The housing crisis faced in Cyprus and across the EU has made the purchase or even the renting of homes at affordable prices extremely difficult for a large segment of the population.
What used to be attainable is no longer. With incomes stagnant for many, rising living costs make ever heavier demands on households and push housing further beyond reach.
Role of KOAG
The Cyprus Land Development Corporation (ΚΟΑG) has reactivated in 2025 to help meet these pressing needs by producing residential units priced for the majority’s income levels. This year KOAG started construction of homes in Nicosia, Limassol and Larnaca, with 145 units scheduled to be released to the market.
According to KOAG data provided to Politis, in May work commenced on 10 houses in Kokkinotrimithia with an 18‐month completion schedule, followed in December by 48 apartments in Pallouriotissa, 29 houses in Polemidia, 25 apartments in Kaimakli, 18 in Lakatamia and 15 in Agios Dometios. Timelines range from 18 to 24 months.
By end‐2026 the total number of affordable housing units will rise to 247, with an additional 102 units beyond the 145 already launched. In June 2026, 60 apartments will begin in Aglantzia; in September another 42 in Pallouriotissa. Also in June 2026 a subdivision of 135 plots is planned in Kokkinotrimithia (42), Ypsonas (36) and Dromolaxia (26).
Affordable rental projects
In parallel, 138 residential units for affordable rent are underway. In August 2025 construction began on 36 apartments in the parish of Agios Nikolaos, Limassol. In February 2027 work will start on another 102 units also in Agios Nikolaos parish.
KOAG’s chairwoman Elena Kousiou‐Hadjidimitriou told Politis that applications for the Affordable Housing Units Scheme exceed the units available. The organisation is pushing banks to offer more support to applicants by relaxing lending terms.
Application deadline is 30 November 2025. Since 2 October, interested persons can register in the Affordable Housing Beneficiary Registry, with the aim of purchasing units developed under the Special Housing Incentive by land-development firms. Purchase price is set at €1,650 per buildable square metre.
Eligibility criteria
Applicants must be Cypriot or EU citizens residing permanently in Cyprus for at least five years before application. Neither the applicant nor spouse/partner may have owned a suitable home for their family in the past five years. Households’ gross annual income must not exceed: €25,000 (single), €45,000 (couple without children or single parent), €50,000 (family of 3), €55,000 (family of 4), €65,000 (family of 5 or more).
Applicants must have resources for a 20% deposit and be able to secure a bank loan for the remaining 80%. Beneficiaries must commit to owner-occupy the unit for at least ten years, not to sell it during that time and cannot benefit from this or a similar scheme again.
KOAG is also working to reinstate the low-income support housing scheme that ended in 2013.