Konstantinos Karseras wanted to move to Limassol to start his studies in multimedia and graphic arts at the Cyprus University of Technology. But the COVID-19 pandemic lockdowns forced him to put a halt to his plan. By 2022, when the university reopened its doors, Konstantinos encountered an unexpected challenge — finding a place to stay in Limassol.

“For three months, I was commuting every day from Paphos to Limassol to attend classes and be able to continue my studies,” he says. “I had to do this because there weren’t many apartments available, or they were unaffordable for us students.”

After months of searching, Konstantinos finally managed to find accommodation. However, hundreds of students who enrol at the university each year face the same problem. That is why the Cyprus University of Technology has decided to build affordable student housing and upgrade its campus facilities in the cities of Paphos and Limassol. The project is expected to provide more than 700 new student residences and expand the university’s academic, research, and sports facilities.

“With this initiative, we will accommodate one-third of our undergraduate students, reaching the highest dormitory availability among universities in Cyprus,” says Panayiotis Zaphiris, the university rector, who is collaborating closely with the students on the project.

The European Investment Bank signed a €125 million loan in 2024 to help the university and the municipality of Paphos with their ambitious projects, and ensure that the planned student lodgings are sustainable and meet the highest standards.

“The students are very pleased,” says Karseras, now serving as the student representative at the university’s board to help others facing the same challenge. “Having the university provide both accommodation and education is one of the most appealing aspects of pursuing higher education today.”

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Konstantinos Karseras

Limassol’s coastal landscape makes it an attractive destination for international companies and tourists. But this appeal has also resulted in increased demand for housing and soaring rental prices. Students, often without a steady income, are among the first to feel the squeeze from these rising costs.

“Housing is the main issue that my fellow students face,” says Petros Christodoulou, the head of the Student Union at the Cyprus University of Technology. “A studio or one-bedroom in Limassol costs around €700 plus utilities. This discourages students from coming to our university.”

The situation became worse after COVID-19, as many students from across Cyprus returned to Limassol. This surge in demand caused prices to skyrocket. “Because of the pandemic, we left our apartments, and when we came back, they were no longer available, occupied by families and workers,” adds Karseras.

Faced with this situation, students and the university had to come up with their own initiatives, such as renting apartments from individuals, providing small monthly financial support to students in financial need or creating networks for co-sharing apartments. But it became clear that a more permanent solution was needed.

The future dormitories of the Cyprus University of Technology.

With the support of the European Investment Bank, the university is planning to construct new student dormitories in Limassol that will provide 503 new rooms. This will make education more accessible, particularly for vulnerable groups, and could help lower rent prices by reducing the demand for student housing.

“The university plans to build the Eratosthenis Centre of Excellence, add new sports facilities, refurbish buildings in central Limassol, reconstruct art and administrative buildings, and construct two new buildings for the Department of Multimedia and Graphic Arts and Faculty of Geotechnical Sciences and Environmental Management,” says Anthony Friedman, a senior sector engineer at the European Investment Bank who worked on the deal.

The new facilities will be modern and energy efficient. The university is working with the local community to build a photovoltaic park, which will partly power the university. 

“One of our primary university objectives is to offer to students high level education that goes hand in hand with sustainable living conditions,” says the university board’s president, Costas Galatariotis.

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In 2021, the Cyprus University of Technology decided to open a new faculty of Tourism, Management, Hospitality, and Entrepreneurship in Pafos, a smaller town than Limassol in the southwest of the island. With over 500 students expected to start their studies there, the local municipality and the university looked for ways to avoid similar housing challenges.

“High rental prices prevent students from pursuing higher education, even where tuition is free, and it’s a significant barrier that could exacerbate our city’s brain drain,” says Phedonas Phedonos, Paphos’ mayor. “So, we decided to build student dormitories to deal with the major housing crisis that is hitting many cities across Europe.”

The project was completed by the municipality in September 2024, within just 13 months, which is truly remarkable. Less than half kilometre away from the university, it offers 203 modern, sustainable, and fully equipped rooms, providing everything a student needs “to spread their wings,” adds Phedonos.

Interior of the student facilities in Paphos.

By improving its educational infrastructure, Paphos aims to spark a positive ripple effect on the local economy and community.

“This sends a signal that something significant is happening in Paphos, which will multiply and grow exponentially in the coming years,” says Mayor Fedonos. “We will build a hub of international universities, which would be impossible without adequate university housing.”

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Access to housing has grown increasingly problematic in the European Union due to demographic shifts, urbanisation, the COVID-19 pandemic, the conflict in Ukraine, and soaring energy and living costs. These issues have made it difficult for many families, especially those with low or middle incomes and young people, to afford a place to live.

This is also true for Cyprus, and the European Investment Bank’s €125 million loan—€108 million allocated to the university in Limassol and €17 million to the municipality of Paphos—aims to alleviate this. Part of the financing comes from the InvestEU programme, a European initiative that supports social infrastructure, sustainable investment, innovation and job creation in Europe. With the financial support of the InvestEU Advisory Hub, EIB Advisory Services are also assisting the university in maximising the energy efficiency of the newly developed infrastructure.

“Improving university infrastructure will help Cypriot universities attract and train talented people, helping drive economic growth, business innovation, and social progress in the country,” says Sofia Kalogirou, a loan officer at the European Investment Bank who works on projects in this region.

In 2024, the European Investment Fund invested more than €50 million to support the development of student housing in central and eastern Europe. Alongside this, the European Investment Bank financed other major student housing projects, underscoring the growing importance of the issue.

These projects include:

• the construction and renovation of administrative, academic, and research facilities, as well as new student accommodation at the University of Camerino in Italy
• the modernisation of Grigore T. Popa University of Medicine and Pharmacy in Iasi, Romania, alongside the construction of new student accommodation and research facilities
• the renovation, extension, and construction of educational facilities in the region of Catalonia
• the construction and renovation of middle schools in Rhône, France

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