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Cyprus Implements Ambitious Desalination Projects to Secure Water Supply Amid Historic Drought

Facing an unprecedented drought, Cyprus is set to launch a vast portfolio of desalination projects as part of a government strategy to ensure water security. Proposed by Agriculture Minister Maria Panagiotou and approved by the Cabinet of Ministers, the initiative marks the most significant state investment in water infrastructure in over a decade.

Record Investment Reflects National Priority

The comprehensive plan allocates a record €140 million for the purchase of desalinated water by 2026, underlining the government’s commitment to safeguarding drinking water reserves while repurposing dam resources for irrigation. This decisive allocation is designed to counteract the severe water deficits predicted in key districts.

Permanent Installations to Bolster Regional Capacity

Two new permanent desalination facilities are slated for development. The first, scheduled for the eastern region of Limassol, will boast a capacity of 60,000 to 80,000 cubic meters per day, catering to the rapidly growing urban demands that have historically relied on natural sources such as the Kouros dam and groundwater extractions.

The second permanent unit is planned for Dekelia. This replacement project, set to supersede the ageing installation whose contract expires in 2027, will provide 80,000 to 100,000 cubic meters daily. Its strategic location will support water supply needs in both the Ammochostos region and parts of Larnaca, ensuring sustainable access as regional demand escalates.

Mobile Solutions for Immediate Impact

Complementing the large-scale permanent investments, authorities have prioritized the expedited deployment of mobile desalination units. Four projects, already fast-tracked and operational within just three months, will contribute an additional 47,000 cubic meters of water daily by January 2026. In parallel, the Department of Water Development (TAW) is orchestrating the installation of three further mobile units, aiming for operational status before the summer of 2026. Each unit will supply at least 10,000 cubic meters daily for five years.

Strategic Locations for Mobile Units

Deployment plans include:

  • Episkopi (Municipality of Kouros): Situated near British Bases and adjacent to the existing Limassol facility. The tender was announced on 30 September, with contract initiation expected by the end of November and a project delivery timeline of six months, potentially accelerated to four months with performance bonuses.
  • Hellenic Electricity Authority (HEA) at Vassiliko: This unit will operate in tandem with the permanent desalination installation, delivering an additional 10,000 cubic meters daily. The competitive tender is expected to launch by November for a summer 2026 commencement.
  • Ammochostos Free Area: Prioritizing the Agia Napa site, with a subsequent plan for Paralimni – Deryneia, to ensure robust supply to the Protaras tourist district.

TAW will later evaluate the possibility of permanently integrating these mobile units or expanding their capacity and operational duration based on the forthcoming Desalination Feasibility Study.

Enhanced Daily Output and Future Security

Collectively, the seven mobile units (three new and four existing) will add 77,000 cubic meters to the daily water output, surpassing even the combined production of the permanent units at Vassiliko and Paphos. This initiative is projected to boost the proportion of water supplied through desalination by over 32%, ultimately fulfilling 100% of the nation’s water needs. Currently, five permanent plants deliver 235,000 cubic meters each day, covering only 70% of demand.

Crisis Mode: Dwindling Dam Reserves

The Department of Water Development reports that dam levels have tragically fallen to just 10.8% of capacity, compared to 25.9% in the previous year. The Kouros dam, the largest in Cyprus, now registers a mere 9.8% full, a stark drop from 23.5% just last year. This urgent scenario necessitates the rapid enhancement of the nation’s water balance via advanced desalination projects.

Conclusion: A Strategic Turnaround for Cyprus

Minister Panagiotou emphasized that “Cyprus is facing the most severe water scarcity in decades,” and asserted that these projects guarantee uninterrupted access to water for both domestic consumption and irrigation. The government’s forward-looking strategy, emphasizing speed, technological innovation, and environmental stewardship, is set to redefine the nation’s water security framework. With water reserves at historic lows and unpredictable rainfall patterns looming, 2026 is poised to be a landmark year in the sustainable management of Cyprus’s water resources.

Cyprus Residential Market Surpasses €2.5 Billion In 2025 With Apartments Leading the Way

Market Overview

In 2025, Cyprus’ newly built residential property market achieved a remarkable milestone, exceeding €2.5 billion. Data from Landbank Analytics indicates robust activity countrywide, with newly filed contracts reaching 7,819, including off-plan developments. This solid performance underscores the market’s resilience and dynamism across all districts.

Transaction Breakdown

The apartment sector clearly dominated the market, constituting 81.6% of transactions with 6,382 deals valued at €1.77 billion. In contrast, house sales represented a smaller segment, encompassing 1,437 transactions and generating €737.9 million. The record-high transaction was noted in Limassol, where an apartment sold for approximately €15.2 million, while the priciest house fetched roughly €6.2 million.

Regional Analysis

Nicosia: The capital recorded steady domestic demand with 2,171 new residential transactions. Apartments accounted for 1,836 deals generating €349.6 million, compared to 335 house transactions worth €105.5 million, anchoring Nicosia as a core market with average values of €190,000 for apartments and €315,000 for houses.

Limassol: As the island’s principal investment center, Limassol led overall activity with 2,207 transactions. Apartments dominated with 1,936 sales generating €824.1 million, while 271 house transactions added €157.9 million. The district enjoyed premium pricing, with apartments averaging over €425,000 and houses around €583,000.

Larnaca: This district maintained robust activity with a total of 2,020 transactions. The apartment segment realized 1,770 transactions worth €353 million, and houses contributed 250 deals valued at €96.3 million. Average prices hovered near €200,000 for apartments and €385,000 for houses, positioning Larnaca within the mid-market bracket.

Paphos: With a more balanced mix, Paphos completed 1,078 transactions. Ranking second in overall value at €503.2 million, the district saw house sales generate €287.8 million and apartments €215.4 million. Consequently, Paphos achieved the highest average house price at approximately €710,000 and an apartment average of €320,000, emphasizing its premium housing profile.

Famagusta: Distinguished by lower transaction volumes, Famagusta was the sole district where house sales outnumbered apartment deals. Out of 343 transactions, 176 involved houses (yielding €90.4 million) and 167 were apartments (at €32.4 million). The segment’s average prices were about €194,000 for apartments and over €513,000 for houses, signaling its focus on holiday residences and coastal developments.

Sector Insights and Forward View

Commenting on the report, Landbank Group CEO Andreas Christophorides remarked that the analysis demonstrates an ecosystem where apartments are the cornerstone of the real estate market. He emphasized, “The apartment sector is not merely a trend; it is the engine powering the country’s real estate market.” Christophorides also highlighted the diverse regional dynamics: Limassol leads in apartment pricing, Paphos commands premium house prices, Nicosia remains pivotal to domestic demand, Larnaca sustains competitive activity, and Famagusta caters to holiday home buyers.

In a market characterized by these varied profiles, informed monitoring of regional and sector-specific dynamics is crucial for investors aiming to make targeted and strategic decisions.

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