Twenty-eight private schools in Cyprus have applied to expand or develop their campuses, using incentives provided by a new urban planning scheme. 

Ten applications have already been approved, three rejected and 15 remain pending, according to local media. 

The scheme, approved by the cabinet in March and introduced by the Interior Minister Konstantinos Ioannou, offers planning incentives that allow schools to bypass bureaucratic delays. Nine of the 28 schools benefit directly from these incentives, and three have already received approvals.

Two of the schools used the incentives to reduce the minimum required area for open spaces and sports facilities, avoiding the need for special exemptions. 

The third school exceeded the allowed building coefficient and paid 20 per cent of the excess, equivalent to 669 square metres. 

This payment is calculated at the time of issuing the building permit and deposited into a special fund managed by the Cyprus land development corporation (Koag).

Eleni Symeonidou, Koag’s director-general, explained the purpose of the fund to the Cyprus Mail: 

“The intention is to use all revenue from any planning incentive to create affordable housing units for rent,” she said.

“Traditionally, we operate with budgetary autonomy, using sales revenue for new projects. When we receive funds from planning incentives, our goal is to use them for affordable housing.”

Koag currently has two ongoing affordable housing projects. One is in Limassol, in the Ayios Nicolaos area, with a state grant of €12 million, while the second is planned for Strovolos. 

Symeonidou said the income from planning incentives will allow Koag to develop further projects across Cyprus. 

“We submit our budget for approval to the House of Representatives, showing all income and expenses clearly. We are also subject to audits to ensure proper management,” she added, emphasising the transparency of the process.

Limassol leads in planning applications for private primary and secondary schools, followed by Paphos, Nicosia, and Larnaca.

No applications were submitted from Famagusta. The scheme was designed to support existing private schools and encourage new educational units to meet changing population needs following recent geopolitical developments.

It allows an increase in the maximum allowable building coefficient, provides the option to reduce standards for open spaces and sports facilities with the education ministry’s consent, and permits the purchase of a limited number of parking spaces when necessary. 

Contributions from any excess building coefficient are directed to Koag’s special fund for affordable housing. Fast-track procedures have been established, requiring all relevant departments to complete full applications within four months from submission.

The special scheme will remain in effect for one year from approval, until March 12, 2026, and applies exclusively to developments in the education sector. 

The government aims for the initiative to support the growth of private schools while simultaneously contributing to the creation of affordable housing, linking urban planning incentives directly to wider social policy goals.