Cyprus plans to deliver 244 affordable new homes by year’s end

The Cyprus Land Development Organization (KOAG) expects to deliver 244 new homes across the island by the end of 2026, the agency’s general director, Eleni Symeonidou, told lawmakers Monday during a parliamentary review of the organization’s budget.

KOAG, the government agency in charge of housing policy, oversees projects that subsidize affordable homes and rentals, making them accessible to residents who otherwise might struggle in the private market.

The CLDO’s 2026 budget forecasts revenues of €41.95 million and spending of €41.96 million. About €21 million is expected from the sale of homes, apartments, and plots, with an additional €8 million anticipated from urban planning incentives.

The largest portion of expenses, €33 million, is earmarked for capital projects, including new housing across several municipalities:

• 48 units in Kokkino Trimithia
• 24 units in Agios Nikolaos, Larnaca
• 54 units for affordable rent on Spyrou Kyprianou Avenue (former Troodos area)
• 41 units in Polemidia
• 25 units in Kaimakli
• 60 units in Aglantzia
• 15 in Agios Dometios
• 18 in Lakatamia
• 42 in Nicosia city
• 48 in Palouriotissa

Funds will also support land subdivision projects in Timi, Dromolaxia, Kokkino Trimithia, and Ypsonas.

Parliamentary spokesman Alekos Tryfonides of DIKO expressed full support for KOAG, describing it as the executive arm of the state’s housing policy. He noted the agency is moving forward along three main pillars:

1. Traditional home construction — 244 homes will be completed by the end of 2026, aimed at affordable ownership.
2. Affordable rental housing — Plans include 138 units in Limassol, in partnership with the municipality, at a cost of €16 million, and a 54-unit project in Strovolos worth €12 million. The president recently announced an additional 500 units for affordable rent, which will be built under a design-and-build scheme led by the private sector, in collaboration with the Planning Department and KOAG. These units will also be subsidized to keep rents affordable.
3. Housing schemes funded by urban incentives — Revenues from planning incentives are reinvested into building subsidized affordable rental homes.

"Through these three pillars, KOAG is expanding housing options across the island while focusing on affordability and urban development,” Tryfonides said.