Cyprus is bringing back cheap state land for development

The Government of the Republic of Cyprus is preparing to relaunch a large-scale state programme to sell land plots to eligible groups of citizens at prices significantly below market value. The initiative, which was wound down in 2012, will resume in 2026. The project will be implemented through two independent channels: via the Cyprus Land Development Corporation (KOAG) and directly through the Ministry of the Interior with the involvement of local municipalities.

Programme objectives and selection criteria:
The main goal of the revived scheme is to give citizens with low and middle incomes the opportunity to buy land for building their own homes amid a sharp rise in property prices on the open market. Potential beneficiaries will be selected on the basis of strict social and property criteria (annual income level, family composition), fully identical to KOAG’s current regulations for affordable housing programmes.

First channel: sales through KOAG corporation
KOAG Chairman Tisias Ioannou confirmed that the agency is completing preparations for a pilot pool of land plots. For the first time in its practice, the corporation will sell not ready-built homes, but vacant plots. At present, 135 plots with an average area of 520 square metres are being subdivided in four regions:
— Ipsonas (Limassol) — 36 plots (awaiting building permits).
— Kokkinotrimithia (Nicosia) — 44 plots (awaiting building permits).
— Timi (Paphos) — 31 plots (awaiting planning permits).
— Dromolaxia (Larnaca) — 26 plots (awaiting planning permits).

The price of land from KOAG for approved applicants will be around 33% (one third) of the current market value of similar properties in the specified locations.

Second channel: municipal scheme of the Ministry of the Interior
The ministry’s parallel programme involves transferring state-owned land to the management of local authorities:
— Municipalities will independently form application pools based on local demand and housing shortages.
— The Ministry of the Interior will handle technical oversight and the plotting of land parcels.
— Local administrations will be responsible for final allocation and verification of candidates.

Pricing under the ministerial scheme will be even stricter: the cost of plots will be fixed at 25% (a quarter of the price) of the official cadastral valuation carried out by the Department of Lands and Surveys.

Implementation timeline:
The fastest start and distribution of the first plots is expected through KOAG, provided that the new district administrations promptly finalise the issuance of town-planning permits. The Ministry of the Interior’s programme will take longer, as the relevant bill is still at the interdepartmental coordination and legal review stage.