Some 600 new housing units will be built in Limassol over the next six years for rent or sale to the needy as part of the government's affordable housing policy.
This was announced by the Cyprus Land Development Corporation (KOAG) on Thursday 22 August.
The corporation's director general, Eleni Simeonidou, said that work on the first phase of the project would begin in October or November 2024, in cooperation with the Limassol municipality.
In the first phase, we will build 138 residential units that will be rented to the municipality,' Simeonidis said.
Once work starts, the first 37 apartments will be rented out within 17 months. After that, work will begin on three more blocks of flats, with a total of 38 units.
We are proposing to implement the same plan in two other neighbourhoods in order to build 600 rental units over the next six years in Limassol, where we believe the rental problem is particularly acute,' she added.
As for the cost of the lease, the KOAG head said that the project would be financed to some extent by the government, 'which will have certain requirements regarding the amount of rent'.
She also said that the terms of the financing are still being discussed, 'so the government can't give an exact amount right now.
It will definitely be affordable. We intend to make the rent at least 30 per cent below the market price and we plan to make it even lower in the future,' Simeonidis said.
In Nicosia, she said, apartments in the Kaimakli neighbourhood are currently on sale and by February next year, apartments in Larnaca will be on sale for around €153,000 for a one-bedroom apartment with solar panels and air conditioning and heating included in the price.
Houses are also planned for Polemidia, near Limassol, and Kokkinotrimithia, near Nicosia, as well as apartments in the Nicosia suburbs of Ayios Dometios, Aglanjia and Lakatamia. The location determines whether private houses or apartment blocks are built.
If I have a plot of land in Ayios Dometios with a high building ratio, I cannot 'waste' it by building houses. I have to build apartments. Recent property investments have been made in inner city areas. This means that we will build apartments. We are trying to use the land we have so that we can build the maximum number of housing units," Simeonidis stressed.
According to the head of KOAG, construction companies have shown interest in the project. Mainly because of the benefits they will receive.
The beneficiaries, in turn, have already submitted dozens of applications. At the same time, the beneficiaries of the scheme are determined on the basis of criteria that are periodically approved by the Cabinet and concern middle- and low-income workers.
People are interested and applying, but there are some problems with financing. Rising interest rates and monthly installments have become a problem for some beneficiaries. We are doing our best to keep the purchase price low. The main objective is to help people who can benefit from it,' says Simeonidis.