Large sections of Cyprus’ Larnaca and Limassol coastlines have been acquired by third-country nationals operating through indirect ownership structures, raising concerns over national security, market transparency and housing affordability, lawmakers have warned.
Speaking before the Parliamentary Interior Committee, AKEL general secretary Stefanos Stefanou said e that extensive plots of land have already been sold east of Larnaca and west of Limassol. Interior Committee chairman and AKEL MP Aristos Damianou told Phileleftheros that in Larnaca, coastal areas from the former refinery zone to Dhekelia have changed hands, while in Limassol sales have focused on the Lady’s Mile area.
Third-country investments
Third-country buyers are not limited to residential developments, MPs said, but are also acquiring hotels, hospitals and commercial properties, with investment activity extending into city centres.
Lawmakers also raised alarms over widespread linked to third-country buyers, with third-country nationals allegedly conducting property transactions while presenting themselves as project managers or business consultants.
DISY MP Nikos Georgiou warned that illegal estate agency activity by third-country nationals is rife. He said individuals frequently move in and out of district administrations claiming to be business consultants or project managers while handling property sales. Georgiou called for a registry of professional entities under anti-money laundering legislation to allow immediate oversight of lawyers, accountants and estate agents.
Stavros Papadouris, leader of the Greens, said many land development companies were effectively foreign-owned and conducted sales abroad, with some transactions remaining unregistered in Cyprus until properties were resold. Damianou added that some deals involved investment funds acquiring shares in real estate companies rather than the underlying assets.
The concerns were raised during debate on two legislative proposals aimed at restricting large-scale land acquisitions by third-country nationals and banning housing purchases by companies representing foreign interests, particularly near critical infrastructure.
Damianou said lax regulation in previous years, combined with the now-defunct golden passports scheme and extensive high-rise developments, had contributed to sharply rising property prices, undermining housing affordability for most Cypriot households.
