Plans worth tens of millions of euros to revitalise Nicosia’s historic walled city have been thrown into doubt after the University of Cyprus abandoned plans to move its Architecture School to the Faneromeni building.
The collapse has triggered a domino effect of uncertainty across investment and grant schemes that were built around bringing roughly 200 students, lecturers and researchers into the old city, which has struggled since 1974.
The Ministry of Interior had announced grant schemes exceeding €30 million to create student residences, with funding from the state budget and the EU’s Recovery and Resilience Plan. Private investors had already begun pouring millions into student accommodation projects in anticipation of the school’s arrival.
The ministry had also announced support measures for businesses and beautification plans for existing buildings to serve students living in the city. Property transactions accelerated as investors bought buildings to convert for student-related activities, though this sector now faces uncertainty as well.
University of Cyprus Rector Tasos Christofides had intended to request a meeting with Archbishop Georgios to formally propose operating a different school in the old city if the Architecture School move falls through definitively, according to Phileleftheros.
The Archbishop, seeing that the Finance Ministry has no intention of spending money to build a new structure behind the Faneromeni school to accommodate the Architecture School alongside the existing building, has indicated he plans to operate a primary or secondary church school at Faneromeni instead.
Those involved in the revitalisation efforts argue that school pupils will contribute nothing to regenerating the city, whilst a university school would bring people to an area that is slowly dying.
The Archbishop opposes operating university offices at Faneromeni, as this would not serve the goal of revitalising the walled city, according to Phileleftheros.
Student residence schemes frozen temporarily
The Interior Ministry’s schemes, which faced resistance from the Finance Ministry over costs, were generous, as shown by the strong business interest in creating student residences.
Forty-five individuals and companies expressed interest in converting buildings into student residences, with around 30 ultimately submitting applications. Roughly half the proposed buildings are listed heritage properties.
The target initially stood at over 500 rooms, then dropped to 450, then 380, and finally 250 student rooms. Beyond these, Nicosia Municipality undertook to create another 70 rooms, with the first municipal residence already operating.
The minimum eligible investment to convert a building into student accommodation was set at €140,000. Maximum grants per beneficiary reach €2 million, except for those deemed by the State Aid Control Office to be receiving state aid, who face a €200,000 cap under EU de minimis regulations.
Hundreds of rooms were theoretically due to be ready in early 2026, but delays now appear inevitable.
An encouraging development is that a branch of Athens’ Kapodistrian University will operate in the city, whilst other private universities have expressed interest in opening schools.
The University of Cyprus also hosts dozens of students who come to Cyprus each year through various exchange programmes.
What the Interior Ministry plans envisaged for upgrading the area
The Interior Ministry scheme for student residences involves providing financial support to individuals or legal entities, owners or tenants of buildings (with written consent from owners) in the walled city.
According to the ministry, the main objectives are the social and economic upgrading of the area by attracting students and related investments, upgrading the built environment, and providing affordable housing options to students with controlled rent.
The planning also envisaged traffic facilitation measures for sustainable urban mobility, town planning and economic incentives, a grant scheme for home ownership, a grant scheme to support entrepreneurship, and highlighting and preserving cultural heritage through restoration and maintenance of historic buildings and monuments whilst maintaining the area’s authenticity and charm.
Other goals included strengthening the local economy by supporting existing businesses and attracting new ones to create employment opportunities, and social support from the state to retain the indigenous population and attract new residents by offering quality spaces for living, work, leisure and activity.
Financial support was also planned for land development, architectural heritage restoration, urban development and youth-focused initiatives. Private entities and small and medium-sized enterprises could benefit from the measures.
Potential beneficiaries are individuals and legal entities who own or lease buildings and will make investments in their buildings in the implementation areas for the scheme’s purposes and meet the requirements, subject to state aid rules where applicable.