One of the largest affordable housing programs in recent years is gaining momentum in Cyprus. The Cyprus Land Development Corporation (KOAG) is implementing a project comprising 439 residential units, with prices and rental rates set below market levels. Some of the properties are already under active construction, others are preparing for launch, and some homes have been fully completed and are awaiting handover to new owners. The project covers several regions of the island and is aimed at citizens who meet the established eligibility criteria.
Where construction is already underway and who will move in first
According to KOAG Director General Eleni Simeonidou, work has already begun on 181 units out of the total 439. The largest segment is concentrated in the municipality of Limassol, where 138 rental apartments are being built in the Agios Nikolaos area. The project includes four six-storey buildings with apartments ranging from one to four bedrooms. The housing is being developed on municipal land under a land-exchange scheme, which makes it possible to keep rental rates significantly below current market prices in Limassol.
Another 43 units under construction are located in other areas, including Kokkinochoria. In Larnaca, some homes are already fully completed and will be handed over to buyers in the near future, making the city one of the first where the program is beginning to deliver tangible results.
What is planned for 2026
Construction of a further 258 residential units is planned for 2026. These projects are at various stages, ranging from tender preparation to construction already underway. In Strovolos (Nicosia district), the construction of 54 two-bedroom rental apartments is planned. The laying of the foundation stone is scheduled for January 12, with completion of all works expected by July 2026.
Additional projects are also being prepared in other suburbs of the capital. In Lakatamia, construction of housing for subsequent sale is planned to begin in March 2026, while in Palouriotissa it is scheduled for April 2026. The exact number of units in these areas has not yet been announced; however, the authorities emphasize that this represents a significant expansion of the housing stock.
Government support and impact on the market
The program is being implemented as part of the state’s comprehensive housing policy and is aimed at increasing housing supply amid rising prices. The project is supported by a €12 million grant from the Ministry of Interior, allowing KOAG to keep housing prices and rents below average market levels. At present, it has been confirmed that 138 apartments in Limassol and 54 apartments in Strovolos will be rental units, while all other properties are intended for purchase.
Experts note that such projects are particularly relevant against the backdrop of rising property prices, which in recent years have exceeded 10%–15% annually in a number of regions, especially in Limassol and Larnaca.
How to apply for housing
Applications will be accepted exclusively through the new official KOAG website and only after construction of each specific project has begun. This approach makes it possible to fix the final cost in advance and ensure transparency for future tenants and buyers. The authorities emphasize that the program is designed to reduce pressure on the housing market in the long term and to expand access to real estate for a broad segment of the population.