President Nikos Christodoulides announced Tuesday the construction of around 500 new housing units on state land across Nicosia, Limassol, Larnaca and Paphos. The government will offer these homes at affordable rent to families and single persons, prioritising young people based on clear criteria.
The Town Planning Department already selected the plots. Large complexes will achieve economies of scale.
Construction will cost approximately €70 million. State land adds another €7 million in value. Private developers will win plots through open tender using the Design-and-Build method, while the state retains ownership.
The Cyprus Land Development Corporation (KOAG) will handle letting and management, using its proven affordable-rent experience.
Interior Minister Konstantinos Ioannou launched the new Collective Worker Accommodation Scheme targeting high-demand sectors (industry, tourism, retail).
Main features:
- Smaller units and fewer parking/common spaces
- Example: an 80 m² three-bedroom flat can now house up to 12 workers instead of 6
- One parking space per 24 residents when public transport serves the area
- Developers can build units in existing or new residential, mixed, commercial or tourism projects in designated zones
The Order takes effect immediately after publication in the coming days.
President Christodoulides stated that the measures prove the government’s commitment to its housing policy; both social and developmental. Total spending on housing now exceeds €300 million thanks to disciplined finances.
Both leaders stressed the plans increase supply and help lower- and middle-income citizens, especially young families.
Also read: Christodoulides: Housing to be key priority of Cyprus’ EU Presidency
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