HomeNews MenuLatest News & UpdatesHigh rise buildings collapse

High rise buildings collapse

Demand for new high rise buildings in Cyprus has collapsed following the demise of the island’s disgraced citizenship by investment (aka golden passport) scheme.

While the golden passport scheme was in operation demand for permits to build ‘skyscrapers’ was high and a total of 87 permits for their construction were authorised.

Limassol was at the forefront of the demand. In total, 55 building permits were approved by the authorities for high rise buildings that started to sprout like mushrooms along the city’s coast transforming its skyline.

At the peak of demand in 2018, property developers obtained permits for eight high rise buildings in Limassol exceeding 26 floors, four for buildings between 21 and 25 floors, nine for buildings between 16 and 20 floors and thirteen permits for buildings between 11 and 15 floors.

By the end of 2019, the authorities had granted permits for the construction of 71 towers across the island. But as concerns about money laundering grew and the golden passport scheme was cancelled – and the pandemic hit a mere 16 permits for high rise buildings were granted in 2020.

Given that the golden passport scheme has been cancelled, it’s likely that some of the towers will not be built, while others will be reduced in size due to lack of demand.

During the first four months of 2021 just two permits have been issued for 11 to 15 floor buildings, one in Limassol and one in Larnaca.

RELATED ARTICLES

Essential Due Diligence

While buying property in Cyprus holds many opportunities, it also comes with risks. Carrying out due diligence before signing a sale agreement is essential to safeguard your investment, avoid legal complications, and ensure peace of mind.

Top Stories

Property Transfer Fees

Transfer fees are charged by the Department of Lands and Surveys (DLS) when the full legal ownership of a property is transferred to the purchaser. (In some cases this process can take many years, causing angst & frustration for buyers.)

EUR - Euro Member Countries
GBP
1.1676
RUB
0.0103
CNY
0.1292
CHF
1.0580

Capital Gains Tax

Capital Gains Tax (CGT) is generally 20% on the taxable gain from selling immovable property - and it can also apply to certain disposals of shares in companies holding real estate on the island, subject to applicable exemptions and deductions.

Elsewhere in Cyprus Property News