Student accommodation projects within Nicosia’s walled city have been reduced to 250 rooms from an original target of 560, with budget constraints and planning obstacles forcing significant downsizing ahead of new university facilities opening.
The scaled-back programme will provide approximately 320 total rooms when combined with 70 municipal units expected by early 2026. Initial applications from 45 companies and individuals were ultimately reduced to 14 viable projects under Department of Town Planning oversight.
The accommodation shortage emerges as the University of Cyprus prepares to relocate its architecture school to the former Faneromeni School building, bringing approximately 200 students to the historic centre. The Athens University will operate from the former Tsaousis building with 100-120 students.
Budget reductions
Original funding allocation of approximately €33 million has been reduced, with €7.5 million designated for the first phase, €14.3 million for the second phase and €11.3 million for the third phase. The European Union’s Recovery and Resilience Mechanism finances the programme through Cyprus’s national recovery plan.
Municipal accommodation projects will cost €5.486.462 plus VAT, with €3.821.462 allocated for the 50-room Voulgaroktonou Street facility and €1.665.000 approved for the 20-room Aristeidou Street development.
The Archbishopric has completed the first residence with 13 rooms, whilst planned facilities under the Department of Town Planning range from six rooms in the smallest project to 40 rooms in the largest.
Planning obstacles reduce viable applications
Multiple factors contributed to application withdrawals, including planning restrictions, Local Plan provision conflicts, insufficient applicant financing and regulatory compliance issues. Safety specifications, comfort requirements and technical standards eliminated proposals that could not meet Planning Department approval criteria.
Applicants who initially expressed interest withdrew or suspended applications after encountering implementation complexities exceeding expectations. The programme theoretically remains open until summer 2026, though time constraints and funding limitations suggest limited additional development.
Beyond student accommodation, the historic centre will require additional facilities for university-related personnel, including professors and researchers.
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