The Minister of Interior issued Order No. 5/2025 on December 10, 2025, establishing principles and criteria for constructing collective accommodation housing units in specified zones, with regulations on location, parking, and usage.
The Federation of Employers and Industrialists (OEB) reports that Order No. 5/2025 was issued by the Minister of Interior, Mr. Konstantinos Ioannou, on December 10, 2025. The order provides guidelines for urban planning authorities regarding the construction of Housing Units of Collective Accommodation.
The order recognizes the socio-economic importance of such units, which help meet housing needs and promote rational integration into the environment while minimizing impact on neighboring uses.
Collective Housing Units are defined as single housing units with a common entrance and exit, used exclusively for up to twelve tenants.
Location regulations include development in properties within Commercial Zones, axes of activity or towards settlement centers, and areas permitting commercial development. Development on ground floors within Commercial Zones is generally not allowed unless specific policies are met.
Development is permitted in Tourist Zones, with provisions that units within the shell or tourist accommodation field do not require kitchens or living areas, subject to prior consultation with the Deputy Ministry of Tourism. Development is also allowed in properties near Tourist, Industrial, or Craft Zones, or adjacent to primary roads, to facilitate housing for workers in industrial or craft areas.
Parking requirements specify one space per six bedrooms, or one per twelve rooms for units served by a bus or minibus connected to workplaces. Bicycle and moped parking is required at one per bed, reduced to one per two beds when transport services are provided.
Urban planning restrictions include limits on building factor, coverage rate, number of floors, and height, based on the zone. In Residential Zones, the building factor is reduced to 70%, and development is limited to 30 beds per plot or 500 beds within 500 meters radius.
The use of collective accommodation units as short-term or tourist accommodation is prohibited. The Director of Development Licensing will conduct periodic inspections to ensure compliance and prevent misuse.
For further information, contact Mr. Panagiotis Papouis at 22 867 865 or via email at ppapouis@moi.gov.cy.
