student housing — student housing — The government has unveiled a significant update to its housing policy, focusing on the construction of new student accommodation and enhancements to existing affordable housing schemes. This initiative aims to tackle the ongoing shortage of available rooms for students near higher education institutions.
- Moreover, an additional 22 applications will contribute to the affordable housing fund with €11.5 million, further enhancing the efforts to meet the growing demand.
Student housing: Addressing Student Accommodation Shortages
Interior Minister Constantinos Ioannou announced the new plan, highlighting its importance in providing adequate housing for students. “Student accommodation units will consist of a maximum of ten rooms per unit,” he explained. The design allows for a five-room unit to be established within just 77 square metres of usable space, with the potential for these units to be integrated into either new or existing developments located within one kilometre of registered universities.
Relaxed Regulations and Increased Support
The revised housing policy includes relaxed parking requirements, now set at one space for every five rooms. Additionally, grants allocated per unit will increase by €5,000, and non-residential spaces can now be converted into residential housing. Notably, the electricity limit for tenants has been raised from 200 to 500 kilowatt-hours per year, allowing for greater flexibility in living arrangements.
In a further effort to support those in need, income thresholds for applicants have been elevated. Displaced families will benefit from an additional 20 per cent in financial assistance, which could mean total state support reaching as high as €100,000 by combining various schemes with the energy ministry.
Investment in Affordable Housing
The Cyprus Land Development Organisation (Koag) is set to play a crucial role, backed by €28 million in state funding. This initiative aims to deliver 244 affordable housing units for sale and an additional 192 for rent within the year, alongside a commitment to constructing over 2,500 new housing units.
Moreover, an additional 22 applications will contribute to the affordable housing fund with €11.5 million, further enhancing the efforts to meet the growing demand.
Streamlined Processes for Faster Housing Supply
To expedite the housing supply, the government is simplifying the licensing process, aiming to facilitate the construction of over 5,500 housing units a year earlier than previously scheduled. This change comes in response to persistent concerns raised by students and MPs regarding the high rents near public universities, especially at the Technological University in Limassol (Tepak), where monthly rents have reached €800 to €1,000. Such costs have forced many students to either commute from distant locations or opt for private institutions.
Support from Political Leaders and Business Community
Local politicians, including Disy MP George Karoullas and Education Committee Chairman Chrysanthos Savvidis, have underscored the urgency of expanding student accommodation to align housing availability with the growth of public universities. Minister Ioannou has reiterated that the government’s housing strategy is primarily directed towards young individuals, families, and those from low to middle-income backgrounds, all while promoting sustainable development.
The Chamber of Commerce (Keve) has welcomed the updated housing policy, labelling it as a decisive and timely intervention that directly addresses the pressures faced by households, students, and the economy at large. In a statement, Keve remarked that these measures send a positive signal to the market, fostering investment, job creation, and social cohesion while laying a foundation for sustainable growth and broader access to housing.
Applications for the new student accommodation and revised housing schemes will be accepted from March 2 until December 31, 2027, marking a pivotal moment in addressing the housing needs of students and the community.
