28 million euros will be invested in the renovation of the historic center of Nicosia. According to the local municipality, the program is aimed at the comprehensive revival of the old city. The allocated funds will be spent on street reconstruction, facade restoration, modernization of public spaces, and projects related to development along the “green” line. In December last year, a grant agreement was signed that provided additional funding, and the active phase of works started at the beginning of 2026.
Investments in education as a tool for revitalizing the center
In addition, the Nicosia municipality is currently actively developing projects to restore educational infrastructure. One of the largest is the placement of the National and Kapodistrian University in central Nicosia. According to the municipality, this is a strategic investment in the long-term development of the area. Medical faculty students studying in the central part of the city have already created stable demand for housing and services there. Municipal dormitories have become an example of successful investment in residential infrastructure; at the same time, construction is underway on a second municipal complex, Archbishopric facilities, and about 250 private student residences that are expected to be commissioned in the near future.
Growth of investment attractiveness of real estate
Active investments in the renovation of central Nicosia are increasing investor interest in real estate in historic districts. The municipality predicts that by 2027 demand for housing, especially student accommodation, will exceed supply. Already now all licensed educational institutions have opened enrollment for the new academic year, stimulating the development of the rental market and the renovation of old buildings into modern residential and commercial formats. The city authorities have appealed to the government to extend financial incentives for student housing projects, which could further attract private capital.
Faneromeni and future investment decisions
A separate area remains the modernization of the Faneromeni School, where the placement of a faculty of the University of Cyprus is being discussed. The municipality, the Archbishopric, the educational institution, and the Ministry of Finance are conducting negotiations aimed at reaching an agreement beneficial to all parties. Recent support for the idea from the archbishop has strengthened the project’s investment momentum. The updated concept is the placement of approximately 200 students.
Infrastructure and safety as part of investments
Investments in central Nicosia are not limited to construction and education. Significant funds are being directed toward infrastructure modernization, including the renovation of Konstantinou Paleologou Street, reconstruction of the multi-level parking facility on Ariadni Street, and improvement of areas around key urban sites. At the same time, measures to ensure safety and sanitary conditions have been strengthened. Joint actions by the municipality and state services have made it possible to eliminate illegal and unsafe forms of residence, which directly affects the quality of the urban environment and the investment attractiveness of the area.
The historic center of Nicosia, despite the ongoing division since the 1960s, is considered by the authorities to be a priority investment zone. The municipality is promoting initiatives to improve living conditions near the buffer zone and supports bicommunal projects with the participation of the EU and the UN. Extending the pedestrian route along the Pedieos River through the buffer zone is seen as an important symbolic and practical step toward revitalizing the center. According to the mayor, in an era of searching for authenticity, it is precisely the old city of Nicosia that can become a point of attraction for residents, students, tourists, and investors.