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Major Housing Initiative Announced
The Cyprus Land Development Corporation (Koag) has announced the construction of 220 affordable housing units to begin before the end of 2025. This effort is part of a broader national plan to tackle rising housing costs and the shortage of available properties across the island.
Focused Development in Nicosia and Limassol
The majority of the housing units will be located in Nicosia and Limassol, two regions facing high demand and growing urban populations. These homes will be offered for sale or rent at accessible prices, aimed especially at low- and middle-income families.
A Top Government Priority
Interior Minister Constantinos Ioannou described housing as “one of the most pressing social challenges”, during a press conference in Nicosia. He stated that affordable, safe, and decent housing is a fundamental right for all citizens and a core part of the government’s strategic agenda.
Delayed Limassol Project Finally Starts
A previously stalled housing project in Ayios Nikolaos, Limassol, will finally begin construction this May. It will include 138 rental units, specifically allocated for individuals and families who meet Koag’s criteria for state housing assistance.
New Plots Prepared Across Cyprus
In parallel with the above developments, land preparation will begin this year for 135 new plots across Nicosia, Larnaca, Limassol, and Paphos, to expand future housing opportunities.
Koag Transforms into a Key Housing Partner
Koag, once limited in activity, is now stepping up as a major player in housing delivery. In 2023, it completed just 16 units in Nicosia. In 2024, 24 new homes are under construction in Larnaca, with many more planned thanks to increased funding and authority.
€12 Million Already Allocated to Housing
Over €12 million has already been committed to Koag’s affordable housing program through urban development incentives, including schemes like Build to Rent, Renovate & Rent, and others driven by the Interior Ministry. These funds have accelerated projects previously scheduled for later years.
Public and Private Sector Must Collaborate
While Cyprus launches 220 housing units as a significant milestone, the minister emphasized that Koag cannot resolve the housing shortage alone. Developers and private-sector stakeholders are encouraged to take advantage of available incentives to contribute to the solution.
Proposed Regulatory Changes
To support housing expansion, the ministry is proposing key planning adjustments:
- Lifting restrictions on apartment types in tourist zones
- Reducing the required land area per apartment
- Expanding Build to Rent schemes to include commercial zones
These changes aim to boost the number of available units and enable mixed-use developments that support working families.
Apartments for Sale at €125,000
Koag chairwoman Elena Kousiou-Hadjidimitriou announced that 75 apartments will be offered for sale at a fixed price of €125,000, providing an attainable path to homeownership for people priced out of the current market.
A Broader Vision for Cyprus
“This isn’t just about housing,” said the Minister. “It’s about building communities and futures.” With the state, local authorities, and private developers working together, Cyprus launches 220 housing units to mark a new chapter in national housing policy.
Discover more property news and home advice by reading our other blogs on Properush. Stay informed about the latest rental price trends for apartments and houses in Cyprus to make the best property decisions.
Source: Cyprus Mail
