The Cyprus Land Development Corporation (CLDC) will proceed with an affordable housing project in Strovolos, backed by €12 million in government funding through the Interior Ministry.
Interior Minister Constantinos Ioannou is expected to submit a proposal to the Council of Ministers requesting the funding allocation for the new development in Strovolos Municipality, according to sources.
The funding arrangement follows discussions between the Interior Ministry and CLDC, where the ministry requested project proposals to increase affordable rental housing supply through government financing.
Interior Ministry backs 54-apartment development plan
The project involves constructing two buildings on a single plot in Strovolos: a five-storey building with 30 two-bedroom apartments and a four-storey building with 24 two-bedroom units.
The Interior Ministry will allocate €4 million to CLDC in 2025 and €8 million in 2026 to cover land acquisition and construction costs. Construction work is scheduled to begin in late 2025, with completion targeted within three years.
The Interior Ministry previously provided €16 million to CLDC for constructing 138 apartments in Limassol Municipality.
Procedures are advancing for another property in Limassol’s Agios Ioannis area, where the municipality will provide land for additional affordable housing construction. Upon completion of both Limassol projects, approximately 600 apartments will be constructed at a total cost exceeding €100 million.
Land Development Corporation receives government funding boost
The government has secured funding flows to CLDC, which faced financial difficulties following the suspension of the Cyprus Investment Programme after losing revenues from the now-defunct citizenship-by-investment scheme.
CLDC will now receive financing for new projects through Interior Ministry schemes. Compensatory payments from various housing development plans will be deposited with CLDC to enable project implementation.
The Limassol apartments are designed to offer rents 25-30% below prevailing market rates in the area.
Read more: