On Thursday 25 July, the Cyprus Land Development Organisation (KOAG) signed a contract with Evamek Development Ltd (a member of the EVANGELOU & FRANTZIS Group) for the construction of new affordable housing units in Limassol.
According to the press release, the project will be carried out in the Ipsonas community. KOAG said that it intends to submit a preliminary application for urban development incentives. This will increase the construction rate on the selected site by 25%, resulting in the construction of 6 multi-storey buildings, in which flats will be made available to beneficiaries of the affordable housing programme.
KOAG noted that the ultimate goal of the Urban Planning Incentive is a partnership between the public and private sectors in an effort to increase the housing stock in Cyprus. The signing of the agreement between KOAG and Evamek Development Ltd proves that the public and private sectors can work harmoniously together to achieve common goals for the sake of the Cyprus of tomorrow and the well-being of its citizens.
As a reminder, in December 2023, the Cabinet approved an initiative that provides a number of incentives for the construction of affordable housing on the island.
In particular, the approved plan concerns the introduction of two new alternatives for the use of an additional building ratio, depending on the needs and plans of each interested developer.
In addition, the housing incentive to increase the maximum allowable development ratio has been increased:
- Up to 45% for residential areas with a build-up ratio of more than 1:1;
- up to 25% for residential areas with a building ratio of 1:1 or less.
However, these incentives apply as follows:
- for properties with a minimum net floor area of 1,000 m2 - the maximum allowable development ratio is 45%;
- for properties with a minimum net floor area of 4 thousand m2 - the maximum allowable development ratio is 25 per cent.
The use of an increased build-out ratio in a property under construction in accordance with the above conditions also obliges developers to provide housing:
- 25% of the floor area resulting from the increased building ratio to beneficiaries of the Affordable Housing Programme, the remainder may be used at the discretion of the owner (for residential zones with a building ratio greater than 1:1);
- 15% of the floor area resulting from the increase in the building ratio to beneficiaries of the affordable housing programme, the remainder to be used at the discretion of the owner (for residential zones with a building ratio equal to or less than 1:1).
It should be noted that KOAG will be the first organisation in Cyprus to apply these rules in practice.