In the Strovolos area of Nicosia, one of the most anticipated projects of recent years has officially begun. On Monday, December 29, the Cyprus Ministry of Interior and the Cyprus Land Development Corporation (KOAG) signed an agreement to allocate additional funding of €12 million for the implementation of a social housing project for rental purposes. The agreement was signed on behalf of the ministry by the Permanent Secretary of the Ministry of Interior, Elikkos Ilias, and on behalf of KOAG by its General Director, Eleni Simeonidou.
According to a statement by the ministry, the agreement is a logical continuation of the Council of Ministers’ decision to expand KOAG’s funding. The funds will be used to construct 54 modern two-bedroom apartments in the Municipality of Strovolos, intended for participants in the affordable rental housing program. The project is aimed at families and households that are struggling to access the private rental market due to rising prices and limited supply.
Part of the National Housing Strategy
The new development in Strovolos fits into the broader state housing policy and is part of a key pillar focused on increasing the housing stock. Particular emphasis is placed on creating affordable apartments that will help stabilize the market and reduce pressure on middle- and low-income households. In 2025, Cyprus recorded increased demand for rental housing, making the launch of such projects especially timely.
The government emphasizes that through a series of decisions it is strengthening the financial sustainability of KOAG, enabling the organization not only to implement its own development plans but also to launch additional projects that directly contribute to easing the housing crisis in urban areas.
Construction in 2025 and Future Plans
Since President Nikos Christodoulides took office, KOAG’s operations have effectively been relaunched. The organization has received expanded powers to practically implement state housing programs. In particular, the state has already invested €16 million in the construction of affordable rental housing in the Agios Nikolaos area of Limassol. Thanks to additional measures and new revenue sources, KOAG has managed to accelerate the launch of several projects across the country.
During 2025, construction of 181 affordable housing units has begun in phases, while the start of another 258 apartments in various regions of Cyprus is planned in parallel. These projects are expected not only to expand the supply of affordable housing but also to have a moderating effect on rent increases, which in recent years have become one of the island’s most pressing social issues.
What This Means for Strovolos Residents
For residents of Strovolos, the launch of the new project means the availability of modern, energy-efficient, and financially affordable apartments designed for long-term rental at controlled rates. Real estate market experts note that such initiatives are gradually forming a new segment of social rental housing in Cyprus, which has previously been underdeveloped. In the coming years, projects like these are expected to become a key tool for stabilizing prices and improving the quality of life for thousands of families across the country.