cyprus rent — Cyprus rent costs have now matched or surpassed mortgage payments, altering the landscape of housing choices for many citizens. Once, renting was a more affordable option compared to mortgage repayments, but this is no longer the case.
Interior Minister Constantinos Ioannou highlighted this significant change in a recent discussion with DIKO MP Christos Senekis. He revealed that the rising rental costs have led many to reconsider their housing options. Data shows a drop in the number of displaced individuals applying for rental subsidies, decreasing from 4,509 in 2022 to 3,155 in 2024, while interest in property acquisition has grown.
“Based on the data maintained, a slight decrease in applicants for rental subsidies and a simultaneous increase in applications for purchasing or construction schemes has been observed over the last three years,” Ioannou stated. This shift suggests that as rental prices climb, more people are opting for home ownership, where mortgage payments are now comparable to monthly rent.
The government has responded to the upward trend in rents by increasing subsidy amounts by approximately 15% starting on 1 January 2024. This move aims to alleviate some of the financial pressure on those still in need of rental support.
The KtizO housing scheme, designed specifically for displaced persons, is also in progress. This initiative is expected to cost around €130 million over a decade and aims to provide better housing options for those affected by displacement.
Ioannou also addressed concerns regarding the outdated income criteria for the Rental Subsidy Scheme, which have remained unchanged for over 15 years. He confirmed that the Service for the Care and Rehabilitation of Displaced Persons has sent a Bill to the Law Office for legal vetting, which aims to revise these criteria.
The proposed changes include the abolition of certain articles in the Rent Control Law, which govern rental subsidies for displaced individuals. This would pave the way for new assessment criteria regarding income and eligibility for the Rental Subsidy Scheme.
“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,” Ioannou explained. The goal is to expand the number of displaced beneficiaries eligible for assistance and to ensure the scheme operates more effectively.
On the financial front, Ioannou reported that over the past three years, more than 90% of the Rental Subsidy budget has been utilised, showcasing the ongoing demand for housing assistance. In 2022, 93.54% of funds were absorbed, followed by 93.76% in 2023, and 85.39% in 2024.
“Any savings are not left unspent but are transferred to other Housing Schemes for the displaced that relate to the purchase, construction, or repair of a house/apartment,” he noted, highlighting a commitment to ensuring that available funds are maximised to support housing initiatives.
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