**Government Defends Housing Policy After Disy Criticism**
The Cypriot government is standing firm on its housing policy following criticism from the opposition party Democratic Rally (Disy), which has labeled the government's efforts to address the housing crisis as insufficient. The Interior Ministry emphasized the administration's commitment to tackling housing issues, particularly for young people, who face significant challenges in securing affordable homes.
In a statement released on Wednesday, the Interior Ministry outlined the government's housing strategy, which has been a top priority since taking office. The ministry acknowledged the complexities of the housing crisis, stating that it "cannot be solved overnight" and requires a multifaceted approach involving coordinated policies, investment, and ongoing reforms.
The government's housing strategy, developed over the past two years, is centered on two main pillars: increasing the supply of housing and enhancing access to affordable accommodation for citizens. The ministry asserted that the current housing policy is informed by technical and economic studies, as well as discussions with stakeholders in the housing market, all while maintaining a focus on economic stability.
In response to Disy's criticism, the ministry highlighted several initiatives that it claims surpass the proposals put forward by the opposition party. One of the key measures is the introduction of fast-track licensing procedures aimed at reducing bureaucratic delays. As a result, approximately 10,000 residential units have received approval and are anticipated to be constructed one to two years earlier than would typically be expected.
Additionally, the ministry reported a significant increase in building density, with a 45 percent rise attributed to planning incentive schemes and the Build to Rent program. These initiatives are projected to contribute around 2,500 new homes to the market in the coming years, including approximately 400 units designated as affordable housing.
The government has also expanded its housing grant scheme for young individuals and families under 41 years of age. Initially set to benefit 400 applicants, the number of beneficiaries has been increased to around 700, reflecting the government's dedication to addressing social needs. Over 1,400 individuals and families have already received or are expected to receive financial assistance through these housing schemes.
Moreover, the ministry pointed to the revitalization of the Cyprus Land Development Corporation (Koag), which had been largely inactive under the previous administration. With enhanced responsibilities and increased funding, Koag is currently advancing the construction of 244 housing units for sale and 192 rental units at affordable prices, while also promoting the subdivision of 135 residential plots across various districts.
The government has also announced plans for the construction of 500 affordable rental units on state-owned land, alongside a scheme designed for collective accommodation facilities aimed at workers in the retail, industrial, and tourism sectors.
In addressing the broader context of rising property prices, the ministry acknowledged that this is a challenge faced across Europe. It argued that the increase in housing costs cannot be solely attributed to supply and demand dynamics but is also influenced by external factors, including inflationary pressures, particularly in the energy sector.
Concluding its response, the Interior Ministry reiterated its commitment to addressing the housing crisis through comprehensive and adaptive policies, aiming to provide solutions that meet the needs of the population while navigating the complexities of the current economic landscape.