The Cyprus Land Development Corporation (CLDC), in collaboration with the Interior Ministry, is moving forward with a new affordable housing scheme in Strovolos. The €12 million project aims to ease rental pressures in Nicosia and expand access to reasonably priced accommodation.
A €12 million boost for affordable housing
Interior Minister Constantinos Ioannou is expected to table a proposal before the Council of Ministers, seeking formal approval for the funding. The initiative is part of a wider government effort to increase the supply of affordable rental homes across Cyprus, following consultations between the Ministry and CLDC.
Plans for 54 affordable apartments in Strovolos
The development will feature two residential apartment blocks built on a single site in Strovolos. One will be a five-storey building with 30 two-bedroom apartments, while the other will be a four-storey block housing 24 two-bedroom units.
Funding will be distributed in phases: €4 million in 2025 and €8 million in 2026, covering both land acquisition and construction costs. Work is set to begin at the end of 2025, with completion expected within three years.
Expanding affordable housing in Limassol
This project builds on the government’s earlier investment of €16 million in Limassol, which supported the construction of 138 apartments in the municipality.
Further plans are progressing in the Agios Ioannis area of Limassol, where the municipality is providing land for additional affordable housing. Once both projects are finalised, around 600 apartments will be available, representing an investment of more than €100 million.
Financial stability for the Land Development Corporation
The CLDC has faced financial challenges since the suspension of the Cyprus by Investment Programme losing revenues from the now-defunct ‘golden passport‘ scheme, which had been a major revenue stream. However, with new state-backed financing mechanisms, the organisation is now better positioned to deliver projects that directly benefit citizens.
The Limassol apartments, in particular, are expected to be rented at prices 25–30% below the local market average, offering significant relief for households struggling with high housing costs.
A step towards tackling housing pressures
The Strovolos development reflects the government’s broader commitment to tackling housing affordability and increasing supply in key urban centres. If successful, it could serve as a model for similar projects across the island.
