Paphos Municipality launches social project: student housing for €150 per month

The Municipality of Paphos has announced a large-scale program to create affordable housing for students facing a sharp increase in rental rates. According to Mayor Fedonas Fedonos, rent in the city has reached "sky-high" levels — many young people are either forced to live in unsuitable premises or commute daily to school and work from other areas.

Forced economic housing

With rent prices rapidly rising — up to €700–800 for standard apartments — some property owners illegally convert basements and shops into living rooms, cramming 10–12 people into them and charging €150 each. This generates up to €1,500 daily from spaces that would not normally rent for even €300.

In response, the municipality began converting buildings in the city center, many of which had been abandoned for decades, into dormitories. Authorities plan to rent out 22 rooms in the coming days, increasing the number to 40 by the end of the year.

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Social aspect of the project

The new rooms will be rented to students for €150 per month, including utilities: water, electricity, and internet. Housing will be provided with shared kitchens and bathrooms — the first social project aimed at helping young people and middle-class workers.

Call for state participation

Fedonos emphasized that despite market expectations, rent will continue to rise — demand is too high and supply is limited. He noted that only large-scale construction of student dormitories (around 500) and social housing in cooperation with the state can truly change the situation. Even middle-income workers (€1,000–1,500 per month) cannot afford housing for rent or purchase today.

Tax benefits and prospects

The municipality also noted that the project operates transparently — it contributes 19% VAT to the state budget. However, in the long term, ways must be found for ordinary citizens to afford rental housing in Paphos.