Limassol, Cyprus. Limassol’s plan to provide hundreds of affordable rental homes has entered a new period of uncertainty amid growing tensions between the municipality and the Cyprus Land Development Organisation (Koag), according to Politis.
Project status and targets
Both sides remain in favour of continuing cooperation, citing Limassol’s housing problem and the need for more affordable rental options, but financial, planning and design issues have complicated a project first discussed about a decade ago and originally aimed at about 600 apartments.
The scheme has progressed with a 36-apartment building in Ayios Nikolaos. Another four buildings are expected to begin within the next 12 months, which would bring the total to 138 units.
Questions over next phases
Attention has shifted to the next phases planned for Ayios Ioannis and Ayios Nikolaos, including phases B1 and B2 for 180 apartments and phase C for a further 280 units.
Land value dispute in Ayios Ioannis
A key issue concerns municipal plots in Ayios Ioannis on Goethe Street, where old social housing owned by the municipality is expected to be demolished and replaced under the original plan with 180 new units.
The value of the land has risen significantly, with the area now close to major developments in the city and near Aktaia Odos. The municipality is raising the issue of fair compensation, saying the land’s current value is now almost equivalent to the construction cost.
The changing land values could alter the balance between the municipality and Koag. In Ayios Nikolaos, the split is understood to be about 68 per cent for Koag and 32 per cent for the municipality, while in Ayios Ioannis the share could become more balanced, potentially close to 50-50.
Planning permit and pending municipal comments
Koag has prepared construction plans and applied for a planning permit for phase B1, which concerns 87 units. The application was forwarded by the district authority to Limassol municipality for comments but remains pending, as municipal consent is required for changes linked to green space and road planning.
Both sides say a final compensation agreement cannot be reached before construction bids are received, which will determine the project’s exact cost. However, delays mean the land value continues to rise.
Interior minister involvement
The issue has reached Interior Minister Constantinos Ioannou, who sent a letter to Limassol mayor Yiannis Armeftis at the end of April asking whether the municipality’s position had changed.
What do you think should happen next to keep Limassol’s affordable rental housing project on track?