Cyprus is moving ahead with its first affordable rental housing scheme, with construction on the initial phase of a new development in Limassol expected to begin by June, according to the Cyprus Land Development Organisation (Koag).
The ambitious project, a collaboration between Koag and the Limassol municipality, will see the creation of a small residential community in the Agios Nikolaos area, offering apartments at rents 25 to 30 per cent lower than current market levels.
The agreement for the land concession is set to be signed next Wednesday, paving the way for construction to start next month.
In total, around 600 apartments are planned across two locations in Limassol – Ayios Nikolaos and Agios Ioannis – with a combined development cost of approximately €100 million.
This includes both the construction expenses and the value of the municipal land being granted for the project.
In Ayios Nikolaos, where works will begin first, the plans include four six-storey apartment buildings with a total of 138 units.
The mix comprises 24 one-bedroom, 72 two-bedroom, 36 three-bedroom and six four-bedroom apartments.
Of these, 94 units will remain under Koag’s management, while 44 will be handed over to the Limassol municipality. The budget for this phase alone exceeds €22 million.
Koag’s Vice-President Theseas Ioannou confirmed by speaking in philenews the timeline and scope of the development, calling it the culmination of more than three years of planning.
“This marks the first affordable rental housing initiative in Cyprus and the first time Koag is working directly with a local authority on such a project,” he said.
Further developments are also in the pipeline. Beyond Limassol, Koag is pushing ahead with plans to deliver over 400 additional homes across Cyprus, intended for both sale and rent.
A limited number of three-bedroom units are currently available in the ‘Ekali’ project in Kaimakli, as well as in the ‘Ianthi’ development in Larnaca.
Meanwhile, work is ongoing on more three-bedroom homes in Kokkinotrimithia.
By the end of 2025, the organisation aims to begin construction on another 135 units in various parts of the island, including 29 residences in Pano Polemidia, 15 apartments in Agios Dometios, 18 in Lakatamia, 48 in Palouriotissa and 25 in Kaimakli, along with 10 additional homes in Kokkinotrimithia.
