New Affordable Housing Project Launches in Limassol

A major affordable housing project is set to begin in Limassol, as authorities move forward with plans to ease the ongoing housing crisis. An agreement has been signed to kick off the construction of hundreds of new social housing units for local residents.

After nearly two years of negotiations and five years of planning, the Limassol Municipality and the Cyprus Land Development Corporation (KOAG) have finalized a deal to build several hundred apartments aimed at meeting the growing housing needs of the city.

According to the agreement, the municipality will provide four land plots, while KOAG will take charge of the construction process. The long-term goal is to deliver a total of 600 housing units across Limassol. Under the terms of the agreement, KOAG will receive 68.25% of the property share, with the municipality holding the remaining 31.75%. The agreement has been officially approved by the Land Registry and the Commissioner for State Aid.

The first phase of the project will be launched in the Ayios Nikolaos neighborhood. It will include the construction of four residential buildings containing a total of 138 apartments in various sizes:

• 24 one-bedroom apartments
• 72 two-bedroom apartments
• 36 three-bedroom apartments
• 6 four-bedroom apartments

The apartments will be allocated between KOAG and the municipality in proportion to their respective shares, based on total floor area. The overall budget for the project is €26 million — €10 million of which will be provided by KOAG, with the remaining €16 million funded by the state.

Construction of the first block — a six-story building with 36 apartments — has already been assigned to a contractor. Work will begin as soon as the agreement is ratified, with completion expected within 18 months. The second phase will involve the construction of the remaining three buildings, which are projected to be finished within 30 months.

All apartments will be available for rent at prices at least 30% lower than current market rates.