Ayia Napa resort plan unveiled for the Limnara area

Nigel Howarth
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Ayia Napa resort plan unveiled for the Limnara area

A major tourism development costing €50 million is being proposed along the coast of Ayia Napa by Aesara Investments Ltd.

The project is planned for the Limnara area, on the coastline between Ayia Napa’s residential centre and Cape Greco, south of Kryou Nerou Avenue. The existing Mare Ayia Napa tourism complex is located in the eastern part of the same plot.

The proposal combines a five-star hotel with an apartment block for permanent residents, which would operate as a condo-hotel, which combines a hotel with individually owned apartments.

What does the proposed development include?

The hotel would have 324 rooms, providing 648 beds. Plans show a basement parking level, a ground floor and four upper floors. The development would also include 33 two-bedroom villas, or bungalows, forming part of the hotel.

The residential apartment block would contain 20 apartments, with two basement parking levels, a ground floor and four upper floors.

Plans provide for 321 parking spaces across the basement and ground-floor areas, including 12 accessible spaces.

The project’s total building and site coverage areas are stated as 29,538.6 square metres and 10,519.2 square metres respectively.

Hotel facilities and coastal setback

The hotel’s basement is planned to accommodate facilities including a spa, indoor swimming pool, gym, cinema room, children’s activity room, shops, staff areas and parking. The ground floor would include the main restaurant, breakfast area and café, reception, bars, offices, shops and covered terraces.

The proposed indoor and outdoor pools include a children’s pool, a main pool with a waterfall, indoor and outdoor spa pools, and a pool for babies.

Only landscaped green areas are planned within the Coastal Protection Zone. Under the terms set by the Department of Environment, no buildings are proposed within 40 metres of the zone’s boundary, apart from some swimming pools.

Construction timeline

According to the information report submitted to the environmental authority, construction is expected to begin once the required permits have been secured. Work is forecast to take 24 months to complete.

The project remains subject to approval, with construction expected to take 24 months once the necessary permits are in place.

More homes are key to tackling Cyprus’ housing crisis

Mersina Isidorou
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More homes are key to tackling Cyprus’ housing crisis

The real success of efforts to tackle Cyprus’ housing problem is measured by the people, families and young adults who are ultimately able to find a home.

That was the point made recently by Yiannis Misirlis, President of the Cyprus Property Developers Association, during a television interview. His observation perhaps captures the heart of the housing debate better than anything else.

A housing policy does not succeed simply because more measures are announced or incentives introduced. It succeeds when more households can find suitable homes to buy or rent at a price they can afford.

To achieve that, increasing the housing supply in Cyprus is essential.

More homes mean more choice

Housing is a complex issue shaped by many factors. One of the most important is the imbalance between demand and the number of homes available.

Where demand is high but homes are scarce, people have fewer options and prices come under greater pressure. Increasing the housing supply is therefore a key part of improving access to homes.

Cyprus needs more homes on the market, including homes that meet the needs of modern households in terms of size, location and cost.

From planning permission to completed home

To increase the supply of homes, we need to look at the main obstacles a development faces: from planning permission and the start of construction to completion and delivery to the buyer or tenant.

Delays in the approval process are among the biggest obstacles. They raise costs, push back schedules and slow the arrival of new homes on the market. Procedures need to be faster, simpler and, above all, more predictable. That means clear timeframes, consistent application of the rules and better coordination between the authorities involved.

The Nicosia District Local Government Organisation has reported positive results in processing applications, as have other district organisations. The challenge now is to build on this progress and apply good practice more consistently. Applicants should have a clear and realistic idea of how long a decision will take.

For property developers, certainty is as important as speed. It helps them plan, limits additional costs and makes it easier to deliver projects on time.

But planning permission alone does not put a new home on the market. Once a project is approved, it must also be possible to build it without further major delays. A sufficient workforce is crucial.

A shortage of technical and skilled workers affects the pace of construction, increases costs and limits the sector’s ability to deliver more homes. Cyprus cannot substantially expand its housing stock without the people and skills needed to build it.

That is why the housing debate must link planning approvals to the construction sector’s capacity to deliver. The aim is not simply to issue more permits. Those permits must become projects, completed homes and, ultimately, more choice for the public.

Making better use of existing homes

New construction is only part of the answer. Cyprus can also increase supply by making better use of the homes it already has.

Vacant, ageing or underused properties could return to the market through well-designed incentives for renovation and energy upgrades. This could provide additional homes more quickly, particularly in areas where demand is high and availability is limited.

The government’s “Renovate – Rent” scheme is a positive step. It could be strengthened to bring more unused properties back into use and increase the number of homes available for long-term rent.

Cyprus should also create the right conditions for more homes built specifically for long-term rental, including through Build-to-Rent models. Expanding the rental market is just as important as increasing the number of homes for sale.

An effective housing strategy should draw on every available source of supply: new developments, the return of existing homes to the market and more long-term rental homes. The goal should be to give people more genuine options, whether they want to buy or need a stable, affordable rental home.

Turning policy into results

Tackling the housing problem effectively requires a broad mix of measures. These include support for vulnerable groups, incentives to build affordable homes, cooperation between the public and private sectors, and better use of existing homes.

The Ministry of Interior’s housing policy is moving in a positive direction, with measures intended to increase both supply and access to housing. The key is to give these policies sufficient reach, apply them consistently and deliver measurable results.

Every measure should contribute to a clear goal: increasing the number of homes genuinely available on the market and widening the choices open to the public.

That is the challenge for the years ahead. Cyprus must move from plans, permits and figures to homes that are completed and handed over—and, above all, to people who are able to secure housing.

That is where the success of any housing policy should be measured: in the number of additional, practical housing options it creates.

By Mersina Isidorou, General Manager of the Cyprus Property Developers Association
Translated from an article published by the CPDA

Coast under pressure as Cyprus MPs push for a 100-metre building ban

Pavlos Neofytou
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Coast under pressure as Cyprus MPs push for a 100-metre building ban

“It is unthinkable that people should feel the coastline is gradually closing off behind private developments, or that free access to the sea could become a privilege. Development is necessary, but it must have limits. One of those limits must be meaningful protection for the coastal zone.”

Cyprus’ beaches are facing mounting pressure from development and environmental damage. In places, the coastline is gradually being hemmed in by private projects.

The issue drew public attention in June 2025, when plans for a restaurant built into the sea at Agios Ermogenis beach in Limassol caused an outcry. The defence was that the building stood on the boundary of a previously approved restaurant site, whose foundations had gradually been reached by the waves as the coast eroded.

Cyprus remains outside the Barcelona Protocol

Six of the eight EU member states bordering the Mediterranean have joined the Barcelona Convention’s Protocol on Integrated Coastal Zone Management. The protocol has formed part of EU law since 2011. Greece has signed but not ratified it. Cyprus is the only one of the eight that has neither signed nor ratified the protocol.

Public statements have linked Cyprus’ position to a troubled history of coastal planning approvals. In an earlier public statement, Paphos mayor Phedonas Phedonos, who is currently suspended from office, said opposition stemmed from the possibility that permits for around 15 hotels in Ayia Napa and Protaras could be revoked. Referring to an earlier parliamentary debate, he said permits on state and forest land would pose a serious problem.

The Audit Office has identified a different central obstacle: the conflict between the protocol and Cyprus’ Beach Protection Law over the width of the area where building is prohibited.

That law dates back to 7 December 1934. Legal Service opinions and Audit Office reports describe it as outdated for current conditions.

MPs propose a 100-metre coastal protection zone

MPs from the ALMA party have submitted a bill to Parliament’s Interior Committee to amend the Beach Protection Law. It would establish a minimum coastal protection zone 100 metres inland from the highest winter waterline. As a general rule, no new buildings would be allowed within it.

The proposal aims to bring Cyprus closer to Article 8(2)(a) of the Barcelona Protocol.

“The proposal did not come out of theory,” ALMA MP Litsa Droushiotou told Politis. “It came from the way our beaches have been managed for years and the need to move from an old, fragmented system to a clear protection rule.”

Citing Audit Office reports, she said they had highlighted major variations in the width of coastal zones, numerous relaxations and problems tackling illegal interventions.

Drousiotou said the bill also reflects the need to protect the environment and preserve public access to beaches and the sea. It would create a single 100-metre zone measured from the highest winter waterline, set directly by law rather than left to a future administrative map or notice.

Old coastal boundaries now lie in the sea

Droushiotou pointed to outdated coastal protection lines as a clear sign of the problem. In some places, the lines now lie in the sea because they were not updated as the coastline eroded.

A simple rule, she said, would give the public a clear minimum level of protection instead of leaving each beach subject to relaxations, old boundary lines or different administrative decisions.

A law amended dozens of times

For its time, the 1934 law was progressive and helped protect Cyprus’ coastline, said Klitos Papastylianou, environmental policy officer at Terra Cypria. But it has been amended around 45 to 50 times in the past 60 years.

An expert could now argue, he said, that it had become a law for exploiting or developing the beach, rather than protecting it.

Papastylianou said the current law focuses largely on beach facilities and services for swimmers, such as sunbeds, umbrellas and beach-use plans. It gives little attention to coastal landscapes, protected areas, changing ecosystems, climate change, rising sea levels, erosion, severe weather or strong waves. The protocol, by contrast, addresses these issues in separate articles.

Why hasn’t Cyprus signed or ratified the protocol?

Droushiotou cited official records dating back to 2008. The Legal Service had warned that the protocol’s permitted exemptions did not cover private-interest projects, affecting the Cabinet’s powers under national law. The Audit Office later identified the conflict over the no-build zone as a key reason Cyprus had not ratified it.

In 2011, the Legal Service also said the EU’s approval of the protocol created legal obligations for Cyprus. It repeated that position in 2013. The Environment Department prepared a ratification bill, which went to the Attorney General for legal review in 2014, but the process was never completed.

In a 2023 parliamentary response, the government called ratification a “primary and particularly important” need in light of development proposals within the coastal zone. It also acknowledged that the 100-metre rule required an amendment to Chapter 59, the Beach Protection Law.

Droushiotou said that although Cyprus had not signed or ratified the protocol in its own right, that did not mean the obligations arising from it could be ignored. She accused successive governments of failing to make the required changes while serving private interests.

Environmental groups call for stronger protection in sensitive areas

Environmental groups have welcomed the bill, Papastylianou said, but want the government to consider a more comprehensive legal framework for coastal protection.

The protocol sets 100 metres as a minimum. In specially protected areas, the zone can be wider—up to 500 metres, he said. He cited the Lara-Toxeftra Marine Protected Area, where the current beach protection zone is set at 100 metres.

He also pointed to the sea caves of Peyia, where coastal construction has taken place over the past decade, including within the existing 91–92-metre zone. As a result, entire plots have been left outside the protected area.

The proposed 100-metre rule would set a clearer baseline. The debate now facing Parliament is whether that minimum is enough to protect Cyprus’ most sensitive coastal areas.

By Pavlos Neofytou
Translated and adapted from an article published by Politis

Construction law proposal seeks faster dispute resolution

Nigel Howarth
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Construction law proposal seeks faster dispute resolution

Two MPs, Michalis Paraskeva and Odysseas Michaelides, have tabled a bill to speed up the resolution of disputes in construction contracts. It would allow decisions to be enforced through the courts while remaining temporarily binding on the parties.

The proposal covers disputes over payments, delays, extensions of time, additional work and technical issues. Its aim is to prevent disagreements from dragging on, adding costs and holding up projects.

The proposed framework would apply to private and public construction contracts where the parties have agreed in writing to use the procedure. It would establish rules for appointing an independent adjudicator, issuing a decision and seeking court recognition and enforcement.

What is construction adjudication?

Under the proposed process, the parties refer a specific dispute to an independent and impartial adjudicator, who issues a written decision. That decision would bind the parties temporarily, even if one of them disagrees with the outcome.

Unlike arbitration, adjudication is not necessarily intended to settle a dispute for good. It is designed to provide a prompt answer to issues arising while construction work is under way, helping limit disruption to the project.

The parties would be free to decide whether to use adjudication. Their written agreement could form part of the original contract or be made later. It could cover all disputes, certain types of dispute or a disagreement that has already arisen.

If the agreed conditions are met, either party could refer a dispute to the adjudication body without seeking fresh consent from the other side.

Decisions would be binding while a dispute continues

The bill would require parties to comply with an adjudicator’s decision without delay. A challenge, court case or arbitration would not automatically suspend that obligation.

Decisions could cover money owed as well as other contractual requirements. They might address whether work should be accepted, require work to be corrected, repeated or removed, or deal temporarily with extensions of time, variations, valuations and certificates.

The decisions would apply only to the parties to the contract. They could not replace any licence, approval or certificate required by law.

Courts would not reconsider the merits

If a party failed to comply, the other could apply to the relevant District Court or Commercial Court for recognition or enforcement. The proposed process would be expedited, and the court would not rehear the underlying dispute or reassess the adjudicator’s interpretation of the contract or technical evidence.

The bill sets limited grounds on which a court could refuse recognition. These include the absence of a valid written agreement, a serious breach of a party’s right to be heard, concerns about the adjudicator’s independence or impartiality, fraud, corruption or forgery, and a clear conflict with public policy.

Disagreement with the decision, a challenge to the amount awarded or another ongoing proceeding would not, by themselves, be grounds for refusal.

A court could suspend enforcement in exceptional circumstances, such as a serious risk of harm that could not be adequately remedied later. For monetary decisions, that could include a substantial risk that money could not be repaid. For non-monetary decisions, it might involve irreversible changes to the project or serious health and safety concerns.

The court could also impose measures such as a bank guarantee, payment into a controlled account or compliance in stages instead of suspending enforcement altogether.

Public contracts and the right to a final ruling

The proposed law would also cover public construction contracts where a valid adjudication agreement is in place. Public authorities would not have to include such an agreement. But where they did, their status as public bodies would not automatically give them a right to suspend enforcement or different treatment in court.

The bill would preserve the parties’ right to seek a final resolution through court, arbitration or another agreed process. That final decision could change or overturn the adjudication decision. If a party had paid money that was later found not to be due, the proposal would allow for repayment or another remedy.

The new framework would not automatically apply to existing contracts. The parties could agree in writing to bring future or existing disputes under it.

If Parliament approves the bill, the law would take effect six months after publication in the Official Gazette. The Supreme Court could issue procedural rules for applications for recognition, enforcement and suspension. Until then, existing civil procedure rules would apply with any necessary adjustments.

The bill aims to improve legal certainty and provide a faster, more predictable route for resolving construction disputes in Cyprus. It has been tabled in Parliament and is not yet law.

The draft law

An English translation of the draft law and its explanatory memorandum may be viewed by clicking here.

The draft law and its explanatory memorandum in Greek may be viewed by clicking here

Off-plan sales surge 49% as Limassol leads

Nigel Howarth
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Off-plan sales surge 49% as Limassol leads

Cyprus recorded 1,956 off-plan sales of apartments and houses (i.e. under construction or at the planning stage) in the third quarter of 2026. Their combined value reached €606.4 million, according to Landbank Analytics.

Compared with the second quarter, recorded sales rose by 48.5%, while their total value increased by 51.6%. The figures show stronger recorded activity and a shift in the balance between districts and price bands.

Limassol leads by value as Paphos gains ground

Limassol strengthened its position in the market. The district recorded 599 off-plan sale agreements worth €245.3 million. Its share of all transactions rose from 26.3% in Q2 to 30.6% in Q3, while its share of total value climbed from 32.4% to 40.5%.

Paphos also gained ground. Its share of transactions increased from 12.8% to 17%, while its share of total value rose from 21.2% to 22%.

Nicosia recorded 489 sales, but its share of transactions fell from 34.5% to 25%. Its share of total value also declined, from 26.2% to 16.2%.

Larnaca’s share of transactions remained broadly stable at 24%.

Famagusta accounted for 3.4%. of the total transactions.

Most off-plan sales were below €300,000

Homes priced below €300,000 accounted for 1,267 transactions, or 64.8% of Q3 sales. Their share was down from 68.1% in Q2, but lower and mid-priced properties still made up almost two in every three sales.

The largest price band was €200,000 to €299,999, with 545 transactions representing 27.9% of the total.

Properties priced between €300,000 and €499,999 followed with 521 sales, representing 26.6%.

Limassol city and Larnaca see strong activity

Limassol city remained the busiest individual locality, with 190 sales, up 47.3% from 129 in Q2. Larnaca city recorded 124 transactions, a 74.6% increase from 71.

Lakatamia ranked third with 111 sales, while Aradippou recorded 109. Aradippou’s total was down 10.7% from the previous quarter, though it remained among the leading areas by volume.

Paphos city recorded 96 sales, up from 79. Strovolos had 90, Livadia 79 and Germasogeia 73. Sales in Germasogeia rose 69.8% from 43.

Germasogeia and Agios Tychonas stand out for value

Germasogeia recorded 73 sales worth €44.8 million. Its median transaction value was €383,762 and its average was €613,991. Recorded prices ranged from €95,000 to €5.092 million.

Agios Tychonas had 16 transactions worth a combined €18.1 million. The median value was €647,123, while the average reached about €1.13 million. Prices ranged from €125,000 to €5.8 million.

Average values reflect the homes sold

The average value/sale agreement rose by 2% quarter on quarter, from €303,808 to €310,019.

The average apartment price was €269,217 and the median was €214,500.

The average house price stood at €478,138, with a median of €380,000.

Commenting on the results, Landbank Group Chief Executive Officer Andreas Christoforides, MRICS, said:

“The third-quarter picture is not limited to the significant increase in recorded off-plan sales. What is more revealing is how those transactions were distributed. Limassol increased its share of total value, Paphos gained ground in the number of transactions, while Nicosia, despite its lower share, continues to play a significant role in new developments.

“At the same time, almost two in every three sales involved properties priced below €300,000. The message for developers is clear: choosing the right location, property type and price band is crucial to a project’s sales absorption. The market is not uniform and cannot be assessed solely by looking at average prices or total sales.

“In areas such as Germasogeia and Agios Tychonas, high values go hand in hand with very different mixes of transactions. Reliable analysis must bring together transaction volumes, median values, the range of sale prices and the characteristics of the properties. That is the basis for better development and investment decisions,” he added.

Editor’s recommendation to potential buyers

Those considering buying a property in Cyprus off-plan must check the land title and any encumbrances, verify the status of planning and building permits, and have an independent lawyer review the sale contract before signing or paying. If permits have not yet been issued, make sure the contract clearly says what happens if they are refused, amended or delayed.

Further information regarding pre-purchase checks can be found at Essential due diligence for buying property in Cyprus.

Property transfers reach almost €4bn in first nine months of 2026

Cyprus News Agency
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Property transfers reach almost €4bn in first nine months of 2026

Cyprus property transfers reached €3.72 billion between January and September 2026, up 6.6% year on year. The number of transfers also rose by about 4.1%, according to the Cyprus Real Estate Agents Registration Council.

The Council, using figures from the Department of Lands and Surveys, also reported a 14% annual rise in sales contracts deposited across Cyprus. A total of 14,969 contracts were filed in the first nine months of 2026, compared with 13,173 in the same period of 2025.

Cyprus property market continues to grow

Council president Marinos Kineyirou said the property market was developing and supporting the growth of the Cypriot economy.

He said the increases in both the number and value of transactions were significant, following a strong year for the sector in 2025. Interest from both local and overseas buyers remained high, he added, and the signs suggested the market would finish 2026 on a positive note.

Limassol leads in property value

Limassol recorded the strongest performance by value. Property transfers there were worth €1.44 billion in the first nine months of 2026, representing 38.7% of the national total.

The district recorded 3,808 transfers. Sales contracts rose 17% year on year to 4,860.

Nicosia records the most property transfers

Nicosia had the highest number of property transfers, at 4,507. Their total value reached €811.85 million, placing the district second behind Limassol by value.

The number of sales contracts filed in Nicosia rose 6% year on year to 3,163.

Paphos records high-value property transfers

Paphos recorded 2,699 property transfers, fewer than Nicosia, Limassol and Larnaca. Their total value was €755.5 million, indicating a relatively high average value per property, the Council said.

Sales contracts in Paphos increased 18% year on year to 2,999.

Larnaca sees strong sales activity

Larnaca recorded 2,876 transfers worth €525.1 million in the first nine months of 2026.

The number of sales contracts rose 15% to 3,291. This was the second-highest increase among the districts, after Limassol.

Famagusta market also grows

The free Famagusta district remained the smallest property market in the government-controlled areas of Cyprus. Transfers between January and September were worth €192.8 million, with 874 transactions recorded.

The number of sales contracts rose 5% year on year to 656.

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