Cyprus to tighten dangerous buildings law with tougher penalties

Nigel Howarth
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Cyprus to tighten dangerous buildings law with tougher penalties

Cyprus is set to overhaul its legal framework for dangerous buildings, introducing tougher enforcement powers, higher fines and new preventive measures aimed at protecting public safety, particularly in urban areas and historic town centres.

The proposed legislation, tabled by Parliament’s Standing Committee on Internal Affairs, would amend the Streets and Buildings Regulation Law to give authorities greater powers to identify, secure and, where necessary, demolish unsafe properties before they pose an immediate threat.

The reforms follow growing concern over repeated incidents involving collapsing buildings and falling masonry, highlighting weaknesses in the current legal framework.

Preventive action before buildings become dangerous

A key feature of the proposal is the introduction of a new legal category for “potentially dangerous buildings”.

For the first time, authorities would be able to intervene where a building shows signs of deterioration that could soon develop into a serious safety risk, rather than waiting until the structure is officially classified as dangerous.

The definition of a dangerous building would also be broadened considerably. Instead of focusing primarily on structural stability, it would also cover deficiencies relating to fire safety, poor maintenance, corrosion, subsidence, construction defects, structural failures and other conditions that could endanger occupants, neighbouring properties or members of the public.

New powers for authorities

Under the proposed law, following a visual inspection, the authorities could require the owner to appoint a qualified engineer or consultant to prepare a technical report or structural assessment.

Owners could also be instructed to carry out precautionary measures, including:

  • repairing defects;
  • removing hazardous elements;
  • installing protective measures; or
  • fencing off unsafe areas.

Property owners and occupiers would have 30 days to submit written representations after receiving formal notice.

For buildings already classified as dangerous, authorities would gain significantly stronger enforcement powers. They could require the immediate preparation of a technical remediation plan detailing all necessary repair works, protective measures or demolition where required.

Evacuation, sealing and demolition of dangerous buildings

The legislation would also allow authorities to order the evacuation of dangerous buildings.

If occupants refused to leave, the authority could apply to the court for an order permitting their removal and authorising the building to be sealed by installing physical barriers to prevent access and use of the building.

Where owners fail to comply with official notices, authorities would be empowered to:

  • disconnect water supplies;
  • request electricity disconnection from the Distribution System Operator;
  • carry out repairs or demolition themselves; and
  • recover all associated costs through civil proceedings.

Any expenditure incurred could also be registered as a legal charge against the property, ensuring recovery of public funds.

Owners would have the option of repaying the debt over up to 36 monthly instalments, subject to an additional fee of no more than 2% of the total cost.

Fines to double

The proposed legislation substantially increases financial penalties for non-compliance.

Maximum fines would rise from €10,000 to €20,000 for a first conviction and from €20,000 to €40,000 for subsequent convictions. Prison sentences would remain unchanged.

Administrative penalties imposed directly by the authorities would also double, increasing from €20,000 to €40,000.

The bill also introduces fixed penalty notices for the first time. Owners who fail to fence a dangerous building could face an on-the-spot fine of €2,000, while failure to seal an unsafe building could attract a €1,000 fine.

If these penalties are paid within 45 days, criminal proceedings for the specific offence would not be pursued. Failure to pay would result in prosecution before the courts.

Faster reporting and enforcement

The proposed reforms would require municipalities and community councils to notify the authorities immediately when they identify dangerous or potentially dangerous buildings within their jurisdiction.

The Director of Development Licensing would also be permitted to delegate specific responsibilities to officers within the District Local Government Organisations, helping accelerate enforcement and reduce delays.

The reforms represent one of the most significant changes to Cyprus’ dangerous buildings legislation in recent years and are intended to strengthen public safety following a series of building collapses and the continuing deterioration of ageing properties across the island.

Further reading

Proposal to tighten Cyprus dangerous buildings law with tougher penalties (Greek)

Cyprus launches iJustice platform to modernise courts

Nigel Howarth
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Cyprus launches iJustice platform to modernise courts

Cyprus has launched the first phase of its long-awaited iJustice platform, marking a significant step in the digital transformation of the country’s judicial system and raising hopes that more efficient courts will improve the investment climate, including the real estate sector.

The new iJustice platform was unveiled by Deputy Minister for Research, Innovation and Digital Policy Nikodemos Damianou during a press conference attended by representatives of the Judicial Service and the Cyprus Bar Association.

The launch forms the first stage of a broader programme to transform iJustice into a fully integrated court management system that will digitalise the entire lifecycle of court cases.

Modernising a system long affected by delays

Damianou described the project as an important milestone in modernising a sector where Cyprus has historically lagged behind in adopting digital technologies.

The new system enables the electronic filing, management, monitoring and administrative oversight of court cases. Built on a completely new technological platform, it offers enhanced functionality and a more user-friendly interface for judges, lawyers, court registrars, judicial officers and members of the public.

Among the new features are:

  • electronic management of interim applications;
  • greater alignment with Cyprus’ new Civil Procedure Rules;
  • preparation for integrating the Commercial Court and Admiralty Court into the system.

Damianou said the greatest advantage is the creation of a single, modern technological platform that can be expanded over time with new services and capabilities.

Lessons learned from earlier setbacks

The Deputy Minister acknowledged that difficult decisions had been required to get the project back on track, including terminating the previous contract after years of delays.

He revealed that the earlier procurement process took four years to complete before the project itself accumulated almost two years of further delays.

Since March 2025, development has followed a different approach, with close collaboration between the Judicial Service, the Cyprus Bar Association and end users to ensure the platform reflects the practical needs of the courts.

Rather than attempting a single large-scale rollout, the system is being delivered in phases, allowing faster implementation, better risk management and continuous improvements based on user feedback.

Full digital transformation planned by 2027

Future phases, scheduled for completion by 2027, will extend iJustice to additional courts and criminal jurisdictions while introducing further digital services.

The platform will also connect with other government information systems, including the Police warrant management system, enabling greater automation and more efficient information sharing across public services.

Officials are also examining the integration of artificial intelligence (AI) tools to assist legal research by helping users search legislation and case law more efficiently.

Cyprus’ forthcoming National Artificial Intelligence Strategy identifies the justice system as one of the sectors where technology could significantly improve efficiency and reduce delays.

Additional plans include:

  • remote court hearings;
  • AI-assisted digital recording and automatic transcription of proceedings;
  • courtroom display screens for presenting electronic evidence directly from digital case files.

According to Damianou, these initiatives form part of a unified strategy to fully digitalise the operation of Cyprus’ courts.

Benefits for property investment

The launch of iJustice comes against a backdrop of long-standing concerns over judicial delays, which have been widely recognised as a drag on Cyprus’ economy and property market.

As previously reported, lengthy court proceedings have discouraged investment, delayed commercial dispute resolution and weakened confidence among domestic and international property investors. Faster, more efficient courts are regarded as an essential element in improving the country’s competitiveness and strengthening the rule of law.

Judicial Service welcomes reforms

Judicial Service Registrar Andreas Tserkezos described Phase One of iJustice as a project of major importance that significantly strengthens the system’s security, performance and technical architecture while maintaining ease of use.

He said the objective is to use technology to save time and reduce costs while improving the delivery of justice.

Meanwhile, Cyprus Bar Association President Michalis Vorkas welcomed the government’s response to a long-standing request from the legal profession.

He said the combination of the new iJustice platform, the new Civil Procedure Rules and active participation by users has the potential to reduce court delays substantially, reinforce the rule of law and improve Cyprus’ investment environment.

Cyprus must turn housing pledge into homes

Kyriacos Nicolaou
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Cyprus must turn housing pledge into homes

Cyprus’ pledge to deliver 10,000 new homes marks an important step towards tackling the country’s housing challenges, but meaningful progress will ultimately depend on whether the country can create the conditions needed to translate political commitments into completed developments.

After years of debate over rising rents, affordability and housing shortages, the national conversation has finally shifted towards increasing housing supply, the one factor most likely to bring lasting change to the market.

The commitment by Cyprus’ political parties deserves recognition because it acknowledges that boosting supply, rather than simply managing demand, is essential if housing affordability is to improve over the long term.

However, setting a target is only the beginning, with the greater challenge lying in removing the barriers that continue to slow residential development.

Housing should no longer be viewed solely as a social issue, but increasingly as a matter of economic competitiveness.

Countries seeking to attract international investment and highly skilled professionals are judged not only on taxation and the quality of their business environment, but also on whether they can offer quality housing at an affordable cost.

Without sufficient housing, attracting talent becomes more difficult, businesses face constraints on expansion and long-term economic growth slows.

This is especially relevant for Cyprus, which has established itself as an emerging technology and business hub.

As more international companies establish operations on the island and demand for skilled workers continues to grow, housing is becoming an increasingly important part of the country’s economic infrastructure.

One of the biggest obstacles to increasing supply remains the length of the development approval process.

Lengthy permitting procedures, multiple stages of approval, planning uncertainty and administrative delays all increase development costs before construction even begins, with those costs ultimately filtering through to homebuyers and tenants.

Modernising and accelerating the permitting system would therefore have an immediate impact on housing delivery.

Measures such as digital applications, parallel rather than sequential reviews, clearly defined approval timelines and dedicated fast-track procedures for strategic housing projects could significantly reduce delays while preserving transparency and regulatory oversight.

Reducing unnecessary obstacles within the development process should be regarded as an investment in Cyprus’ competitiveness rather than simply an administrative reform.

Increasing the number of homes alone, however, will not be enough, as the market also requires a broader mix of housing types.

Across Europe, professionally managed rental communities have become an increasingly important part of the housing market.

The Build-to-Rent model, under which residential developments are specifically designed and operated for long-term rental, has expanded rapidly in countries including the United Kingdom, Ireland and Spain.

These developments provide professionally managed accommodation, improve rental quality and, crucially, add new housing supply rather than competing for existing properties.

For Cyprus, Build-to-Rent should be viewed as one of several complementary solutions capable of improving housing availability while attracting long-term institutional investment into the residential sector.

International experience shows that no single policy has been sufficient to solve housing shortages.

Vienna has successfully combined public investment with non-profit housing associations for decades, creating one of Europe’s most affordable housing systems.

Ireland has accelerated housing delivery through stronger cooperation between the public and private sectors.

The United Kingdom has encouraged institutional investment in purpose-built rental developments through a stable planning framework and long-term policy certainty.

Although each country has adopted a different approach, they all share a common characteristic by increasing housing supply through cooperation between governments and private capital.

Cyprus has the opportunity to follow a similar path.

Doing so also requires a stable investment environment, with long-term residential developments depending on regulatory certainty, efficient planning procedures and tax policies that encourage rather than discourage new housing supply.

Measures relating to VAT, planning rules and development approvals should ultimately be judged on one simple question, whether they help deliver more homes.

If they do not, reform should be considered.

The debate should now move beyond whether 10,000 homes will be enough.

The more important question is whether Cyprus is prepared to create the conditions necessary not only to deliver those 10,000 homes, but also to continue building well beyond that target in the years ahead.

Housing is no longer simply about property, but increasingly about talent, competitiveness, investment and Cyprus’ long-term economic future.

The commitment has now been made, but success will ultimately be measured not by the number announced, but by how quickly and effectively Cyprus turns that ambition into new homes for the people who need them.

CM

Cyprus building costs rise as material prices increase

Nigel Howarth
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Cyprus building costs rise as material prices increase

Anyone planning to build or renovate a property in Cyprus is facing higher costs once again, as construction material prices continued to become more expensive in June 2026.

The latest figures from the Cyprus Statistical Service (CySTAT) show that the Construction Materials Price Index reached 122.74 points in June 2026 (base year 2021=100), representing an annual increase of 3.12%. The data highlight broad-based price growth, with every major category of construction materials recording year-on-year increases.

Metal products record the sharpest annual increase

Metal products saw the strongest annual price growth, rising by 5.02% compared with June 2025.

They were followed by wood products, insulation materials, chemicals and plastics, which collectively recorded an increase of 4.07%.

Elsewhere, electromechanical equipment rose by 2.99%, minerals increased by 2.49%, while mineral products posted a more modest rise of 0.61%.

The latest figures suggest that inflationary pressures remain widespread across the construction sector, adding further costs for developers, contractors and homeowners undertaking renovation projects.

Construction materials at a building site in Cyprus as material prices increase in June 2026

Aluminium and plastics post the biggest category gains

A closer look at the data reveals notable differences between individual product groups.

Within the minerals category:

  • Aggregates increased by 1.56%
  • Cement materials rose by 3.82%
  • Stone products climbed by 1.30%

Among mineral products, cement-based products recorded a 0.79% increase, while ceramic products were virtually unchanged, edging up by just 0.01%.

In the wood, insulation, chemicals and plastics category:

  • Wood products increased by 4.38%
  • Insulation materials rose by 1.16%
  • Chemical products gained 2.64%
  • Plastic products jumped 6.53%

Meanwhile, metal products continued to experience significant price pressures. Iron and steel products increased by 3.76%, while aluminium and other metal products surged 7.56%—the largest annual increase recorded among all individual sub-categories.

Mixed picture for electromechanical equipment

Price movements within electromechanical products were more varied.

Electrical equipment recorded a substantial 6.23% increase, while heating and cooling equipment was the only category to decline, falling 1.67% over the year.

Other electromechanical products rose by 2.77%.

First-half figures point to continued cost inflation

For the January to June 2026 period, the overall Construction Materials Price Index increased by 1.62% compared with the corresponding period of 2025.

By main product category, the largest increases during the first half of the year were recorded in:

  • Electromechanical equipment (2.59%)
  • Wood products, insulation, chemicals and plastics (2.27%)
  • Minerals (1.89%)
  • Metal products (1.78%)
  • Mineral products (0.30%)

The continued rise in construction material prices is expected to maintain upward pressure on the cost of new developments and refurbishment projects across Cyprus, with higher input costs likely to remain a key challenge for the property and construction sectors throughout 2026.

Cyprus justice delays weigh on economy and property investment

Nigel Howarth
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Cyprus justice delays weigh on economy and property investment

The EU Justice Scoreboard 2026 has once again exposed one of Cyprus’ most persistent structural weaknesses. Despite years of reform efforts aimed at modernising the judiciary, the Cyprus courts remain among the slowest in Europe, with lengthy delays continuing to undermine economic activity, investor confidence and the wider Cyprus property market.

The latest figures paint a stark picture. While incremental improvements have been introduced in recent years, the data demonstrates that far more ambitious reforms are required if Cyprus is to provide businesses and investors with the legal certainty expected of a modern European economy.

Court delays in Cyprus continue to worsen

The 2026 findings offer little reassurance. In several key indicators, performance has deteriorated rather than improved.

In civil, commercial, administrative and other cases, the estimated time required to resolve disputes increased from around 600 days in 2023 to almost 710 days in 2024, leaving Cyprus with the longest waiting time in the European Union.

The estimated time resolve disputes in Cyprus civil and commercial cases in 2026,
Estimated time needed to resolve civil, commercial, administrative and other cases in 2014, 2022 – 2024

Although Cyprus continues to record respectable clearance rates, these figures tell only part of the story. The substantial backlog of unresolved cases means that progress remains insufficient to reduce waiting times in any meaningful way. For businesses and citizens, the reality is simple: justice continues to be delayed.

Why slow justice matters for the property market

A sluggish judicial system is not merely a constitutional concern; it has direct economic consequences.

When civil and commercial disputes remain tied up in the courts for years, significant capital becomes trapped in litigation. Cash flow is restricted, commercial transactions are delayed and businesses face prolonged uncertainty when attempting to recover debts or enforce contractual obligations.

For the real estate sector, these delays can prove especially damaging. Property developments, contractual disputes, planning challenges and commercial agreements all rely on a court system capable of delivering timely and predictable outcomes. Extended litigation increases financial risk, discourages investment and raises the cost of doing business.

Efficient dispute resolution is a cornerstone of every competitive property market. Without it, confidence inevitably suffers.

Foreign investors need legal certainty

International investors carefully assess the legal environment before committing capital to any jurisdiction.

A country that cannot resolve commercial disputes within a reasonable timeframe inevitably becomes less attractive for foreign direct investment. Investors require confidence that contracts will be enforced efficiently and that legal protection will be available when disputes arise.

This remains one of Cyprus’ greatest competitive challenges. Those promoting the island as an investment destination must increasingly answer a difficult question: why should international investors commit substantial capital when legal disputes may take years to conclude?

In an increasingly competitive global investment landscape, judicial efficiency has become as important as taxation, infrastructure and political stability.

Reform requires stronger political commitment

The challenges facing Cyprus’ justice system are well understood. Numerous domestic and international institutions have analysed the problem in detail over many years. The issue is no longer diagnosis but implementation.

The EU Justice Scoreboard 2026 once again highlights Cyprus’ chronic underinvestment in its judicial system. Public expenditure on the courts remains the lowest in the European Union as a proportion of GDP, while the number of judges per 100,000 inhabitants continues to lag behind many comparable European jurisdictions.

Responsibility, however, extends beyond government alone. The judiciary itself must continue to improve the management of case backlogs, strengthen internal administrative processes, enforce stricter case management and fully embrace digital justice tools to improve efficiency.

Faster justice is essential for economic growth

Addressing judicial delays should now become a national priority.

Both the executive and legislative branches must accelerate reforms that increase the speed of justice without compromising judicial quality or independence. A more efficient court system would strengthen the rule of law, improve business confidence, unlock investment capital and enhance the competitiveness of Cyprus’ property market.

For an economy that depends heavily on international investment, restoring confidence in the justice system is no longer simply a legal imperative. It is an economic necessity.

Limassol Mall approved despite traffic concerns

Nigel Howarth
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Limassol Mall approved despite traffic concerns

The Cyprus Government has approved plans for the long-awaited Limassol Mall, paving the way for a €100 million retail development in the municipality of Amathounta.

However, the decision has sparked widespread criticism from local authorities, business owners and opposition politicians, who argue that the project is moving ahead before essential transport infrastructure is in place.

The Cabinet approved the development by way of a planning derogation, while rejecting a competing proposal for a separate “MyMall Limassol” submitted by Atterbury Europe, the company behind Mall of Cyprus and Mall of Engomi.

Limassol Mall: A major retail investment for eastern Limassol

The new shopping centre will be developed in the commercial and industrial zone of Agios Athanasios by the ownership group behind Nicosia Mall, which includes leading Cypriot business groups such as Zorbas Group, PHC Group, Athienitis Group and VLM Group, in partnership with Papantoniou.

According to the planning documents submitted by the developers, the scheme represents an investment of approximately €100 million, around half of which will be allocated to fitting out retail units. Once completed, the project is expected to create around 1,000 new jobs.

The development will comprise:

  • Approximately 28,434 sq m of leasable retail space
  • Around 76,392 sq m of total covered development
  • Two basement levels, a ground floor, mezzanine and two upper floors
  • Around 90 retail units
  • Six large kiosks
  • Nine food and beverage outlets, including restaurants and cafés
  • A food court with seating for approximately 500 people
  • A five-screen cinema
  • Family entertainment and gaming facilities
  • 1,270 parking spaces

Developers estimate daily footfall of between 6,700 and 11,700 visitors, with an average of approximately 8,800 people per day.

Road improvements formed part of the approval

The approval follows discussions surrounding the long-awaited transport masterplan for Agios Athanasios, which local authorities had consistently argued should be delivered before any major commercial development proceeds.

As part of the project, three new roundabouts will be constructed on the surrounding road network to improve traffic circulation.

However, municipal leaders insist these works alone will not be sufficient.

Infrastructure must come first

Amathounta Municipality has reiterated that it does not oppose investment or economic development in principle.

Instead, its position has consistently been that no planning approval should be granted until major transport projects are either completed or under construction.

The municipality argues that it repeatedly warned the Government that the existing road network is already operating under significant pressure and that approving a development of this scale without wider infrastructure improvements risks making congestion considerably worse.

Among the key projects the municipality says should precede the mall are:

  • The widening and extension of Agios Athanasios Avenue
  • Sustainable transport improvements, including bus priority measures
  • New pedestrian routes and cycle lanes
  • Completion of the Northern Bypass road
  • Additional connecting roads linking Germasogeia and Agios Athanasios

Municipal officials also expressed frustration that they learned of the Cabinet’s decision through media reports rather than formal government communication and say they have yet to receive confirmation that the conditions they proposed have been incorporated into the approval.

In a subsequent statement, Amathounta Municipality stressed that responsibility for delivering public infrastructure lies with the state rather than private developers.

Traffic remains the biggest concern

Transport capacity has emerged as the central issue in the debate.

Local officials note that the Agios Athanasios roundabout already accommodates approximately 110,000 vehicle movements every day, while Limassol continues to struggle with severe congestion across its main road network.

Municipal representatives argue that adding a major regional shopping destination before completing key road upgrades could significantly increase journey times, vehicle emissions and pressure on surrounding neighbourhoods.

They maintain that the development could still proceed successfully, provided the necessary infrastructure is delivered alongside it rather than afterwards.

Historic city centre businesses fear economic impact

The approval has also prompted a strong reaction from traders operating within Limassol’s historic commercial centre.

Representatives of local businesses have written to President Nikos Christodoulides requesting a meeting to discuss the decision, arguing that another large shopping centre risks drawing trade away from established retail streets.

Business owners warn that independent retailers, many of which have only recently recovered from years of economic challenges, could struggle to compete with a modern regional shopping destination.

Several have also questioned the value of public consultation processes if local concerns are ultimately disregarded.

Existing mall owner seeks legal advice

The decision has also attracted criticism from Andreas Hadjimitsis, founder and co-owner of MyMall Limassol.

He said he intends to seek legal advice regarding the conditions attached to the approval, questioning both the speed of the decision and whether sufficient consideration has been given to the area’s existing transport constraints.

While acknowledging that Limassol could support another shopping centre, he argued that its location should minimise impacts on the city’s already congested road network and established retail districts.

Political opposition questions planning strategy

AKEL Limassol has condemned the Government’s decision, arguing that it conflicts with principles of sustainable urban planning.

The party claims the approval prioritises major commercial interests over residents’ quality of life and warns that increasing dependence on private car travel runs counter to modern European planning policies.

It also argues that the development could place additional pressure on small and medium-sized businesses while increasing congestion and environmental impacts.

Instead, AKEL is calling for greater investment in Limassol’s historic centre, traditional shopping streets and public spaces designed to strengthen local communities and support smaller businesses.

Developer highlights regeneration benefits

The developers maintain that the new Limassol Mall will bring significant economic benefits to eastern Limassol.

George Georgiou, General Manager of Nicosia Mall, said the project would help upgrade the wider area and create a modern retail destination capable of serving the city’s growing population.

Limassol Mall outlook

Cabinet approval represents a major milestone for one of Cyprus’ largest commercial real estate projects.

Yet the debate surrounding Limassol Mall is far from over.

While supporters point to investment, employment and regional regeneration, opponents argue that the success of the development will ultimately depend on whether the Government delivers the long-promised transport infrastructure needed to support it.

As planning moves into the next phase, the focus is likely to shift from the principle of development to whether the road improvements, sustainable mobility measures and wider infrastructure commitments are implemented in time to prevent the project from exacerbating Limassol’s already pressing congestion challenges.

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