Interior Ministry unveils €780m budget with €70m push for housing
The 2027 spending plan channels over €70 million into affordable housing, including 523 plots for families and 460 state-land rental homes co-funded by the EU.
The Interior Ministry presented its 2027 budget and the 2027–2029 medium-term fiscal framework to the parliamentary finance committee on 9 November 2026, as reported by the ministry. Minister Constantinos Ioannou put total spending at €780 million, up €1.5 million on the originally approved 2026 figure and €110.5 million above actual 2025 outlays.
Development spending accounts for €263.5 million, or 33.1% of the total, while recurrent expenditure stands at €517.4 million. Revenues are projected at €246.3 million.
The headline housing commitment exceeds €70 million: €32.5 million for the subsidy schemes, around €22 million expected from building-ratio incentives and the Build to Rent programme, and roughly €17 million in value from 523 plots to be released to families.
What it means for residents
The numbers matter less than the timing: most of this money reaches households through schemes that open, close and get re-announced, so keeping an eye on application windows is the practical step.
- Cheaper plots. State land in communities islandwide is offered at 25% of the general valuation, which can substantially cut the cost of building a first home.
- Rental supply. Grants for renovating empty homes and putting them on the rental market, plus 460 affordable units planned on state land in Nicosia, Limassol, Larnaca and Paphos, though construction is not due to start before December 2027.
- Faster permits. Simplified licensing has already delivered around 3,000 house and duplex permits within 40 working days and over 1,400 apartment permits within 80 days.
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