The Cyprus Land Development Organisation (KOAG) is proceeding with its first affordable rental housing project in Limassol, aiming to offer housing at significantly lower rates than current market prices.
Construction work for the project began in June 2025 in the Ayios Nikolaos area, and the foundation stone is expected to be laid in January 2026. The first residential units are scheduled for delivery in 2027.
The project was unblocked after the government agreed to provide €16 million in funding. The organisation’s initial financing, which relied on the now-defunct Cyprus Investment Programme (CIP), had been eliminated, leaving the plans at risk of abandonment despite Limassol facing a severe housing crisis.
Project details
The Ayios Nikolaos development is the first phase of KOAG’s plan to offer affordable rent in the city. The total construction cost is estimated at €22 million, with €16 million covered by the government grant.
The project will consist of 138 residential units across four six-storey apartment blocks:
- 24 one-bedroom flats
- 72 two-bedroom flats
- 36 three-bedroom flats
- 6 four-bedroom flats
Of the 138 flats, 94 units will remain under KOAG ownership, while the remaining 44 units will be allocated to the Limassol Municipality. The goal is to offer these flats at rents 25% to 30% lower than current market prices.
The first phase will be followed by a second development in Ayios Ioannis, with the overall target being the construction of approximately 600 flats across both areas.
KOAG President Elena Kousiou noted that the government’s intervention was “crucial” for the implementation of the project.
Speaking to Phileleftheros, Kousiou highlighted the difficulties faced, including bureaucratic obstacles, after the loss of the CIP funding. She characterised the project as “a vision” for the organisation.
“Behind every social project, there are people working quietly, with dedication and faith, who never give up when they know and feel they are serving the good of society,” Kousiou said.
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