Four months after the President of Cyprus, Nikos Christodoulides, announced the construction of 500 affordable rental apartments in partnership with the private sector, the state has finally taken the first practical step toward implementing this ambitious project.
On Tuesday, April 21, the Land Department announced a short, single-stage architectural competition through the electronic procurement system. The goal is to develop designs for high-quality and affordable rental housing across seven state-owned land plots. Applications and proposals are accepted until July 13 at 14:00 local time.
The Cyprus Scientific and Technical Chamber (ETEK), which had previously submitted relevant recommendations to the president and Interior Minister Constantinos Ioannou, has already welcomed this important development.
How many apartments will be built and where they will be located
According to the competition documentation, the state plans to construct a total of 460 residential units. These include 176 one-bedroom apartments, 264 two-bedroom apartments, and 20 three-bedroom apartments. The total project budget amounts to €59.9 million excluding VAT. With the inclusion of the 5% value-added tax, the amount reaches €62.9 million.
It is specifically emphasized that adherence to the budget, both for the project as a whole and for each individual site, is a critical requirement. This is because the project focuses on affordable housing, which will be rented at low rates in accordance with the criteria of the Cyprus Land Development Organization (KOAG).
The stated amount includes all necessary works: site development with roads, sidewalks, and open green areas, construction of ready-to-move-in buildings, installation of built-in furniture, full electrical and engineering systems including heating and air conditioning, as well as external works and design studies.
Where exactly the new neighborhoods will appear
The residential complexes will be built on state land in several municipalities: Latsia-Geri (Nicosia), Episkopi (Limassol), Aradippou (Larnaca), and Achelia (Paphos).
In the Nicosia area, specifically in Geri, 124 apartments will be built on two plots with a total area of 12,542 m². These include 56 one-bedroom, 56 two-bedroom, and 12 three-bedroom apartments. The maximum estimated cost here is €16.2 million excluding VAT. The plots are located in a residential zone where buildings up to two floors are permitted.
In the Limassol area, in Episkopi, the largest development is planned — 216 apartments across three plots: 80 one-bedroom, 128 two-bedroom, and 8 three-bedroom units. The total budget is estimated at €28.3 million. One plot is adjacent to a public educational institution, while the other two are located near the highway.
In the Larnaca area, in Aradippou, 52 apartments will be built on a 5,562 m² plot: 20 one-bedroom and 32 two-bedroom units. The budget for this project is €6.7 million. The plot is located in a residential zone and borders a road leading to the highway.
In the Paphos area, in Achelia, 68 apartments will be constructed on a plot of 8,041 m²: 20 one-bedroom and 48 two-bedroom units. The project cost is estimated at €8.7 million. The area is surrounded by plots designated for self-built housing for displaced persons.
Quality requirements and minimum apartment sizes
All buildings must comply with nearly zero-energy consumption standards in accordance with current legislation. The architectural competition aims to ensure the best proposal for the construction of high-quality affordable rental housing, while participants must not exceed the established budget.
The minimum size of a one-bedroom apartment will be 40 m², a two-bedroom apartment 62 m², and a three-bedroom apartment 85 m². Verandas must account for at least 15% of the usable area of each apartment.
The entire project will be implemented using the “design-build-maintain” method. The architectural concept resulting from the competition at the preliminary design stage will later be included in the tender documentation.
Awards for winners and the role of the EU
All proposals will be evaluated by a specially formed competition committee, which will assign awards and distinctions for each site separately. The prize amounts include the architect’s fee for the preliminary design, its refinement, and the preparation of specifications for inclusion in the main tender documentation.
It is important to note that this project is being implemented within the broader context of housing policy reform in Cyprus. In January 2026, a delegation from the Organisation for Economic Co-operation and Development visited Cyprus as part of a project to develop and implement affordable housing models. The visit was carried out in cooperation with the European Commission and funded through the EU Technical Support Instrument. The two-year project aims to improve access to affordable housing, especially for low- and middle-income citizens.