The Government of Cyprus Announces the Construction of 500 Affordable Housing Units on State-Owned Land

The Government of Cyprus has announced a major new housing initiative aimed at addressing the ongoing housing shortage. President Nikos Christodoulides confirmed that approximately 500 affordable housing units will be constructed across Nicosia, Limassol, Larnaca and Paphos, with a total project value of €70 million.

The residential units will be developed on state-owned land with an estimated value of €7 million. The plots have already been designated by the Department of Town Planning and Housing. Specifically, the projects will be located in Latsia-Geri in Nicosia, the areas of Kapsalos, Kourion-Episkopi, Moni and Amathus-Agia Paraskevi in Limassol, Voroklini in Larnaca, and Achelia in Paphos.

The new homes will be allocated exclusively for affordable rental housing and will be offered to families as well as single individuals, based on specific eligibility criteria. As emphasized by the President, priority will be given to the younger generation. The announcement was made during the presentation of the government’s housing programmes at the Presidential Palace.

Under the proposed implementation model, the state-owned plots will be made available to the private sector through a competitive bidding process using the Design and Build method. Ownership of both the land and the completed housing units will remain with the state. The Cyprus Land Development Corporation will contribute its expertise in the allocation and management of the units through its affordable rental schemes.

President Christodoulides stated that this project complements the housing measures already being implemented by the government. He stressed that housing policy is among the top national priorities and noted that total government investment in housing now exceeds €300 million. These expenditures, he explained, are viewed not as a cost, but as a long-term investment with strong social and economic returns.

At the same event, Minister of Interior Constantinos Ioannou presented a new scheme for the Construction of Collective Accommodation Units. This initiative targets workers employed in industry, tourism and trade, including seasonal workers, and aims to reduce pressure on the private rental market.

The scheme allows for the construction of specialized residential units with reduced floor areas, fewer parking spaces and optimized common areas, while ensuring dignified living conditions. According to the Minister, the programme has a dual objective: supporting the smooth operation of key productive sectors and gradually restoring balance between housing supply and demand, contributing to the stabilization of purchase and rental prices.

Overall, the government’s housing policy continues to focus on increasing housing stock and supporting low- and middle-income households, with particular emphasis on young families. These initiatives are expected to have a tangible impact on the Cyprus real estate market in the medium term.