Limassol to get 138 affordable flats through €16 million state support

The Cyprus Land Development Organisation (KOAG) is moving forward with its first affordable rental housing project in Limassol, designed to provide homes at prices 25% to 30% lower than current market rates.

Construction began in June 2025 in the Ayios Nikolaos area, with the foundation stone set to be laid in January 2026. The first residential units are expected to be delivered in 2027. The project had previously stalled after the end of the Cyprus Investment Programme, which had been KOAG’s main source of funding. It was revived following a €16 million government grant, ensuring the initiative could proceed.

The development will include a total of 138 residential units distributed across four six-storey apartment buildings: 24 one-bedroom apartments, 72 two-bedroom apartments, 36 three-bedroom apartments, 6 four-bedroom apartments. Out of the 138 apartments, 94 will remain under KOAG ownership, while 44 will be allocated to the Limassol Municipality to support local housing needs. The total project cost is estimated at €22 million, with the government covering the majority through its financial support.

This Ayios Nikolaos project marks the first phase of KOAG’s affordable housing plan in Limassol. A second development will follow in the Ayios Ioannis area, bringing the total number of planned affordable units in the city to approximately 600.

KOAG President Elena Kousiou described the government’s intervention as “crucial” for making the project a reality, noting that despite delays and bureaucratic hurdles, the organisation remained committed to serving the public. “Behind every social project, there are people working quietly and with faith, who never give up when they know they are serving society’s good,” she said.