The Cyprus Land Development Corporation (KOAG) has introduced new affordable apartments, each spanning 75 square meters, priced at €124,000.

This was unveiled on Tuesday in a joint media briefing by Interior Minister Constantinos Ioannou and KOAG Chairwoman Elena Kousiou-Hadjidemetriou, focusing on the organisation’s active housing projects.

Minister Ioannou announced that KOAG plans to build 220 homes this year. Development work on 135 plots in Nicosia, Larnaca, Limassol, and Paphos is set to commence in the last quarter.

He also mentioned that €12 million, a sum likely to rise, will be invested in KOAG’s special fund, aided by compensation incentives for land developers. An additional €9 million is to be generated through governmental urban planning incentives, with another €5 to €6 million expected from urban planning amnesty programs, which have already garnered about 1,200 applicants.

Chairwoman Kousiou-Hadjidemetriou elaborated on KOAG’s three-pronged strategy, which includes using 135 plots to establish 247 housing units, constructing a further 213 units backed by government funds, and collaborating with the private sector to create affordable housing options for sale and rent.

The Director-General of KOAG highlighted that since its inception in 1982, the organization has offered housing assistance to nearly 5,000 families. This includes help for around 1,000 families through the low-income housing initiative and support for 2,500 families via the moderate-income scheme.

Minister Ioannou also discussed forthcoming changes to housing guidelines, noting a proposal under review that could permit a 15% reduction in the floor area for all apartment types. However, critics argue that this downsizing may not proportionally lower the selling prices.

The Minister further mentioned anticipated Cabinet decisions aimed at enhancing the housing setup. This includes eliminating the requirement for developments in tourist zones to comply with set percentages for various apartment types, aligning these regulations with existing ones in other residential areas.

These measures are part of the government’s comprehensive approach to improve housing affordability and availability, especially for middle- and lower-income households.