2026 promises to be a period of increased demand for affordable residential property. The Cyprus Organization for Land Development (KOAG) has unveiled an ambitious strategy aimed at supporting low- and middle-income residents. The primary focus is on ensuring that residential property remains a high-quality, affordable, and environmentally friendly choice for society in the face of rising construction and rental costs.
Key challenges and development priorities
The high cost of land and building materials remains the main obstacle to the market. In response, KOAG is strengthening its role in implementing government programs, striving to create stability and security for citizens.
The priority areas include:
- Energy efficiency : creating objects with functional design and low resource consumption.
- Renovation: modernization of existing buildings in central areas of cities.
- Digitalization : acceleration of licensing procedures and transparency of processes through the implementation of modern IT
Geography of new projects in different areas
The 2026 development plan covers virtually all key areas of the island. The program includes both the construction of new buildings and the subdivision of land for development. Active work is planned in areas such as Kokkinotrimithia , Pano Polemidia , Agios Dometios , Kaimakli , Pallouriotissa , Lakatamia , Aglantzia , Thymi , Dromolaxia-Meneou and Ypsonas .
Particular attention is paid to large urban centers, where the burden on tenants’ budgets is most noticeable.
| District / Municipality | Project type | Object characteristics | Investments |
| Strovolos | Affordable rent | 54 apartments in a new modern complex | €12 million |
| Limassol | Residential real estate | 138 apartments (construction has already begun) | €16 million |
| Agios Ioannis | Planned development | Development of a municipal property site | In the design stage |
In Limassol, the implementation of these projects will significantly increase the supply of affordable housing. Rental prices for these residential properties are expected to be 30% below market rates, providing significant support for local residents.
Social significance and environmental friendliness
KOAG’s 2026 strategy isn’t focused solely on the number of units built. The primary goal is to create long-term prospects for families and young professionals. The proposed one-, two- , and three-bedroom residential properties are designed with modern living standards in mind, providing residents not only with a roof over their heads but also with a comfortable urban environment.
Accelerating the pace of program implementation in all regions of the republic should balance the market and make owning or renting real estate more accessible to a wider segment of the population.
