The implementation of Cyprus’s revised urban planning incentives for affordable housing production is generating significant interest from developers, with 32 planning permit applications filed since the new policy tools were introduced in June 2024. Data submitted to the House of Representatives by the Ministry of Interior provides a comprehensive overview of the activity, with Limassol emerging as the epicenter of this development push.
National Overview and Status Update
The statistics, submitted in response to a query from Larnaca MP Andreas Apostolou, detail the nationwide progress of the scheme designed to increase the supply of accessible housing units.
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Total Applications: 32
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Approved Applications: 14
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Pending Applications: 17
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Withdrawn/Rejected: 1 withdrawn, 1 rejected
The Ministry clarified that it cannot provide data on completed units, as the allocation of affordable homes to eligible beneficiaries is managed exclusively by the Cyprus Land Development Corporation (KOAG).
The Ministry noted that disclosing the names of the land development companies was not possible, citing data protection laws and the scope of parliamentary control.
Geographical Breakdown of Activity
Лимассол is driving the national activity, accounting for half of all applications filed, followed by a strong showing in Larnaca.
Limassol: The Development Epicenter (16 Applications)
Limassol received the largest number of applications, with six projects already approved and nine currently pending. The approved projects demonstrate a wide range of sizes and compensatory payments:
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Largest Approved Project: Zakaki saw the approval of 240 units (July 1, 2025), utilizing an additional 21.5% incentive and carrying the highest recorded compensatory payment to date: €1,980,000.
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Other Approvals: Projects in Ypsonas/Kourion (88 units, 6 affordable), Kato Polemidia (55 units), and Germasogeia (36 units) were also approved, with various incentives (20% to 25% addition) and financial contributions.
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Noteworthy Pending: An application in Agios Tychonas is pending with an associated compensatory payment of €797,801, and another in Limassol Municipality is pending with a potential payment of €1,332,135.
Larnaca: High Activity, Complex Status (9 Applications)
Larnaca shows significant activity, particularly in areas like Livadia and Aradippou, with four approvals and five pending files.
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Key Approvals: Projects in Livadia (33 units, approved October 24, 2025) and Aradippou (34 units, 5 affordable, approved June 16, 2025) demonstrate the use of special incentives (25% and 45% increases). The Livadia project involved a compensatory payment of €173,952.
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Large Pending Projects: Pending applications include a 116-unit development in Livadia (7 affordable homes) and a 47-unit project in Aradippou.
Nicosia and Paphos: Focus on Specific Housing Needs
Nicosia (5 Applications, 4 Approved)
Nicosia’s approved projects stand out for their high proportion of affordable units, particularly within the ‘Built-to-Rent’ framework:
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Built-to-Rent Example: A 60-unit project in Strovolos (approved Feb 27, 2025) includes 19 affordable rental units and eight market-rate rental units.
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KOAG Focus: A 25-unit project in Kaimakli (approved Feb 19, 2025) involves 25 fully affordable units under the KOAG program.
Paphos (2 Applications, Both Pending)
Paphos has two significant applications awaiting approval, both tied to large financial contributions:
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A 92-unit development in Paphos city is pending, with a potential compensatory payment of €404,978.
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A 127-unit development in Geroskipou is pending, utilizing layered incentives (45% and 25% increments) and a potential payment of €297,209.
The applications across all districts utilize incentives ranging from 20% to 45% additional building coefficient, often accompanied by financial compensatory payments or contributions toward integrated development and Renewable Energy Sources (RES).
Source: Stockwatch.com.cy