The volume of property sales offered by the Cyprus Land Development Organisation (KOAG) leaves much to be desired, despite the affordable prices of apartments and houses.
This was stated by KOAG CEO Eleni Simeonidou on Tuesday 27 August.
According to her, the main reason is the lack of adequate financing for the programme's beneficiaries. In particular, it is difficult for those interested to obtain loans for the purchase of housing.
The interest of young couples and families in buying homes from the organisation is growing all the time, as the prices are very affordable. But the banks are reluctant to lend," said Simeonidou.
However, she stressed that there is a demand and need for affordable housing in Cyprus, so the organisation plans to promote its projects through advertising campaigns in the near future. Simeonidou gave some examples of the affordable housing KOAG offers. For example, a two-bedroom apartment in Larnaca, near the Metropolis shopping centre, can be bought for €157,000, and in Nicosia, in the Kaimakli area, for €197,000.
The head of KOAG explained that the procedure for buying a home from the organisation is that the beneficiary must submit an application to one of its offices, along with a package of necessary documents, confirming the existence of a down payment of 20% of the total cost of the home.
The applicant must then secure the financing of the remaining amount, either in cash or by means of a loan.
According to Simeonidou, if the buyer resorts to a loan, the bank usually announces its decision within a month: whether the application is approved or not. She also explained that the criteria for participation in the programme are changed from time to time by the Council of Ministers.At the moment, KOAG only has apartments for sale in Nicosia and Larnaca. The complexes in these cities will be completed by February 2025. However, the organisation's immediate plans include the construction of houses in the Polemidia area of Limassol.
Finally, Simeonidou mentioned that KOAG is implementing the following projects in the context of solving the housing problem in Cyprus
- 'Stroy-Sell' - sale of prefabricated houses and apartments.
- Build-Rent - 600 affordable rental apartments in Limassol over the next few years.
- Urban Incentives - affordable housing for sale by private individuals.