Government unveils new affordable housing projects to support young people and families

Cyprus has announced a major housing plan to create 500 new affordable homes in Nicosia, Limassol, Larnaca and Paphos. The units will be available for rent or sale and will mainly support young people, families and individuals who struggle with high housing costs. Built on state-owned land worth over €7 million, the projects are expected to cost around €70 million and form part of a wider housing policy in which the government has already invested more than €300 million.

The new homes will be developed by private contractors through a tender process, while rental properties will remain under state ownership and be managed by the Cyprus Land Development Organisation. The goal is to offer long-term, affordable housing in key areas such as Latsia–Geri in Nicosia, Curium–Episkopi and Amathounta in Limassol, Oroklini in Larnaca and Acheleia in Paphos.

In addition, the government has announced a new plan to create collective accommodation units for workers in the tourism and trade sectors, where finding housing is increasingly difficult. These units will provide affordable short- and medium-term living spaces for low- and middle-income workers, using designs that maximise space and reduce costs. The plan takes effect immediately and can be applied to new or existing developments, similar to the recently completed project in Larnaca’s Ayios Nicolaos area.