KOAG: Affordable rent and housing are coming in Cyprus

На Кипре в самом разгаре строительство бюджетного жилья для малоимущих
3 October 2020 Liza Medvetskaya

The housing policy of the Cyprus Land Development Organization (KOAG) for affordable housing and affordable rent is being implemented, meeting the needs of low- and middle-income families.

The construction of KOAG houses in Pano Polemidia and Kokkinotrimithia is currently underway. The goal is to create as many housing units as possible in Nicosia, Limassol, and Larnaca in the coming years. These cities face a severe problem due to the number of rents.

The promoted plans and projects within the organization's development program were transferred from the podium of the 14th Land Development Conference by the Chairman of the Board of Directors of KOAG, Marios Pelekanos.

As he mentioned, in the development program of KOAG, there is so far planning for the construction of 180 housing units as follows:

  • 47 units in Kokkinotrimithia
  • 59 units in Polemidia
  • 16 units in Kaimakli
  • 21 units in Larnaca parish of Sotiros and
  • another 37 units in the parish of Agios Nikolaos in Larnaca

From the above projects, 15 two-storey houses of three bedrooms in the complex ADONIS II, in Pano Polemidia, in Limassol, are under construction, homes ready in six to eight months. Simultaneously, another eight two-storey three-bedroom houses are being built in the DANAI V complex in Kokkinotrimithia, for which the COAG receives applications from interested parties.

Besides, the construction of 16 housing units in Kaimakli, 30 housing units in Kokkinotrimithia, and 12 housing units in Polemidia will begin in the next period. Mr. Pelekanos clarified that the construction works would start because there will be real interest from the public.

Mr. Pelekanos clarified that the organization would proceed to change the categories for the income criteria, to create population mixtures so that there is no stigmatization of areas and persons who will benefit from the housing policy of KOAG.

In particular, three categories will be created:

A. The moderately paid households, ie, those who will be able to buy a unit from the organization at an affordable price

B. The people who will come from the lowest-paid households and will rent at affordable rent,

C. A third category between moderate and higher-paid

На Кипре в самом разгаре строительство бюджетного жилья для малоимущих

Affordable Housing Plan

This category's housing units will be available at the price of the average construction cost, as published by the Statistical Service of Cyprus for houses or apartments, depending on the proposed development.

It is worth noting that during the first application period, 282 applications were submitted as follows:

  • Nicosia 150 (56%)
  • Limassol 81 (30%)
  • Larnaca 23 (9%)
  • Paphos 13 (5%)
  • Famagusta 1   

As it turns out, the most significant demand seems to be in Nicosia and Limassol, cities that present a picture of high rents with citizens looking for alternative and economical options:

  • Have the required advance payment of 20% (from 25%) of the sale price, including savings or housing assistance from the state (eg, YMAPE).
  • Have no other loans that hinder their ability to obtain housing
  • Repayment capacity test (loan repayment capacity)
  • Income stability

Affordable Rent Plan

This is a new program for the Cypriot society, which envisages the elaboration and implementation of a plan to provide affordable housing.

The goal is to meet current and future roofing needs

  • low-paid families,
  • single-parent families,
  • single people,
  • students and
  • seniors.

These units will be given based on income criteria (for low-paid). Simultaneously, the management and maintenance of buildings and public spaces will be undertaken by KOAG in cooperation with the private sector.

In particular, the opening of the affordable rental market provides for:

  • The implementation of housing solutions that touch the problems of low-paid households that could not benefit from the previous programs of the organization.
  • Zero rental cost for families eligible for rent subsidy from the state.
  • The long-term regulation of rental prices in the market, since this plan will remove from the market the low-paid households, something that will affect the supply-demand balance.
  • Avoiding problem loans that burden the state and households.
  • Low unit maintenance costs which implies the increase of the available incomes of the tenants.
  • Avoid stigmatization or ghettoization by the method of population mixing.
  • Production of quality and design upgraded units of high energy efficiency. 
  • Reduction of pollutant emissions. The units will be built within the urban centers.
  • Increase family time by reducing the time spent moving from work to home.
  • Development of communities and not just residential complexes, with opportunities for social relaxation, entertainment, socialization and work where possible.

The first phase envisages 150 housing units in Nicosia's central municipalities (Nicosia, Aglantzia, Agios Dometios, and Lakatamia). KOAG is already looking for land to construct these units, as it did not reach an agreement with the local government.

In the first stage, it is also planned to create 35 housing units in the city of Larnaca. The tender architectural results for Larnaca have already been announced, and KOAG is proceeding with the issuance of the required permits to begin constructing the units. 

As far as Limassol is concerned, the construction of 150 residential units is being promoted in the first phase, in cooperation with Limassol's Municipality. It is worth noting that in July, an agreement was signed for the development of Municipal Land in Limassol, to build more than 600 units (for housing and community services) over a period of five years. The estimated cost amounts to € 65 000 000

Source: inbusinessnews.reporter.com.cy
Photos: pixabay.com
5 October 2020 17:04
This is a very good help for the poor
5 October 2020 21:46
I would really like to get such housing :f09fa49e:a great opportunity to start living, not to exist
Kirill Ravchenko
Kirill Ravchenko
10 November 2020 15:13
It's about time!
Loredana Costencu
Loredana Costencu
28 March 2021 0:25
How can we apply for this project? 
Loredana Costencu
Loredana Costencu
28 March 2021 0:25
How can we apply for this project? 
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