The Federation of Employers and Industrialists (OEB) informs you about the issuance of Order No. 5/2025 by the Minister of Interior, Mr. Konstantinos Ioannou, which was issued on December 10, 2025 on the basis of Article 6 of the Urban and Spatial Planning Law and aims to guide the Urban Planning Authorities regarding the principles and criteria for the urban planning control of applications related to the construction of Housing Units of Collective Accommodation.
The State recognizes that this use has a significant socio-economic impact, as it contributes to meeting the housing needs of a wide range of the population in both the medium and long term, while at the same time the regulation aims at the rational and functional integration of Collective Accommodation Units in the host area, minimizing the impact on neighboring uses and the wider environment.
Collective Housing Units are defined as single housing units with a common entrance and exit, which are used exclusively for the accommodation of up to twelve tenants.
As far as the location is concerned, the Order provides for the possibility of developing Collective Accommodation Units in properties that fall within defined Commercial Zones, in Axes of Activities or in axes towards the center of settlements, as well as in areas where commercial development is allowed, with the clarification that for the purposes of ensuring commercial continuity, their location on the ground floor of buildings within a Commercial Zone is not allowed, unless the conditions of the relevant policy for residential development on commercial axes are met.
In addition, development is allowed in properties that fall within designated Tourist Zones, with a particularly important provision that in cases where the Collective Accommodation Units are located within the shell or within the tourist accommodation field, it is not necessary to provide a kitchen or even a living area, provided that prior consultation with the Deputy Ministry of Tourism is carried out. Furthermore, development is allowed in properties that fall within a defined Residential Zone and are located in the immediate perimeter of a Tourist, Industrial or Craft Zone or Area, as well as in properties located within the perimeter of these Zones and adjacent to a Road of Primary Importance, a provision that substantially facilitates the coverage of the housing needs of staff in areas with intense industrial or craft activity.
Particular emphasis is placed on the requirements for parking spaces, with provisions that enhance sustainable mobility, as in normal cases one vehicle parking space is required for every six bedrooms or a fraction of them, while in Collective Accommodation Units served by a bus or minibus which, based on a relevant agreement, is connected to the workplace, the requirement is reduced to one car park for every twelve rooms. At the same time, in normal cases, one parking space for a moped or bicycle is required for each bed, while in cases of service by means of transport to the workplace, this requirement is reduced to one parking space for a moped or bicycle for every two beds.
In relation to urban planning restrictions, the building factor, the coverage rate, the number of floors and the height of the development may not exceed the maximum permitted sizes determined by the current Urban Planning Zone, while it is clarified that in cases of location within a Residential Zone, the relevant provision of the Development Plans will not apply, which provides for a reduction to 70% of the maximum building factor of the prevailing use. In addition, clear restrictions are placed on the maximum number of beds within a Residential Zone, as the development of a Collective Accommodation Unit is not allowed when the number of beds exceeds thirty per plot of normal area, nor when the total number of beds of all licensed Collective Accommodation Units within a radius of five hundred meters exceeds five hundred beds.
Finally, it is made clear that the use of the Collective Accommodation Units is not allowed as a self-catering short-term accommodation or as a tourist accommodation in general, while the competent Authority, i.e. the Director of Development Licensing of each Provincial Self-Government Organization, will carry out periodic inspections in order to determine compliance and take appropriate measures to ensure amenities in the host areas and to prevent any arbitrary intensification of use.
For any additional clarification or information, you can contact Mr. Panagiotis Papouis, Officer of the Interior, at 22 867 865 or by e-mail at ppapouis@moi.gov.cy.
Note: The Order No. 5/2025 in original form.
