NEWS

Cyprus Revives Affordable State-Owned Building Plots After 15 Years

POSTED ON 30/06/2026 BY ADMIN-VIP
Cyprus Revives Affordable State-Owned Building Plots After 15 Years

Cyprus is set to reintroduce affordable state-owned building plots for the first time in nearly 15 years, marking a major step toward improving housing affordability and helping more families achieve homeownership.

The initiative, discontinued in 2012, is being relaunched through both the Ministry of the Interior and the Cyprus Land Development Organisation (KOAG). For the first time, KOAG will also offer residential land for sale, expanding beyond its traditional focus on completed housing developments.

135 Affordable Residential Plots Planned

According to KOAG Chairman Thiseas Ioannou, preparations are in the final stages for the release of 135 affordable residential plots across four districts in Cyprus.

The planned developments include:

  • 36 plots in Ypsonas, Limassol (awaiting building permits)
  • 44 plots in Kokkinotrimithia, Nicosia (awaiting building permits)
  • 31 plots in Timi, Paphos (pending planning approval)
  • 26 plots in Dromolaxia, Larnaca (pending planning approval)

Each plot is expected to measure approximately 520 square metres. Industry sources indicate that prices could be set at around one-third of current market value, making the programme one of the most affordable land purchase opportunities in recent years.

Eligibility is expected to follow the existing criteria used under KOAG’s affordable housing programmes.

Ministry of the Interior Launches Additional Land Scheme

In parallel, the Ministry of the Interior is preparing a separate initiative to allocate state-owned land through local authorities.

Under the proposed framework, local councils will identify areas with demand for affordable housing or suitable state land. The Ministry will oversee the subdivision process before transferring responsibility for allocation and sales to the respective local authorities.

The proposal is currently undergoing legal and technical review, with eligibility requirements expected to align with existing affordable housing programmes.

Officials also indicate that plot prices may be linked to official government valuations, allowing eligible buyers to purchase land for approximately 25% of the value assessed by the Department of Lands and Surveys.

First Plots Expected in 2026

If planning and building permits are approved on schedule, the first affordable plots under the KOAG programme could become available during 2026.

The Ministry of the Interior’s separate initiative is expected to take longer, as the necessary legislation is still under review.

The return of affordable state-owned building plots represents one of Cyprus’ most significant housing policy initiatives in recent years. As property prices continue to rise and housing supply remains constrained, the programme is expected to create new opportunities for eligible households to purchase land at substantially reduced prices and move closer to homeownership.