Renewed calls for building MOTs after Limassol balcony collapse

Nigel Howarth
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2
Renewed calls for building MOTs after Limassol balcony collapse

The Cyprus Scientific and Technical Chamber (ETEK) has renewed calls for the introduction of mandatory building MOT-style inspections following the latest balcony collapse at an apartment block in Limassol.

Speaking to the Cyprus News Agency, ETEK Secretary General and civil engineer Andreas Theodotou said the incident once again highlights the growing challenges posed by Cyprus’ ageing building stock, much of which was constructed before modern building regulations came into force.

The Limassol district governor, Yiannis Tsouloftas, said the apartment building had not been designated as dangerous, although the municipality had identified it as requiring maintenance.

Ageing buildings under increasing pressure

According to Mr Theodotou, many of the island’s older residential buildings were designed and built before 1994, prior to the implementation of current regulatory standards.

He noted that a significant number of properties were constructed in the years following the 1974 Turkish invasion, often under time pressures, with limited supervision and, in some cases, lower-quality construction materials.

However, he stressed that the biggest issue facing the sector today is a lack of ongoing maintenance. This is particularly evident in jointly owned apartment buildings, where reaching agreement among multiple property owners on repair and maintenance work can prove difficult.

As a result, many apartment blocks across Cyprus remain in poor condition, raising concerns about long-term structural safety.

Mandatory building MOTs proposed

ETEK is once again advocating the introduction of a regular building inspection system, similar to the MOT regime used for vehicles.

Mr Theodotou said the proposal has been under discussion for many years and expressed hope that Parliament will move forward with the legislation when it resumes its work.

He explained that discussions have also taken place with the Ministry of the Interior. Both the Ministry and ETEK believe that mandatory building inspections should be introduced alongside new legislation governing jointly owned buildings.

Under the proposal, management committees of apartment blocks would be required to appoint a qualified engineer to carry out periodic inspections. Following an assessment, the engineer would issue an official building inspection certificate confirming the property’s condition.

Inspections could support building renovation funding

Mr Theodotou described the inspection certificate as a vital tool for improving building safety and creating a comprehensive database of older properties across Cyprus.

Such a register would help authorities identify how many buildings were constructed before 1994, assess their current condition and determine whether maintenance or structural upgrades are required.

The information could then be used to develop targeted support measures, including government grants or European funding programmes to assist owners with renovation, strengthening works and essential repairs.

Where serious issues are identified, building owners would be able to prioritise urgent remedial works and address safety concerns before they develop into more significant structural problems.

As concerns grow over the condition of Cyprus’ ageing residential stock, the latest incident in Limassol is likely to increase pressure on policymakers to introduce a formal building MOT system aimed at improving safety standards and preventing future failures.

(Translated & summarised from an article published by the Cyprus News Agency)

Cyprus faces growing challenge from ageing buildings

Nigel Howarth
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0
Cyprus faces growing challenge from ageing buildings

Cyprus’ ageing buildings are becoming a major property and infrastructure challenge, according to Platonas Stylianou, First Vice President of ETEK and President of the European Council of Civil Engineers (ECCE).

Speaking to the Cyprus News Agency, Stylianou said recent deadly earthquakes in Venezuela highlight the importance of earthquake safety in countries at risk of seismic activity. He noted that high death tolls are often caused not only by the strength of an earthquake but also by weak or poorly maintained buildings.

Newer buildings are safer

Buildings constructed in Cyprus after 2012 offer strong earthquake protection because they were designed under mandatory European standards known as Eurocodes.

Buildings built between 1994 and 2011 also perform much better during earthquakes than those built before 1994, when modern earthquake-resistant standards were not fully in place.

Although Cyprus experiences major earthquakes only occasionally, it remains in a seismically active region. The last significant earthquake occurred in 1996, but stronger events remain possible.

Stylianou stressed the need to follow seismic regulations, carry out regular inspections and maintain buildings properly.

He added that no building can be guaranteed to remain undamaged in a major earthquake. The main goal of engineering standards is to protect lives and prevent building collapse.

Older buildings need attention

Many buildings in Cyprus were built before 1994 and do not meet modern seismic standards.

Stylianou said these properties need special attention because ageing can weaken structures over time. Factors such as corrosion, weather exposure, poor maintenance and unauthorised alterations can reduce a building’s strength.

The problem is especially serious in coastal areas, where salt and harsh environmental conditions can speed up deterioration.

“The ageing of the building stock is one of the greatest challenges Cyprus faces today,” he said.

Call for regular inspections

ETEK is calling for a national policy requiring regular building inspections, assessments and maintenance.

Priority should be given to public buildings, schools, hospitals, apartment blocks and other structures used by large numbers of people.

Stylianou said ETEK has repeatedly submitted proposals to Parliament and government ministers and has organised seminars and published guidance on the issue.

The organisation hopes new legislation will be approved soon. It argues that identifying structural problems early and carrying out timely repairs is the most effective way to protect both buildings and lives.

Drawing on international experience, Stylianou said that earthquake-related deaths are often caused by building failures rather than the earthquake itself.

He concluded that prevention, expert assessments, regular inspections and ongoing maintenance are the best ways for Cyprus to prepare for future earthquakes and protect its ageing buildings.

Cyprus revives affordable state building plots after 15 years

Nigel Howarth
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0
Cyprus revives affordable state building plots after 15 years

Affordable state-owned building plots are set to return to Cyprus for the first time in almost 15 years, marking a significant move to improve housing affordability and support aspiring homeowners.

The scheme, which was abolished in 2012, is being reintroduced through both the Ministry of the Interior and the Cyprus Land Development Organisation (KOAG). In a notable first, KOAG will offer residential land for sale rather than focusing exclusively on completed housing developments.

135 affordable plots planned across four districts

Speaking recently, KOAG Chairman Thiseas Ioannou revealed that the organisation is nearing the final stages of preparations to release affordable residential plots.

According to Mr Ioannou, KOAG is progressing with the subdivision of 135 plots located across the districts of Nicosia, Limassol, Larnaca and Paphos.

The remaining hurdle involves obtaining planning and building permits from the relevant District Local Government Organisations.

The proposed developments include:

  • 36 plots in Ypsonas, Limassol (awaiting building permits)
  • 44 plots in Kokkinotrimithia, Nicosia (awaiting building permits)
  • 31 plots in Timi, Paphos (pending planning approval)
  • 26 plots in Dromolaxia, Larnaca (pending planning approval)

Industry sources indicate that the plots will measure approximately 520 square metres each. Prices are expected to be set at around one-third of prevailing market values in the respective areas.

Eligibility is likely to follow the same criteria currently applied by KOAG under its affordable housing programmes. (Current criteria are Cypriot citizens as well as other EU nationals residing in Cyprus for the past five years will be eligible to apply provided they did not own a house in the five years before the application.)

Interior ministry preparing separate land initiative

Alongside KOAG’s plans, the Ministry of the Interior is also preparing a separate scheme involving the allocation of state-owned land through local authorities.

The proposal is currently undergoing legal review after draft legislation was submitted for technical examination.

Under the proposed framework, local authorities would identify areas where there is demand for affordable housing or opportunities to utilise state land. The Ministry would oversee the subdivision of plots before transferring responsibility for allocation and sale to local councils.

Eligibility criteria are expected to reflect the income and social requirements already used within Cyprus’ affordable housing programmes.

The sale price of the plots is expected to be linked to official valuations, with indications suggesting buyers could acquire land for around 25% of the value assessed by the Department of Lands and Surveys.

First affordable plots could be released in 2026

The first plots could potentially be allocated to eligible applicants during 2026, particularly under the KOAG programme, provided the necessary permits are issued without delay.

The Ministry of the Interior’s initiative is expected to take longer to reach implementation, as the relevant legislation remains under legal and technical review.

Nevertheless, the return of affordable state land represents one of the most significant housing policy developments in Cyprus in recent years and could provide a valuable route to homeownership for households struggling with rising property prices and limited housing supply.

Faster planning approvals boost Cyprus housing supply

Nigel Howarth
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0
Faster planning approvals boost Cyprus housing supply

Cyprus’ overhaul of its development licensing system is proving to be one of the most important reforms implemented in recent years, according to Interior Minister Constantinos Ioannou.

Speaking at the official dinner of the Cyprus Property Developers Association in Limassol on Wednesday evening, Mr Ioannou said the changes are helping to accelerate development projects while supporting the Government’s wider housing strategy.

According to the Minister, almost 3,000 residential units and around 1,000 apartment buildings have already received approval within 40 and 80 working days respectively under the new system. He said these results demonstrate the importance of the reform in reducing delays and enabling projects to move forward more efficiently.

Faster planning approvals support housing delivery

Mr Ioannou praised the Cyprus Property Developers Association for its long-standing contribution to one of the country’s most productive sectors. He noted that the land and property development industry plays a crucial role in modernising towns and communities, improving infrastructure, creating jobs, attracting strategic investment and strengthening Cyprus’s competitiveness.

He said Cyprus is currently undergoing a period of significant reform as it adapts to new economic, technological and environmental challenges. Within this changing landscape, the Government is focused on creating a modern, efficient and development-friendly regulatory framework that allows businesses to invest, innovate and grow with confidence.

The licensing reform forms a central part of this strategy. Through streamlined procedures, faster and more automated approval mechanisms, enhanced e-government services and the use of digital tools, the Government aims to reduce bureaucracy, speed up decision-making and improve services for residents, investors and businesses.

Housing supply remains a key priority

The Interior Minister reiterated that access to quality and affordable housing remains one of the most pressing challenges facing Cyprus and the wider European Union.

He said the Government is implementing a comprehensive housing policy designed to increase the supply of homes and expand housing options, particularly for younger people and young families.

In this effort, the property development sector remains an important partner. The delivery of new housing units and the faster implementation of high-quality, sustainable projects are helping the Government meet its housing objectives.

Digital transformation to improve public services

Mr Ioannou also highlighted ongoing efforts to modernise public services linked to land and property development. Reforms being introduced within the Town Planning and Land Registry departments are intended to create a more efficient, transparent and user-friendly public administration system.

The Government continues to invest in digitalisation, upgraded online services and organisational changes aimed at reducing administrative delays and improving the processing of applications. The objective, he said, is to provide faster, higher-quality and more reliable services.

The Minister stressed that Cyprus’ attractiveness as an investment destination is closely linked to the efficiency of public services and the State’s ability to approve and facilitate quality developments. The reforms currently being implemented are intended to strengthen the country’s appeal to both domestic and international investors.

He added that the Government views the private sector as a key partner in achieving national goals related to the green transition, energy-efficient buildings, smart cities, technological innovation and modern construction practices.

Mr Ioannou concluded by emphasising the importance of ongoing dialogue, institutional cooperation and a shared commitment to transparency, quality and reliability. He said a relationship of mutual trust between the State and the business community is essential to ensuring long-term stability, economic growth and sustainable development.

The Minister also expressed the Government’s appreciation to all professionals working within the property development sector for their contribution to Cyprus’ economic and social progress.

Cyprus building inspectors bill ignores developer planning violations

Nigel Howarth
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2
Cyprus building inspectors bill ignores developer planning violations

The Cyprus government’s latest draft bill introducing building inspectors has been presented as a major step towards improving oversight and preventing future planning violations. However, for many property owners, it arrives decades too late.

The proposal is a belated response to a crisis that has been allowed to grow and fester through years of regulatory failure, weak enforcement and political inaction.

While stronger inspections may help reduce future violations, the legislation does nothing to address the thousands of existing cases that continue to trap property buyers in legal and financial limbo.

Buyers continue to pay for developers’ planning violations

The most glaring weakness in the proposed legislation is its failure to tackle the imbalance at the heart of Cyprus’ planning violations scandal. Developers responsible for illegal constructions and planning breaches continue to avoid meaningful accountability, while innocent purchasers are left carrying the financial burden.

Under the current system, buyers frequently find themselves paying substantial sums to rectify planning violations they neither caused nor knew existed when purchasing their homes. Only after funding these remedial works can they begin lengthy and expensive legal proceedings in an attempt to recover their losses from developers.

This approach effectively shifts responsibility away from those who created the problem and onto those who are its victims.

Thousands of Title Deed victims still trapped

The scale of the crisis has been evident for many years. In November 2022, then Interior Minister Nicos Nouris disclosed that around 15,000 Title Deed applications remained stuck in the approval process. Many, he admitted, involved planning violations that could not be regularised, with demolition identified in some cases as the only solution.

Government efforts to resolve the backlog have produced limited results. The Urban Planning Amnesty Scheme, launched in September 2024, was promoted to regularise minor violations and unlock stalled property transfers.

Slow progress raises serious questions

Yet the Urban Planning Amnesty Scheme has highlighted the continuing dysfunction in the system. Although 2,841 applications were submitted before the programme closed, reports suggest that only around 20 per cent had been examined a year later.

Such figures inevitably raise questions about the authorities’ capacity – and perhaps their willingness – to resolve a small part of Cyprus’ long-running planning and Title Deed crisis.

Generally speaking, an amnesty is an official forgiveness for past wrongdoing, which may be given to many people at the same time, usually without payment.

However, Cyprus’ Urban Planning Amnesty Scheme requires applicants to pay reported fees ranging from roughly €300 to €3,000 to regularise planning infringements affecting their property.

This merely rubs salt into the wounds of the applicants as many of these minor planning infringements were caused by developers ignoring the rules. Once again, the victims must pay for the offences caused by the property’s developer.

Until developers face direct consequences for planning breaches and enforcement targets those responsible rather than unsuspecting buyers, new legislation risks becoming little more than another bureaucratic exercise. The symptoms may be treated, but the underlying disease remains firmly embedded within Cyprus’ property sector.

Cyprus apartment prices jump 11% as demand surges

Nigel Howarth
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0
Cyprus apartment prices jump 11% as demand surges

Apartment prices across Cyprus surged 10.8% in the first quarter of 2026, compared with the same period a year earlier, according to new figures released by the Cyprus Central Bank published earlier today.

The latest data highlights the continued strength of the island’s residential property market, driven largely by robust demand from overseas buyers, easing borrowing costs and persistently high construction expenses.

Overall, the House Price Index rose 7.5% year-on-year during the first three months of 2026. Apartment prices recorded the strongest growth, rising 10.8%, while house prices increased by a more modest 3%, indicating a slight slowdown in that segment of the market.

The figures also underline the long-term rise in property values. Compared with the Central Bank’s 2010 benchmark year, apartment prices nationwide are now 27% higher, while Limassol has recorded a striking 53% increase over the same period.

Foreign buyers continue to drive demand

The Central Bank attributed the ongoing rise in residential property prices primarily to strong demand from foreign buyers, supported to a lesser extent by domestic purchasers. Rising construction costs have also contributed to upward pressure on prices, although housing supply is gradually increasing.

On a quarterly basis, the overall House Price Index rose by 2.3% in the first quarter of 2026, slightly below the 2.4% increase recorded in the final quarter of 2025. House prices accelerated by 1.5% quarter-on-quarter, while apartment prices increased by 2.4%, although at a slower pace than previously.

District performance was mixed. Annual house price growth accelerated in Nicosia, where prices rose by 2.8%, and in Larnaca, which recorded an 8.9% increase. Growth slowed in Limassol and Paphos, where prices rose by 9.1% and 6.4% respectively. Famagusta remained broadly unchanged compared with the previous quarter.

Within the housing sector, Nicosia returned to annual growth of 1.8% after a period of declines, while Famagusta recorded a slight annual fall of 0.7%.

Apartment prices, meanwhile, accelerated only in Limassol, where values climbed by 10.7% year-on-year. Growth moderated in Larnaca, Paphos and Famagusta, while Nicosia maintained a steady annual growth rate of 3%.

Property sales and mortgage lending strengthen

Demand for property remained strong throughout the quarter. According to the Department of Lands and Surveys, the total number of sales contracts increased by 13.8% year-on-year, reaching 4,709 transactions compared with 4,137 in the first quarter of 2025.

The increase was largely driven by international buyers. Property purchases by foreign investors rose by 22.3% to 2,044 transactions, while purchases by domestic buyers increased by 8.1% to 2,665.

Limassol recorded the highest number of transactions at 1,499, followed by Nicosia with 1,065, Larnaca with 994 and Paphos with 919. Famagusta recorded the fewest transactions at 232.

Domestic buyers accounted for 84% of purchases in Nicosia, while local purchasers represented around 60% of buyers in both Limassol and Famagusta. In Larnaca, domestic and foreign demand was broadly balanced, whereas overseas buyers dominated the Paphos market, accounting for 75% of transactions.

Mortgage activity also continued to strengthen. The Central Bank reported that lending to households for home purchases maintained a strong upward trend during the first quarter.

Net new mortgage lending increased by 24.5% year-on-year, reaching €353.6 million, compared with €284.1 million during the same period in 2025.

The weighted average mortgage interest rate fell to 3.15% in March 2026, down from 3.53% a year earlier. The decline reflects the gradual easing of monetary policy by the European Central Bank since mid-2024 and has helped support housing demand.

The Central Bank’s April 2026 Bank Lending Survey also showed rising demand for housing loans during the quarter, while lending criteria remained unchanged at relatively strict levels. Banks expect mortgage demand to remain stable during the second quarter of 2026, although lending standards could tighten further.

Housing supply expands but cost pressures remain

On the supply side, there are signs that new housing stock is gradually entering the market.

According to the Cyprus Statistical Service, the number of residential units granted building permits rose by 79.2% year-on-year during the first two months of 2026, increasing from 1,932 units to 3,463 units.

The Central Bank believes this trend will support a gradual increase in housing supply over the medium term. Survey data from the European Commission also points to continued expansion in construction activity, with the sector remaining in positive territory for a tenth consecutive quarter.

However, cost pressures remain significant. Construction material prices increased by 0.9% year-on-year in the first quarter, remaining close to historic highs due to ongoing geopolitical disruptions and supply chain challenges.

Looking ahead, market sentiment suggests further price growth may be on the horizon. The European Commission’s property price expectations indicator rose to 32.8 in the first quarter of 2026, up from 24.6 a year earlier, indicating that a growing number of market participants expect residential property prices in Cyprus to continue rising in the coming months.

Labour shortages within the construction sector are also contributing to upward pressure on prices. The Central Bank noted that wage growth in the industry remains elevated compared with pre-pandemic levels, adding further costs for developers and builders.

Despite a gradual increase in housing supply, strong foreign demand, improving mortgage conditions and persistent construction pressures continue to underpin the upward trajectory of Cyprus’s residential property market.

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