The Interior Ministry says developers using planning incentives in Cyprus have paid €2.21 million to date, far below the €20 million earlier reported as potential income.
According to Cyprus Property News, citing the Interior Ministry, Cyprus has so far collected €2.21 million from developers using planning incentives that support affordable housing. The €20 million reported earlier is potential income tied to applications at various stages of assessment and has not yet been received by the Cyprus Land Development Corporation (KOAG). Expected payments depend on how the developments progress. Under the scheme, developments receive extra building density in return for providing affordable homes or making a financial contribution. So far 23 planning permits have been issued, allowing a combined 21,024.95 square metres of additional building area. Eight developments will provide homes for sale at a set price of €1,650 per square metre, eleven will make a financial contribution only, and three will do both. One development will offer rental homes at 70% of the local market rent. Not every project will therefore directly add homes for sale or rent. A financial contribution must be paid before a building permit is issued, after the relevant District Local Government Organisation has assessed the application, so a planning permit alone does not mean the money has been collected. Three developments using the contribution option have obtained both planning and building permits and have paid €2,209,134.15 in total. KOAG is still considering how to use the funds. The minister highlighted five permitted developments with some of the largest planned affordable areas: 682 sq m in Kato Polemidia, 491 sq m in Ypsonas, 527 sq m in Livadia, 404 sq m in the Panagia area of Nicosia and 400 sq m in Aradippou. KOAG is expected to offer these homes at €1,650 per square metre once they are complete. These are future plans, not finished or handed-over properties, and KOAG's own projects in Kaimakli, Aglantzia and Strovolos are covered by separate permits and are not part of the 23.