The Cypriot government plans to revive its programme for selling state-owned land at preferential prices, which was discontinued in 2012. The new initiative is designed to support residents who can no longer afford to purchase land due to the sharp rise in property prices.
The programme will form part of the government's efforts to address the ongoing housing crisis, which has become one of the island's most pressing social challenges in recent years. The first plots are expected to be transferred to new owners during 2026.
How the State Land Sale Programme Will Work
The land will be distributed through two separate mechanisms. The first will be managed by the Cyprus Land Development Corporation (KOAG), which has traditionally focused on affordable housing projects. For the first time, KOAG will offer residential building plots rather than completed houses or apartments.
The organisation is currently completing inspections of 135 plots located across different parts of the island. The sites are situated in Ypsonas (Limassol District), Kokkinotrimithia (Nicosia District), Timi (Paphos District) and Dromolaxia (Larnaca District). Each plot will measure approximately 520 square metres. Some have already reached the final stage of the planning and approval process. The programme's main attraction will be the price: according to preliminary estimates, KOAG intends to sell the plots for roughly one-third of their market value.
At the same time, the Ministry of the Interior is developing its own parallel scheme under which land could be sold for approximately 25% of its officially assessed value, as determined by the Department of Lands and Surveys. This would allow eligible applicants to purchase land at highly favourable prices. State-owned land will be subdivided into individual plots and transferred to municipalities and community councils, which will be responsible for accepting applications and allocating the land. Before this process begins, local authorities will identify the areas where demand for new housing is greatest.
Who Will Be Eligible?
The programme will not be open to everyone. The government plans to apply the same eligibility criteria already used in existing affordable housing schemes. Applications will be assessed based on household income, social status and other factors used to determine the need for state support. As a result, the programme is primarily aimed at young families, low- and middle-income households, and first-time homebuyers.
KOAG is expected to become the first organisation to allocate plots, as preparations are already nearing completion. Provided all necessary permits are obtained on schedule, the first sales could take place as early as 2026.
If the initiative proves successful, the authorities may expand the programme by preparing additional state-owned land in other regions of Cyprus, increasing the supply of affordable residential property and helping to ease pressure on the housing market.
Why Is the Programme Returning After 14 Years?
Land and property prices in Cyprus have risen significantly over the past several years. The increase has been particularly noticeable in Limassol, Larnaca and Paphos, where strong demand from foreign investors and a limited supply of new developments have driven prices sharply higher.
According to recent research by the Central Bank of Cyprus, apartment prices continue to rise faster than house prices, while housing affordability remains one of the country's biggest challenges. At the same time, the government is implementing a programme to deliver more than 10,000 new housing units, accelerate planning approvals and expand support measures for first-time buyers.
The revival of the state land sale programme is viewed as another important tool for increasing housing supply, encouraging private residential construction and making home ownership more accessible for people living in Cyprus.