Fasouri School master plan moves forward in Limassol

Nigel Howarth
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Fasouri School master plan moves forward in Limassol

A major education and sports development known as Fasouri Academy and Sports Hub has reached the planning stage in Cyprus.

The master plan has been submitted to the relevant authorities for consideration. The proposed scheme is located in the Municipality of Kato Polemidia, near Limassol.

The project would include three school campuses covering the full education cycle, from pre-primary and primary education through to secondary school.

Each school would operate as a self-contained campus. Plans include modern classrooms, specialist science laboratories, libraries and facilities for art and music education.

Major sports hub planned alongside schools

The development would also feature a large sports centre designed to support both school and wider sporting activities.

Facilities would include a multi-purpose indoor hall, football and tennis pitches, a swimming pool and athletics track. The plans also include a gym, basketball courts, squash and padel courts, as well as recovery and support facilities.

Subject to certain conditions, the sports facilities could also be opened to the wider public. The aim would be to support physical education, sport and leisure activities in the surrounding area.

4,500 pupils planned for the development

According to the project study, the development would cover 307,844 sqm of usable land and provide capacity for around 4,500 pupils.

The scheme would employ 145 teaching and administrative staff. It would also include 643 car parking spaces and 57 spaces for buses.

The developer is seeking planning approval for the master plan as a whole. This approval would then provide the framework for separate planning and building applications covering the individual parts of the project.

Development raises environmental questions

The proposed scheme covers environmentally sensitive plots with a total area of about 360,000 sqm.

One of the main issues under discussion is the planning status of the site. Under the Statement of Policy for the Sovereign Base Areas of Akrotiri, the plots fall within Z1 Protection Zone.

The designation is intended to protect areas of archaeological, natural and landscape value. It also covers forests, protected landscapes, geological features and rivers or streams.

A smaller part of the site falls within the Republic of Cyprus, where it is classified as agricultural land under the Γα2 zone.

More than 7,000 trees could be removed

The environmental impact of the project is also likely to attract attention.

A total of 10,707 trees have been recorded across the plots. Most are cypress trees, mandarin trees and pomegranate trees.

The plans propose removing 7,083 trees. This includes 4,309 pomegranate trees, 2,774 mandarin trees and rows of cypress trees.

A total of 3,624 fruit trees would be retained. As a compensatory measure, the project proposes planting 2,800 new trees, including 1,738 cypresses, 689 pines and 373 trees for urban landscaping.

Fasouri area already seeing rapid growth

The proposed school and sports hub is situated within the wider Fasouri area, which has undergone significant redevelopment in recent years, much of it on land formerly used for citrus groves.

Within a one-kilometre radius are Fasouri Watermania, My Mall Limassol and City of Dreams Mediterranean.

Other major projects are also under consideration or subject to ongoing studies include the Limassol Greens Golf Resort; a massive, €400 million luxury master-planned resort development comprising a total of 500 villas and 250 apartments/penthouses. Spanning 1.4 million square meters, it is the largest master-planned residential community project in the city’s history.

Other large residential schemes for the area have been proposed by Emerland Real Estate, Brightbuild Properties and AN Sky Garden.

If it goes ahead, the Fasouri School master plan would form part of a wider transformation of the western Limassol area, where education, leisure, tourism and residential development are increasingly concentrated.

Proposed Akamas housing projects could deliver 89 villas

Nigel Howarth
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Proposed Akamas housing projects could deliver 89 villas

Three proposed Akamas housing projects worth a combined €46 million could deliver 89 new villas in the Akamas area of Cyprus.

The projects are at different stages of the planning process and environmental impact studies have been submitted to the Department of Environment. Construction will depend on securing the required planning and environmental approvals.

25 villas in a €16m development

The first proposed housing project is a €16 million residential scheme in the Pegeia Municipal District, within the Municipality of Akamas.

It would comprise 25 two-storey, four-bedroom villas, each with a basement, private garden, parking space and swimming pool. The homes would have basement areas of between 128.65 sq m and 176.40 sq m, while total floor areas would vary across the different levels.

The development would include 25 private swimming pools, an internal road network, pedestrian paths, green areas and parking. A biological wastewater treatment plant is also planned.

The site covers approximately 24,013 sq m.

€16.7m scheme with 34 homes

The second proposal has an estimated value of €16.7 million and would provide 34 detached, two-storey homes on a site of around 24,689 sq m.

The development would include 23 four-bedroom homes and 11 three-bedroom homes. Most properties would be arranged over two floors, with floor areas ranging from 127.45 sq m to 224.23 sq m.

Nineteen homes would also include basements ranging from 79 sq m to 144.45 sq m.

The plans provide for 27 swimming pools, including 26 private pools and one shared pool. A biological wastewater treatment plant would also be included.

30 homes in a €13.3m development

The third project has an estimated value of €13.3 million and would comprise 30 homes and shared facilities.

The development is proposed in the Neo Chorio Municipal District in Paphos district, within the Municipality of Polis Chrysochous. The site is approximately 1km west of the Akamas peninsula.

The environmental study submitted in July 2026 states that the project does not fall within a Natura 2000 protected area.

The homes would include ground, semi-basement and first-floor levels. Plans also include a communal services building, wastewater treatment facilities, parking and landscaped areas.

Amenities would include private and shared swimming pools, jacuzzis, massage areas and pedestrian paths.

The overall site measures around 13,713 sq m, with a net area of 9,811 sq m. The plans provide for 1,773 sq m of public green space and 236 sq m for community facilities.

Significant addition to Akamas property pipeline

Together, the three proposals represent €46 million of potential residential investment and could add 89 villas to the Akamas area. That’s an average investment approaching €517,000/villa.

The projects reflect continued interest in residential development in the wider Paphos region. However, none can proceed until the necessary environmental and planning approvals have been secured.

Cyprus property market: Q2 2026 update

Nigel Howarth
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Cyprus property market: Q2 2026 update

The Cyprus property market remained remarkably resilient in the second quarter of 2026, despite a more uncertain economic situation and geopolitical tensions in the region. The latest figures show a continued demand for homes, rising rents and strong interest in apartments. But the market is not moving at the same pace everywhere.

The latest RICS Cyprus Property Price Index with KPMG in Cyprus found positive price movements in most districts and property types in the second quarter of 2026. Apartments remained the strongest-performing residential asset, with Larnaca leading the market. House prices also increased, with particularly strong gains in Larnaca and Paphos.

The rental market is also growing stronger. Apartment rents recorded the strongest annual growth, followed by holiday properties and houses. Holiday apartments continued to outperform holiday houses, suggesting that fears over the effect of regional tensions on Cyprus’ tourism-led property market have so far failed to materialise.

Larnaca emerges as a key hotspot

Larnaca is the market to watch. It led the growth in apartment prices and also recorded the strongest rise in office values. Warehouses performed well in both Larnaca and Paphos, showing that demand is spreading beyond the traditional residential and holiday markets.

However, commercial property is mixed. Offices recorded moderate gains and warehouses continued to improve, but retail remained the weakest sector. Values rose modestly in most districts and fell slightly in Famagusta, suggesting that investors are becoming more selective.

Transaction activity gives another indication of the market’s strength. Cyprus Sotheby’s International Realty reports that 4,622 transactions worth €1.38bn took place during the second quarter, describing it as the strongest second quarter since 2016.

Cyprus property market benefits from rising new supply

Construction is responding to demand. Official figures show that 7,131 building permits were authorised for new dwelling units in the first four months of 2026, up 65% from a year earlier. Apartment blocks accounted for most of the increase, with permitted units up 85.9%.

Although the increase in supply of new dwelling units is welcome, it will take time to reach buyers and tenants. Construction costs are still rising. The Statistical Service reported that construction material prices were 3.12% higher year on year in June.

There are also wider economic risks. In June, the Central Bank of Cyprus said that economic sentiment had weakened in the second quarter, partly because of developments in the Middle East. Yet the property market continued to show strength.

For overseas buyers, the message is clear: Cyprus remains a strong but increasingly selective property market. Apartments, holiday homes and well-located properties are attracting the greatest interest. Larnaca, in particular, is emerging as a serious rival to the island’s established property hotspots.

The Q2 figures point to resilience rather than a property boom. Demand remains strong, supply is improving and rents continue to rise. But higher construction costs, affordability pressures and geopolitical uncertainty mean buyers and investors will need to focus closely on a property’s location, its quality and its potential long-term value.

Cyprus water crisis puts desalination plans under scrutiny

Nigel Howarth
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Cyprus water crisis puts desalination plans under scrutiny

Cyprus is gaining some relief from its water crisis, but pressure on supplies remains high. Daily demand for drinking water can reach 300,000 cubic metres during the summer, according to Gianna Oikonomidou, Senior Executive Engineer at the Water Development Department. She warned that the risk of shortages has not gone away.

The latest figures show a sharp improvement in water inflows. During the 2025-26 hydrological year, inflows reached 116 million cubic metres, compared with 18.7 million the previous year. Overall dam storage is now 38.1%, against 15% at the same point in 2025. Yet demand continues to drain reserves, while all five permanent desalination plants are operating at full capacity.

Mazotos plant sparks environmental dispute

That dependence on desalination is now creating a fresh dispute over Cyprus’ coastline. Residents of Mazotos are opposing plans for an €85 million desalination plant, which is due to start operating in December 2026. The plant is expected to produce 20,000 cubic metres of drinking water a day, with capacity to rise to 40,000 cubic metres.

Residents have challenged both the location and the environmental assessment. They argue that the coastline is relatively untouched and that construction could damage marine habitats, including Posidonia oceanica seagrass meadows. The Mazotos Community Council has commissioned an independent marine assessment and applied to the court for a suspension of works.

Environmental concerns also focus on the plant’s brine discharge. The Marine and Environmental Research Lab has warned that desalination can increase salinity, temperature and pH around discharge points. It says these changes may place particular pressure on sensitive seabed ecosystems.

Water security becomes a property issue

Critics are also questioning why the plant was not placed at an existing industrial site such as Vasiliko. The proposed infrastructure includes concrete foundations, processing units, storage tanks, substations, a 3.7-kilometre land pipeline and submarine intake and discharge pipes. Some opponents therefore dispute the description of the project as a genuinely “mobile” unit.

The government says the project is vital to water security and climate resilience. Agriculture Minister Maria Panayiotou has defended the environmental approval and said safeguards and monitoring conditions will protect the marine environment.

For Cyprus’ property market, the dispute highlights a wider issue. Reliable water supplies are increasingly important to residents, businesses, tourism and new development. Better rainfall has bought the island time, but continued high demand means water security is likely to remain a key infrastructure concern.

How can Cyprus bring 30,000 empty buildings back to life?

Nigel Howarth
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How can Cyprus bring 30,000 empty buildings back to life?

Cyprus could have a significant source of new housing sitting in plain sight. An estimated 30,000 buildings across the island are not being lived in and could potentially be repaired and brought back into use.

The figure comes from estimates by the Cyprus Scientific and Technical Chamber (ETEK). The properties could help increase the housing supply, particularly for people who cannot afford to buy and have little choice but to rent.

The issue has been raised by Charalambos Theopemptou, former chairman of the parliamentary Environment Committee. He began looking into the problem after moving to Agios Andreas in Nicosia, where he noticed a large number of abandoned buildings, including old mansions.

His research showed that the problem is not limited to Nicosia. Empty and abandoned homes can be found in rural areas and across Cyprus, at a time when housing costs remain a major concern.

What other EU countries are doing

Theopemptou examined how other European Union countries encourage owners to bring unused buildings back into use.

  • Ireland provides grants to renovate vacant and derelict homes. Funding can reach €50,000 for a vacant property and €70,000 for a derelict property.
  • France uses tax measures in areas facing strong housing pressure. These include specific taxes on homes that remain empty.
  • Spain allows municipalities, under certain conditions, to impose an additional charge on property tax for homes that have been vacant for a long period.
  • Portugal, meanwhile, promotes the restoration of buildings through a dedicated fund for urban renovation and the reuse of existing properties.

Cyprus already provides some support. The Ministry of Interior can offer up to €40,000 towards the renovation of a three-bedroom residential unit.

Theopemptou believes more could be done without creating a costly new system.

A national register of empty buildings

His first proposal is for every municipality and community to work with the Ministry of Interior and the relevant technical services to create a register of vacant, abandoned and dangerous buildings.

The register would need to distinguish between different types of property. A vacant building is not necessarily abandoned, while a dangerous building requires a different response from a listed property with architectural or historic value.

Buildings could then be ranked according to their potential for reuse. The register could record whether a property can be renovated, has historic value, is close to schools or public transport, or sits in an area where affordable housing is in high demand.

Such a system would allow local authorities to set priorities instead of responding to individual complaints.

Combine incentives with action

Theopemptou also proposes a mix of incentives and obligations for owners.

Owners willing to bring buildings back into use should receive fast technical advice, simpler procedures and targeted financial support. Existing schemes could provide a starting point.

He points to Cyprus’s energy upgrade programmes, including Exoikonomo – Anavathmizo, as examples of tools that could be adapted. These programmes could give priority to vacant and abandoned properties that are being returned to lawful use.

The aim would be to make renovation easier while ensuring public funding is directed towards properties with the greatest potential benefit.

Empty buildings could support local communities

Bringing abandoned buildings back into use could have benefits beyond housing.

Cyprus needs more affordable homes for students and other households. There is also scope for small shops, cultural spaces and other local facilities that can reduce the need for residents to travel by car.

Theopemptou argues that abandoned properties, especially in city centres and older residential areas, could form part of this solution.

The state and municipalities could consider long-term leases, partnerships with property owners and social enterprises. They could also look at public buildings that are currently unused.

Such approaches could bring dormant property back into economic and social use without relying solely on new construction.

Faster permits could unlock renovation

Another proposal is faster planning and building approval for small and medium-sized works.

Many abandoned buildings may not require major redevelopment. Instead, they may need a structural assessment, cleaning, removal of dangerous materials, basic repairs, energy improvements, better accessibility and reconnection to utilities.

A quicker approval process could make these projects more attractive to owners and investors. It could also reduce the time between identifying a property and putting it back into use.

Theopemptou believes Cyprus should also make better use of European funding.

Cyprus can tap into the EU renovation drive

The European Commission’s Renovation Wave aims to increase the annual rate of energy renovation and support the renovation of 35 million buildings by 2030.

Theopemptou argues that Cyprus should turn this wider European ambition into simple, fast and locally focused projects. It should also seek European funding to support the work.

For the property market, this could provide an opportunity to link housing policy with urban regeneration and energy efficiency.

Measure results and publish the data

Transparency would be another key part of the proposed system.

Local authorities could publish the number of abandoned buildings identified, how many were deemed dangerous, how many were cleaned or renovated and how many returned to use.

They could also report how many properties were converted for social purposes. Publishing the figures would make it easier to assess whether the policy is working and could strengthen applications for future funding.

Theopemptou says the issue affects far more than the appearance of individual neighbourhoods. It involves pedestrian safety, the protection of communities, the use of public and private property, the revival of town centres and access to housing.

For Cyprus, bringing abandoned buildings back into use could therefore offer a relatively practical way to add homes while improving existing neighbourhoods.

The challenge is turning the idea into a clear system of identification, funding, regulation and delivery. If that can be achieved, thousands of buildings that are currently a burden could become part of the island’s future housing supply.

Larnaca leads Cyprus property market as apartments outperform

Nigel Howarth
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0
Larnaca leads Cyprus property market as apartments outperform

Cyprus property prices continued to rise in the second quarter of 2026, with Larnaca emerging as the strongest-performing district across several parts of the market. The latest RICS Cyprus Property Index with KPMG in Cyprus shows broad gains in residential and commercial property, although retail remained the weakest asset class.

Apartments were the standout performer during the quarter. Across Cyprus, apartment values rose by more than 5% year on year, ahead of warehouses and houses. The report also highlights continued strength in holiday apartments, reflecting firm demand linked to the tourism sector.

Larnaca leads the Cyprus property market

Larnaca recorded the strongest overall performance for apartments, while also leading growth in houses, offices and warehouses. Paphos was another strong market, particularly for houses and warehouses. Limassol posted more moderate gains, while Nicosia was largely flat in residential property and recorded only a small rise in offices.

The figures suggest that the recovery is not spread evenly across Cyprus. Larnaca stands out for the breadth of its gains, while Nicosia has seen less movement. Famagusta also lagged in several categories, with retail values recording a minor decline.

Apartments remain the Cyprus property market leader

Residential property continues to provide much of the momentum in the Cyprus market. Apartments recorded a 5.42% year-on-year increase, compared with 4.04% for houses, according to the index. Retail was much weaker, with growth of just 0.66%, while warehouses rose 4.22% and offices increased 3.69%.

Rental values are also moving higher. Apartments recorded the largest rental increase, followed by holiday apartments and houses. Retail posted the smallest gain, reinforcing its position as the weakest-performing major property sector in the latest index.

Holiday property demand stays firm

Holiday property remains a bright spot for Cyprus. Both holiday apartments and holiday houses recorded price increases in the second quarter, with the report linking the trend to the continuing strength of the tourism sector.

Larnaca recorded the strongest quarterly price increase for both holiday apartments and holiday houses. Famagusta showed the smallest movement for holiday apartments, while Limassol recorded the lowest movement for holiday houses. On a year-on-year basis, holiday apartments continued to outperform holiday houses.

Market yields remain broadly stable

Investment yields changed little over the year to the second quarter of 2026. Apartment yields rose from 5.41% to 5.51%, while house yields increased from 2.97% to 3.01%. Retail yields moved from 5.75% to 5.78%, and office yields rose slightly from 5.61% to 5.63%.

Holiday apartments also saw a modest rise in yield, from 5.75% to 5.82%. Holiday house yields increased from 2.79% to 2.85%. Warehouse yields were the exception, edging down from 4.24% to 4.15%.

A market still moving upwards

The second-quarter index points to a Cyprus property market that remains broadly positive, but with clear differences between locations and asset types. Apartments are leading the market, while holiday property continues to benefit from strong tourism demand. Larnaca is the district to watch, given its strong performance across several sectors.

Retail remains the main weak spot. With gains limited in most areas and a decline recorded in Famagusta, investors may continue to favour residential and selected commercial assets. Overall, the latest RICS and KPMG data suggests that Cyprus property prices are still edging higher rather than entering a broad-based downturn.

RICS/KPMG Commentary

On behalf of KPMG in Cyprus, Christophoros Anayiotos, Board Member and Head of the Real Estate Industry Group, stated:

“During the second quarter of 2026, the Cyprus’ property market continued to demonstrate resilience, with positive price movements recorded across most districts and asset categories. Apartments remained the strongest-performing asset class, showing growth across all major districts, with Larnaca leading the market. Housing values also recorded positive gains, particularly in Larnaca and Paphos, reflecting continued demand in the residential sector.

“Offices registered moderate increases, with the strongest growth observed in Larnaca, while Warehouses continued their positive course, supported by notable gains in Larnaca and Paphos. Retail properties remained the weakest-performing asset class, recording only modest growth in most districts and a slight decline in Famagusta, indicating that demand in this segment continues to lag behind other sectors.

“Rental values maintained their upward trend, with Apartments posting the strongest annual increases, followed by Holiday assets and Houses. The holiday property sector continued to perform positively, with Holiday Apartments outperforming Holiday Houses, highlighting the ongoing strength of Cyprus’ tourism market.

“Overall, the second quarter reflects a stable and healthy market environment, underpinned by sustained demand for residential and holiday assets, while commercial properties continue to show selective growth, albeit Retail which remains the least favoured asset class”.

On behalf of RICS, Simon Rubinsohn, RICS Chief Economist, commented:

“The Cypriot economy continues to demonstrate considerable resilience in the face of the ongoing geopolitical challenges. The latest results from the RICS Cyprus Property Price Index with KPMG in Cyprus demonstrate this clearly with concerns about the impact on the tourist industry in particular failing to be realised as holiday related assets continue to move upwards in pricing.

“Another indication that the commercial real estate sector is holding up is provided by the RICS Cyprus Commercial Property Monitor which shows a modest improvement in sentiment in recent months and overseas investment enquiries picking up after a softer first quarter”.

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