Affordable state-owned building plots are set to return to Cyprus for the first time in almost 15 years, marking a significant move to improve housing affordability and support aspiring homeowners.
The scheme, which was abolished in 2012, is being reintroduced through both the Ministry of the Interior and the Cyprus Land Development Organisation (KOAG). In a notable first, KOAG will offer residential land for sale rather than focusing exclusively on completed housing developments.
135 affordable plots planned across four districts
Speaking recently, KOAG Chairman Thiseas Ioannou revealed that the organisation is nearing the final stages of preparations to release affordable residential plots.
According to Mr Ioannou, KOAG is progressing with the subdivision of 135 plots located across the districts of Nicosia, Limassol, Larnaca and Paphos.
The remaining hurdle involves obtaining planning and building permits from the relevant District Local Government Organisations.
The proposed developments include:
- 36 plots in Ypsonas, Limassol (awaiting building permits)
- 44 plots in Kokkinotrimithia, Nicosia (awaiting building permits)
- 31 plots in Timi, Paphos (pending planning approval)
- 26 plots in Dromolaxia, Larnaca (pending planning approval)
Industry sources indicate that the plots will measure approximately 520 square metres each. Prices are expected to be set at around one-third of prevailing market values in the respective areas.
Eligibility is likely to follow the same criteria currently applied by KOAG under its affordable housing programmes. (Current criteria are Cypriot citizens as well as other EU nationals residing in Cyprus for the past five years will be eligible to apply provided they did not own a house in the five years before the application.)
Interior ministry preparing separate land initiative
Alongside KOAG’s plans, the Ministry of the Interior is also preparing a separate scheme involving the allocation of state-owned land through local authorities.
The proposal is currently undergoing legal review after draft legislation was submitted for technical examination.
Under the proposed framework, local authorities would identify areas where there is demand for affordable housing or opportunities to utilise state land. The Ministry would oversee the subdivision of plots before transferring responsibility for allocation and sale to local councils.
Eligibility criteria are expected to reflect the income and social requirements already used within Cyprus’ affordable housing programmes.
The sale price of the plots is expected to be linked to official valuations, with indications suggesting buyers could acquire land for around 25% of the value assessed by the Department of Lands and Surveys.
First affordable plots could be released in 2026
The first plots could potentially be allocated to eligible applicants during 2026, particularly under the KOAG programme, provided the necessary permits are issued without delay.
The Ministry of the Interior’s initiative is expected to take longer to reach implementation, as the relevant legislation remains under legal and technical review.
Nevertheless, the return of affordable state land represents one of the most significant housing policy developments in Cyprus in recent years and could provide a valuable route to homeownership for households struggling with rising property prices and limited housing supply.
