benefiting a larger number of applicants than originally planned.
