An ambitious program to build student dormitories within the Venetian walls of Nicosia has encountered significant challenges. Instead of the originally planned 560 rooms, only about 250 student housing units will be available in the center of the Cypriot capital by 2026. An additional 70 municipal units are planned, which will increase the total to around 320 rooms. Initially, 45 companies and individuals applied to participate in the program. However, after the Department of Urban Planning conducted background checks, the number of viable projects was reduced to 14.
New university buildings in the center
The housing shortage is worsening ahead of the opening of new university facilities in the Old Town. The University of Cyprus is preparing to move its architecture department to the former Faneromeni School, which will accommodate about 200 students. Additionally, the University of Athens will occupy the former Tsausis school building, where an additional 100 to 120 students will study. Thus, the need for affordable housing in Nicosia's historic center will only grow, creating challenges for students and property owners alike.
Funding and budget constraints
The initial budget for the program was around €33 million, but due to funding cuts, the budget has been reallocated. €7.5 million has been allocated for the first phase, €14.3 million for the second, and €11.3 million for the third. Funding is provided through the EU's Recovery and Resilience Mechanism as part of Cyprus's national plan.
Municipal housing construction projects will cost €5.48 million plus VAT. This includes a 50-room facility on Voulgaroktonou Street, which will cost €3.82 million, and a 20-room project on Aristidou Street, which will cost €1.66 million. The Archdiocese has already completed a 13-room residence, the first project. The other projects, overseen by the Department of Urban Planning, range from small, six-room projects to larger, 40-room projects.
Bureaucracy and obstacles for investors
The reduction in the program is due not only to the budget, but also to a number of administrative and technical barriers. These include conflicts with the local urban development plan, insufficient funding among applicants, and challenges in adhering to building codes and safety requirements.
Many investors who applied in the early stages ultimately withdrew their projects when faced with conditions that were much more difficult than expected. The program is formally scheduled to run until summer 2026, but due to tight deadlines and limited funding, a large number of new projects are not expected.
What's next?
Even if all the planned projects are implemented, there will still be an insufficient number of places for the growing number of students in central Nicosia. Moreover, there is demand not only from students but also from teachers and researchers who need housing close to educational institutions.
Experts note that the shortage of student housing could stimulate the growth of short-term rentals and revitalize the real estate market within the old city. However, the problem is unlikely to be fully resolved without a comprehensive approach that considers the interests of universities, the state, and private investors.