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Calls for unified housing authority grow

Nigel Howarth
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Calls for unified housing authority grow

Government policies aimed at tackling the housing crisis in Cyprus are increasingly being criticised as inadequate and piecemeal, with growing pressure from political groups and industry bodies for a more coherent, long-term strategy.

At the centre of the debate is the call for a unified housing authority, an idea put forward repeatedly by left-wing parties, professional organisations and social groups. Critics argue that the government continues to treat housing primarily as a market issue rather than a social necessity, aligning with broader European trends that prioritise profitability over accessibility.

A unified housing authority at the core of reform

Speakers at the “Right to Housing” conference, organised by AKEL under the auspices of the European Parliament representation in Cyprus, warned that housing must be recognised as a fundamental human right.

Constanti Constantinos, president of ETEK, stressed that while some measures have been implemented, many key proposals for a holistic approach remain unaddressed. Central among them is the creation of a single housing body tasked with gathering data, forecasting trends, and setting long-term strategy over the next 10 to 20 years.

Such a body, he argued, would replace the current fragmented system in which multiple government departments handle housing policy without coordination. “We cannot continue reacting to events,” he noted, urging a structured and evidence-based approach.

Empty homes and rising prices: a market out of balance

A particularly stark issue is the underutilisation of existing housing stock. According to analysis by ETEK, approximately 35,000 residential units in Cyprus remain effectively unused, identified through near-zero electricity consumption.

This reflects a broader paradox seen across Europe: an abundance of vacant properties alongside a growing population unable to secure affordable housing.

At the same time, property prices have surged dramatically. In some cases, apartment values have doubled within five years, rendering government subsidies largely ineffective. Even modest financial support schemes fail to keep pace with market inflation.

Tourism, investment & the squeeze on local buyers

The rapid pace of construction across Cyprus has not translated into improved affordability for residents. Instead, much of the development appears geared towards foreign investors.

Andreas Vyras, mayor of Larnaca, pointed to areas such as Livadia, where only a small fraction of new builds are accessible to local buyers. He also highlighted the proliferation of short-term rentals, noting that up to 95% of properties in some city centres are now let on a nightly basis, similar to Airbnb-style accommodation.

He proposed restrictions on such rentals in specific zones, drawing comparisons with regulatory measures recently introduced in Barcelona.

Young people priced out of the market

The social consequences are becoming increasingly acute, particularly for younger generations. Seviros Koulas of EDON described a generation facing harsher living conditions than their parents, with home ownership now perceived as unattainable.

Rising rents, especially in cities such as Limassol, have even forced some students to abandon university plans due to the cost of living.

Calls for immediate and coordinated action

Stakeholders across the board agree that both the Cypriot government and the European Union have been slow to act decisively. There is broad consensus on the need for:

  • A unified housing authority
  • Incentives to bring vacant properties back into use
  • Increased housing benefits aligned with current costs
  • Taxation on idle residential property
  • Greater involvement of local authorities in social housing delivery

While recent government plans to develop approximately 500 homes on state-owned land have been welcomed as a step in the right direction, critics insist the scale falls far short of what is required.

As the housing crisis deepens, the message from policymakers, industry leaders and social advocates is becoming increasingly clear: without bold, coordinated intervention, access to affordable housing in Cyprus will continue to deteriorate – particularly for the next generation.

(Translated and summarised from an article in dialogos)

Germasogeia building collapse prompts emergency rescue (Update)

Nigel Howarth
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Germasogeia building collapse prompts emergency rescue (Update)

Part of a two-storey residential building collapsed in Germasogeia shortly before 1.30pm on Orthodox Easter Saturday, prompting a large-scale emergency response and raising fresh concerns over structural safety standards in Cyprus’ residential sector.

Ambulances, firefighters, police officers and members of the Special Disaster Response Unit (EMAK) swiftly attended the scene, which has been cordoned off as search and rescue operations continue.

Authorities confirmed that communication has been established with one individual believed to be trapped beneath the debris, while search teams are investigating the possible presence of another missing person who has not yet been located.

Rescue efforts continue as authorities assess occupancy

According to Fire Service spokesperson Andreas Kettis, two individuals were successfully freed from the wreckage. Emergency responders remain in contact with a third trapped individual, while a fourth person is believed to be unaccounted for.

Police are working to determine the total number of occupants in the building, based on information provided by survivors. Early estimates suggest the property contained between eight and ten flats, with five to six people believed to have been inside at the time of the collapse. Some occupants were reportedly in the unaffected section of the building, while others were within the portion that gave way.

Authorities also noted that several residents are foreign nationals from third countries, with interpreters assisting efforts to communicate effectively during the rescue operation.

Two dead, three taken to hospital

A victim was found in the debris at approximately 5:30 p.m. and was later confirmed deceased. A second body was recovered around 7:30 p.m. following several hours of rescue operations.

Meanwhile, three individuals were transported to the hospital by ambulance, though their injuries are not considered life-threatening.

Multi-Agency response highlights structural safety concerns

A coordinated response involving the Fire Service, EMAK, Civil Defence, the Electricity Authority, police units and local government teams is ongoing. Specialist K9 search dogs are also being deployed to assist in locating individuals who may be trapped beneath the rubble.

Officials at the scene emphasised that the immediate priority is the careful removal of debris to facilitate safe rescue operations.

An operational command centre has been established under the direction of the Fire Service’s Chief Fire Officer, who is in direct communication with the Minister of Justice and Public Order. The Civil Defence Deputy Commander and the head of the Mobile Immediate Action Unit (MMAD) are also present.

Two civil engineers from the Ministry of the Interior have been mobilised to conduct an on-site structural assessment, supporting the development of an appropriate intervention strategy.

The incident is expected to intensify scrutiny of building conditions across Cyprus’ ageing residential stock, particularly in high-demand property areas such as Limassol’s suburban districts.

How many dangerous buildings are there?

According to a report in April 2025, there are 1,292 buildings considered to be dangerous and at risk of collapse, posing a threat to public safety:

  • Nicosia – 618
  • Limassol – 308
  • Larnaca – 170
  • Famagusta – 26
  • Paphos – 170

 

Cyprus aims to balance growth, affordability and investment

Nigel Howarth
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Cyprus aims to balance growth, affordability and investment

Cyprus must continue attracting foreign investment and companies relocating from abroad, while ensuring local residents are not priced out of the housing market, according to speakers at the Nicosia Economic Congress held on Wednesday at The Landmark Hotel in Nicosia.

Interior Minister Constantinos Ioannou joined Christiana Rotou of ROTOS Group and Demetris Tsiakkis of Themis Portfolio Management to discuss the future of the property and construction sectors. The panel focused on key issues including global uncertainty, infrastructure gaps, bureaucracy, energy costs and the need for reforms.

All speakers agreed that Cyprus remains an appealing destination for international investors and businesses, but said better planning and faster procedures are needed to make the most of this opportunity.

Foreign investment remains strong despite uncertainty

According to Demetris Tsiakkis, tensions in the Middle East have caused some investors to delay decisions, particularly in real estate. However, he expects demand to recover once the situation improves.

He said Cyprus continues to attract interest because of its location, EU membership and reputation as a safe place to live and do business.

Tsiakkis explained that foreign investment and business relocation are important for economic growth and job creation, but warned that rising demand for property could put pressure on local buyers if not properly managed.

He stressed that growth should benefit the wider economy, rather than simply pushing property prices higher.

Better infrastructure planning needed

Christiana Rotou said Cyprus has strong potential to attract companies and investors, especially from regions facing instability. However, she warned that development often moves forward before the necessary infrastructure is in place.

She said proper planning is needed to ensure there are enough homes, offices and transport options to support growth. Without this, cities risk becoming less functional and less attractive.

Rotou also highlighted ongoing challenges such as slow administrative procedures and a shortage of skilled workers. She added that more attention should be given to renovating older buildings, not only constructing new ones, as this could help increase supply and improve city centres.

Reforms aim to speed up licensing procedures

Interior Minister Constantinos Ioannou outlined reforms designed to improve the investment environment and reduce delays.

A key change is the fast-track licensing process, which now allows permits for houses to be issued within 40 working days. So far, more than 2,100 housing permits and 660 permits for small apartment buildings have been granted through the faster system, compared with waiting times of more than a year previously.

Changes to local government structures have also reduced the number of licensing authorities from 46 to five, with the aim of improving efficiency.

The Business Facilitation Unit is supporting large investment projects worth over €20 million or those creating more than 75 jobs, helping companies obtain approvals within a set timeframe.

Plans are also underway to digitise many Land Registry procedures to reduce paperwork and speed up processes.

Labour shortages and energy costs remain concerns

Industry representatives said bureaucracy remains one of the biggest obstacles to development, as administrative procedures often move more slowly than the private sector.

A lack of skilled workers is also becoming a serious issue for construction companies, making it harder for projects to move forward quickly.

Energy costs were identified as another challenge, as changes in the electricity market can affect the financial return of renewable energy investments.

Student housing offers economic opportunity

Student accommodation was highlighted as an important growth area, as international students contribute significantly to the local economy through rent and daily spending.

Rotou welcomed government measures to support the construction and renovation of student housing, but said policies should apply fairly across the sector so that existing investors are not placed at a disadvantage.

She noted that each international student contributes around €120,000 to the economy over four years, demonstrating the long-term value of the education sector.

Overall, the discussion showed that Cyprus’ property sector continues to attract strong interest from abroad, but must address issues such as infrastructure, skilled labour shortages, bureaucracy and energy costs.

While the government says reforms are already producing results, industry leaders believe further improvements are needed to ensure development supports both economic growth and quality of life.

Government aims to speed up housing development

Nigel Howarth
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0
Government aims to speed up housing development

The Cyprus government is focusing on faster planning approvals and increasing housing supply to make homes more affordable and generally improve the property market.

Interior Minister Constantinos Ioannou outlined the reform plans during his speech at the Nicosia Economic Congress at the Landmark Hotel in Nicosia. The measures aim to reduce delays, simplify procedures and create a more transparent environment for both buyers and investors.

The Ministry of Interior considers the land development and construction sector one of the most important parts of the economy, as it contributes significantly to economic growth and employment.

Property sector key to economic growth

According to the minister, the real estate and construction sector has long been a key driver of economic activity in Cyprus, supporting thousands of jobs and related professions.

He said ongoing communication between the government, industry organisations and technical experts helps ensure policies reflect real market needs and support future investment.

Events such as the Nicosia Economic Congress help bring together public and private sector stakeholders to discuss policies that affect the economy and business environment.

Market conditions becoming more challenging

Ioannou noted that the sector is facing increasing challenges due to global economic pressures, inflation, higher construction costs and strong housing demand.

Cyprus aims to remain an attractive destination for investment by improving the way public services operate and by making procedures faster and more efficient.

The government’s goal is to create a system that is simpler, quicker and more responsive to modern market conditions.

Faster planning approvals showing results

A major part of the reform programme focuses on speeding up the process for planning and building permits, which in the past caused long delays for developers and buyers.

New procedures now allow faster processing through digital systems and simplified application requirements. Some responsibility for application accuracy has also been transferred to private consultants, helping reduce pressure on public authorities.

Within the first year of implementation:

  • 2,100 house permits were issued within 40 days.
  • 660 permits for small apartment buildings (up to 20 units) were issued within 80 days.

Previously, these approvals could take up to 18 months or more.

Faster permits to increase housing supply

Quicker permit approvals are expected to help increase the number of new homes coming to market and reduce pressure on property prices.

Government estimates suggest more than 5,800 households may be able to secure housing two to three years earlier than under the previous system.

At the same time, authorities can now focus more on reviewing larger and more complex development projects.

Planning incentives encourage construction of new homes

The government has introduced planning incentives designed mainly to increase housing supply.

Developers can receive up to 45% additional building density if part of the extra space is used for residential development.

Based on applications already submitted, more than 10,000 new housing units could be built over the next two years, including around 1,300 affordable homes.

The policy is also expected to generate approximately €13 million in revenue for the state.

Housing policy linked to broader urban planning

The minister stressed that housing policy is closely connected to wider planning decisions, infrastructure development and transport systems.

For this reason, the government is promoting integrated planning approaches aimed at creating sustainable and well-functioning urban areas.

Reforms are also underway within the Department of Lands and Surveys to improve efficiency in property-related procedures.

Land Registry reform aims to reduce delays

Ioannou acknowledged that some Land Registry processes are outdated and can create delays for professionals and property owners.

The reform programme focuses on digitalisation, simpler procedures and faster processing times.

More than 150 forms and applications are being updated and digitised, which is expected to reduce errors, lower costs and shorten waiting times.

The Ministry is also considering greater use of private valuers, particularly in compulsory acquisition cases where delays are common.

Changes for transfer fees & state land management

The government is preparing legislative changes that would calculate transfer fees based on the declared sale price rather than property valuations.

This change is expected to make costs more predictable for buyers and reduce disputes and administrative workload.

New legislation is also being prepared to clarify procedures for allocating state land and to speed up the examination of right-of-way applications.

Updates to listed buildings framework

New measures also address delays related to listed buildings, which have often discouraged redevelopment.

Fast-track procedures have been introduced for low-risk applications, along with improved financial incentives for property owners.

Plans are also underway to create a central system for managing building density transfers, helping create a more flexible planning framework.

Cooperation with the private sector important

The minister emphasised that cooperation between the government, developers, investors and industry professionals is necessary for the reforms to succeed.

Policies will continue to be reviewed and adjusted based on market feedback and changing housing needs.

The overall aim is to maintain growth in the property sector, improve competitiveness and support a sustainable long-term development model for Cyprus.

 

Property sales surge 18% in March

Nigel Howarth
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0
Property sales surge 18% in March

According to official statistics published by the Department of Lands & Surveys (DLS), total of 1,761 property sale contracts were deposited at Land Registry during the month, up from 11,491 in March 2025.

The March total is just 142 short of the highest number of March sales (1,903) recorded in the best ever year for sales in 2007.

The DLS figures include residential properties (houses & apartments), commercial properties (offices, retail and warehouses) and land (fields & building plots.)

With the exception of Paphos, all districts recorded increased property sales:

Famagusta 88%, Limassol 49%, Nicosia 28%, Larnaca 7% and Paphos -3%.

Total contracts of sale deposited – 2025/2026 Comparison (Mar)

Property sales year to date

In the first quarter of 2026, the total number of property sales contracts deposited at Land Registry offices reached 4.709; a 14% increase compared to the 4,147 deposited in the first two months of 2025, with all districts recording gains:

Famagusta 36%, Limassol 16%, Nicosia 14%, Paphos 11% and Larnaca 9%.

Total contracts of sale deposited – 2025/2026 Year-to-Date Comparison

Property market outlook

Although US President Donald Trump and Iran have agreed a two-week ceasefire to allow for negotiations for a permanent peace agreement, the ceasefire is under threat as Israel’s Prime Minister Benjamin Netanyahu continues his attacks on Lebanon.

Iran said the Israeli strikes on Lebanon, which killed hundreds, violated the deal and made peace talks “unreasonable.” America and Israel insisted Lebanon was not included in the ceasefire, though mediator Pakistan says it was.

The situation remains extremely volatile, and we’ll have to wait to see how the Cyprus property market may be impacted if the ceasefire doesn’t hold and no peace agreement is reached.

Market segment overview

Domestic buyers continued to dominate the property sales in March.

  • Cypriot buyers: 732 sales (58.4% of all transactions)
  • EU citizens: 238 sales (13.5%)
  • Non-EU citizens: 494 sales (28.1%)

The chart below shows the year-to-date position of each market segment dating back to 2008. Note that it wasn’t until 2018 that the Department of Land & Surveys produced separate figure for EU and Non-EU buyers. Before 2018, EU and non-EU sales were combined and reported as “Overseas Sales Contracts”.

Cyprus property sales analysis March 2026

Market segment analysis

Domestic sales

Cypriot buyers deposited 866 sales contracts in March 2026, compared with 817 in March 2025, recording a 16% increase.

With the exception of Paphos, all districts recorded increased property sales:

Famagusta 39%, Nicosia 30%, Larnaca 23%, Limassol 4% and Paphos -8%.

Domestic contracts of sale deposited – 2025/2026 Comparison (Mar)

Domestic sales year to date

In the first quarter of 2026, the total number of property sales contracts deposited by Cypriots reached 2,665; an 8% increase compared to the 2,466 deposited in the first two months of 2025.

Once again, all districts recording gains with the exception of Paphos:

Famagusta 66%, Limassol 9%, Nicosia 13%, Larnaca no change and Paphos -13%.

Domestic contracts of sale deposited – 2025/2026 Comparison

EU property sales

EU citizens filed 238 property contracts in March, compared with 183 in March 2025, representing a 30% year-on-year increase, with all districts recording gains:

Limassol 73%, Famagusta 36%, Larnaca 18%, Nicosia 16% and Paphos 11%.

Contracts deposited by EU Nationals – 2025/2026 Comparison (Mar)

EU sales year to date

In the first three months of 2026, the total number of property sales contracts deposited by EU nationals (excluding Cypriots) reached 675; a 25% increase compared to the 538 deposited in the first three months of 2025.

With the exception of Famagusta, all districts recorded gains:

Paphos 35%, Limassol 30%, Larnaca 27%, Nicosia 24% and Famagusta -25%.

Contracts deposited by EU Nationals – 2025/2026 Comparison

Non-EU property sales

Non-EU citizens deposited 494 sales documents in March 2026, compared with 424 in March 2025, marking a 17% increase, with all districts recording gains except for Paphos:

Famagusta 129%, Limassol 40%, Nicosia 38%, Larnaca 4% and Paphos -10%.

Contracts deposited by non-EU Nationals – 2025/2026 Comparison (Mar)

Non-EU sales year to date

In the first quarter of 2026, the total number of property sales contracts deposited by non-EU nationals reached 1,369; a 21% increase compared to the 1133 deposited in the first quarter of 2025, with all districts recording gains:

Famagusta 54%, Limassol 26%, Nicosia 18%, Larnaca 19% and Paphos 15%.

Contracts deposited by non-EU Nationals – 2025/2026 Comparison

Overseas buyers continue to drive sales

The latest sales figures highlight the continuing importance of EU and non-EU buyers in the Cyprus property market, who together account for 43.4% of property sales so far this year.

In Paphos, EU and non-EU buyers together bought more than twice the number of properties than Cypriots.

Overall, the March results underline the resilience of the Cyprus property market, with strong demand from both domestic and overseas buyers supporting continued growth.

Market Segment Summary Analysis 2026 Year to Date

Anticipated legislation

Discussions are underway to regulate property purchases by non-EU nationals, including prohibiting them from acquiring agricultural or forest land, as well as a restricting them to buying just one residential property.

In addition, the legislation being discussed aims to close existing loopholes that have enabled multiple acquisitions through corporate structures, a practice that has drawn criticism amid concerns about affordability pressures in certain segments of the housing market.

Cyprus residential property prices hold steady in Q4 2025

Nigel Howarth
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0
Cyprus residential property prices hold steady in Q4 2025

Residential property prices across Europe maintained a steady upward path in the fourth quarter of 2025, with prices in Cyprus holding steady amid broader market growth.

According to figures released by Eurostat, the statistical office of the European Union, residential property prices increased by 5.1% year-on-year in the euro area and 5.5% across the EU in Q4 2025. This represents a marginal increase from the third quarter of 2025, when annual price growth stood at 5.1% in the eurozone and 5.4% in the wider EU.

On a quarterly basis, property prices rose 0.6% in the euro area and 0.8% across the EU, signalling continued market stability despite ongoing economic pressures including interest rate adjustments and inflationary trends.

Cyprus residential property prices stable in final quarter

While many European markets continued to experience price growth in final quarter, Cyprus recorded no change (0.0%) between Q3 and Q4 2025, following volatility earlier in the year.

Despite this pause in quarterly movement, the Cyprus residential property market posted a healthy annual increase of 6.0%, outperforming several larger European economies and reinforcing the island’s reputation as a resilient Mediterranean property destination.

(Earlier in 2025, Cyprus recorded quarterly changes of +4.2% in Q1, -1.8% in Q2, and +3.7% in Q3, reflecting a market adjusting to shifting borrowing costs and sustained international demand.)

European residential property market trends

Across the EU, twenty-five Member States recorded annual house price growth in Q4 2025, while only Finland saw a decline (-3.1%).

The strongest annual increases were observed in:

  • Hungary: +21.2%
  • Portugal: +18.9%
  • Croatia: +16.1%

Southern and Central European markets continued to outperform, supported by demand from international buyers, lifestyle relocations, and constrained housing supply.

Meanwhile, quarterly declines were recorded in France (-0.7%), Finland (-0.5%), and Estonia (-0.3%), suggesting some markets are beginning to stabilise after rapid post-pandemic expansion.

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