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Cyprus reviews rural planning zones to tackle housing crisis

Cyprus’ Ministry of the Interior is weighing a series of changes to rural planning zones as part of wider efforts to confront the country’s mounting housing crisis. The developments were outlined in a parliamentary response issued by Interior Minister Konstantinos Ioannou to Paphos MP Charalambos Pazaros.

In his written reply, Ioannou acknowledged that the housing issue has reached critical levels, affecting both major urban areas and rural communities. He noted that revisions of planning zones are already under continuous review, forming a key pillar of the government’s strategy to promote balanced growth and secure long-term, sustainable housing.

As part of the ongoing update of the Rural Policy Statement, the Ministry is currently examining proposals that could reshape development prospects in several communities. Among the measures under consideration are:

  • The expansion of residential zones in areas where a genuine, documented housing need has been identified.
  • Incentive-driven initiatives to breathe life back into existing settlements by encouraging the restoration and reuse of older housing stock.

According to Ioannou, any change to zoning boundaries will proceed only after full technical assessment. Demographic trends, socio-economic data, available infrastructure and environmental impacts all form part of the Ministry’s decision-making criteria.

Alongside the planning zones review, the government is continuing its targeted housing schemes for rural, mountainous, border and disadvantaged regions. These initiatives — including the Housing Scheme for the Revitalisation of Mountainous, Borderline and Disadvantaged Areas and the Housing Scheme for the Revitalisation of Specific Rural Areas — are designed to support local economies and slow population decline in small communities.

The Minister also confirmed that the overhaul of rural planning zones is being rolled out in two phases due to the large number of communities involved. Local councils participating in Phase A submitted their proposals between December 2022 and September 2023, while submissions for Phase B run from January to June 2025. The Ministry is now in the process of evaluating all recommendations received.

Once the review is concluded, the government will issue a formal notice in the Official Gazette, and updated planning maps will be published online by the Department of Town Planning and Housing.

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