After months of uncertainty and financial difficulties, construction has resumed in Limassol on the first affordable rental housing project led by the Cyprus Land Development Corporation (KOAG). The goal of the project is to provide residents with high-quality housing at prices significantly below market levels.
Work began in June 2025 in the Agios Nikolaos area, and the official foundation-laying ceremony is scheduled for January 2026. The first apartments are expected to be handed over to tenants in 2027.
State Support Revives the Project
The program was at risk after funding was cut following the closure of the Citizenship by Investment Program (CIP), which had previously allowed the state to raise capital through investor passports. The KOAG project was saved thanks to a government decision to allocate €16 million in state aid. This became the decisive factor that allowed the organisation to lift all restrictions and restart construction.
KOAG president Elena Kousiou emphasized that it was the government’s intervention that made the restart possible:
“This is not just the construction of housing — it is the execution of a social mission aimed at supporting people who struggle to find affordable homes. Behind every such project stand those who believe in doing good and work for the benefit of society.”
Affordable Housing for Limassol Residents
The project in Agios Nikolaos is the first phase of KOAG’s wider social housing program. The total construction cost is estimated at €22 million, most of which is covered by the state subsidy.
Phase one includes 138 apartments across four six-storey residential buildings. Of these, 94 units will remain under KOAG ownership, while 44 apartments will be handed over to the Limassol municipality for allocation to low-income residents.
Rental prices are expected to be 25–30% below market rates, offering significant relief to residents of Limassol, where housing prices have reached record highs.
Phase Two — Another 600 Apartments and New Urban Dynamics
After completing the first phase, KOAG plans to launch a second project in the Agios Ioannis area. In total, the organisation intends to construct around 600 apartments across the two districts of Limassol. Beyond improving living conditions for many Cypriots, these projects are expected to stimulate urban renewal and promote social integration.
Outlook: A Step Toward Easing the Housing Crisis
The resumption of construction marks an important signal for the Cyprus real estate market. The government and KOAG are prioritizing sustainable development and social responsibility, aiming to restore balance between housing supply and demand.
Experts note that the Limassol project could become a model for other cities facing severe shortages of affordable housing. In the future, similar initiatives could not only ease rental pressure but also support the national economy by creating jobs and improving urban quality of life.