The development of state housing construction in Cyprus is reaching a new level. The Cyprus Land Development Organization (KOAG) is implementing a large-scale investment program under which affordable housing will soon appear in all cities of the island.
The organization is gradually transforming into a key executive and management mechanism of state housing policy with financial and institutional support from the Ministry of Interior and the government.
Today, KOAG is actively working to promote a housing provision program for citizens with middle income levels, affordable rental schemes, and the administration of state housing initiatives. These measures aim to increase real estate affordability amid rising prices and sustained market demand.
Results of 2025: new apartments and large-scale expansion of development
In 2025, KOAG completed the first social project IANTHI in the municipality of Larnaca, including 24 apartments. At the same time, construction started in Kokkinotrimithia, where 10 houses are being built, in the municipality of Polemidia — 29 houses, as well as in the areas of Lakatamia, Agios Dometios, Kaimakli, and Palouriotissa. In addition, the subdivision of 137 land plots is being carried out in the areas of Nicosia, Limassol, Larnaca, and Paphos for subsequent residential development.
Within the framework of the state affordable rental program, large projects are being implemented in Limassol, where 138 apartments will appear, and in Nicosia — 54 apartments. Significant support is provided through state funding in the amount of 28 million euros, which highlights the strategic importance of these initiatives for social stability and support for young families.
Projects for sale: modern residential complexes
In Kokkinotrimithia, construction of the DANAI V complex has begun, which will continue the existing development. The project includes 10 houses, of which 8 are semi-detached and 2 are detached. All houses have 3 bedrooms and are aimed at families seeking modern and energy-efficient housing in a suburban area.
In the Kaimakli area, the EKALI project is being implemented — a 4-story residential building with 16 apartments, including eight 2-bedroom and eight 3-bedroom units. The property is located in a border area, allowing potential owners to benefit from financial support under the program for the revival of mountainous and border areas operating under the auspices of the Ministry of Interior. The building borders a public green area and provides covered parking, storage rooms, and infrastructure for people with disabilities.
The IANTHI project in Larnaca has already been completed. It is located at the entrance to the city next to the Metropolis Mall shopping center. The first phase includes two 4-story sections with 12 apartments each. Of the 24 apartments, 8 are 2-bedroom and 16 are 3-bedroom. The architectural concept was developed following a competition.
Projects under construction and design
In the Pano Polemidia area of Limassol, 15 two-story three-bedroom houses that are part of the ADONIS project are currently under construction. The developer plans to complete the project within six to eight months.
In Agios Dometios in Nicosia, a 5-story complex DOMETIOS with 15 apartments is being built, including 5 one-bedroom, 5 two-bedroom, and 5 three-bedroom units. The building will include covered parking and all necessary infrastructure, including facilities for people with disabilities.
In Palouriotissa, construction of two 6-story buildings is planned on Agios Nikolaos Street. The IOLI complex is designed for 48 apartments, including twelve 3-bedroom and thirty-six 2-bedroom units. The location provides convenient access to main roads while offering tranquility thanks to its proximity to a cul-de-sac street and a public pedestrian zone. The western part of the plot borders a green area.
In Kaimakli, construction of a 5-story building ERMIONI is planned at 49 Keramikos Street. The project includes 25 apartments, including five 3-bedroom, fifteen 2-bedroom, and five one-bedroom apartments. Work is expected to begin in April. Potential buyers will be able to benefit from the state support program, making housing acquisition more accessible.
In Lakatamia, a 3-story building ALEXANDRA with 18 two-bedroom apartments will appear. Construction will begin in March. The project is focused on comfort and functionality, including spacious verandas, natural lighting, and infrastructure for people with disabilities. The complex will border a public green area and provide covered parking spaces.
State support and market prospects
The activation of KOAG projects reflects the government’s intention to stabilize the real estate market and increase housing affordability amid rising prices in the private sector. In recent years, housing prices in Cyprus have shown steady growth, especially in large cities and coastal areas. The expansion of programs for middle-income citizens and rental subsidies helps partially offset market pressure and maintain social balance.
The development of new projects in Nicosia, Limassol, Larnaca, and other regions creates a solid foundation for long-term state housing policy. Funding amounting to tens of millions of euros, active construction of dozens of houses and apartments, and the use of modern architectural solutions confirm that KOAG is becoming a central tool for implementing affordable housing in Cyprus.