Cyprus MPs’ last push to halt property foreclosures

Nigel Howarth
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Cyprus MPs’ last push to halt property foreclosures

House of Representatives is preparing a last-ditch effort to suspend mass property foreclosures before it dissolves in mid-April, as pressure mounts over what MPs describe as serious legislative gaps leaving borrowers exposed.

The issue is scheduled for discussion at the Parliamentary Finance Committee on 9 March, where Finance Minister Makis Keravnos is expected to present the government’s position. The Governor of the Central Bank of Cyprus, Christodoulos Patsalides, has also been invited to attend.

Around 30 bills under review

Approximately 30 legislative proposals are currently before the Finance Committee. Central among them is the restoration of borrowers’ right to seek recourse through the courts before their property is repossessed.

Other proposals aim to curb excessive loan inflation by halting the accrual of interest once a loan balance reaches double its original principal.

Further draft bills are expected to be tabled in the coming days before the plenary session.

Alarm raised over “pogrom” of foreclosures

MPs backing the proposals argue that weaknesses in the existing legal framework have left borrowers without adequate protection, particularly regarding access to judicial review.

Aristos Damianou, MP for AKEL, described the current situation as a “pogrom” of foreclosures, claiming that thousands of people risk losing their homes and small businesses.

“There are no meaningful safeguards on the properties being auctioned,” he said, stressing the urgent need to restore uninterrupted access to justice. “We are tired of watching the rule of law being undermined,” he added, calling for legislative reform to protect future generations.

A joint bill co-signed by AKEL and the Greens seeks to guarantee borrowers the right to apply to court for a suspension of foreclosure proceedings on their primary residence, particularly in cases involving unlawful charges or abusive contractual terms by banks.

Loan portfolio under management stands at €18.5bn

Greens MP Stavros Papadouris revealed that vulture funds had initially acquired loans worth €5.7 billion from a total portfolio of €16 billion, noting that “Today, with accumulated interest and charges, their outstanding portfolio stands at €18.5 billion.”

Papadouris also highlighted stark contrasts in judicial timelines. In other jurisdictions, court rulings are typically issued within six months, he said. In Cyprus, however, while auctions proceed within six to nine months, court decisions can take up to nine years.

“In the meantime, properties are repossessed and borrowers remain effectively unprotected,” he warned, adding that even when borrowers win their cases, they are entitled only to compensation; not the return of their homes.

He further criticised delays in the implementation of a special court jurisdiction approved by Parliament in 2023, as well as persistent backlogs in the judicial system.

Citing data from the Financial Ombudsman, Papadouris said that 55% of auctions involving primary residences concerned properties valued below €350,000.

Legislative window closing

With dissolution looming, the House faces what Papadouris described as a final opportunity to address the foreclosure framework. Lawmakers argue that unless swift action is taken, the existing legislative vacuum will continue to leave thousands of homeowners vulnerable.

As the political clock ticks down, the coming weeks may prove decisive for Cyprus’ property market – and for borrowers fighting to retain their homes.

Land Registry audit reveals long-standing failures

Nigel Howarth
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Land Registry audit reveals long-standing failures

A damning report by the Audit Office has laid bare long-standing failures within the Department of Lands and Surveys, revealing chronic weaknesses in state land management, revenue collection and the processing of citizens’ applications.

The Special Report, focusing primarily on 2021–2023 but extending to earlier years, highlights decades-old backlogs, mounting unpaid debts and serious administrative delays across the core functions of the land registry.

Uncollected revenues

As of 31 December 2024, unpaid revenues at the Department stood at €18.5 million, up from €15.5 million in 2023; an increase of approximately €3 million, or 20%, in just one year.

Of the total amount, €13.6 million (74%) relates to rents from state land leases. The remainder largely concerns sums owed to the State in connection with urban planning projects undertaken by municipalities and communities.

Annual collection rates remain at just 67%. Against expected annual lease income of approximately €4.2 million, actual receipts averaged around €2.8 million over the past two years. Uncollected sums now equate to more than three years’ anticipated revenue.

The Auditor General warns that delays in initiating legal action and enforcing contractual terms are contributing to debt accumulation and increasing the risk of permanent revenue loss.

Debts concentrated in Nicosia

Particular concern arises from the concentration of 70% of unpaid rents (around €2.6 million) among just ten tenants in the Nicosia District Lands Office. One tenant alone reportedly owes approximately €600,000.

Among the debtors is the former semi-governmental Cyprus Tourism Organisation, which, prior to its integration into the Deputy Ministry of Tourism, owed €272,868 to the Land Registry. Efforts are reportedly under way to write off this debt.

In another case, a private individual requested termination of a lease agreement in 2017, yet the contract remains active, with arrears continuing to accumulate and inflate receivables.

Additionally, outstanding contributions from Local Authorities towards compulsory acquisitions for urban planning projects totalled €4.6 million as of year-end 2024.

Pending applications for state land leases

By April 2025, 7,769 applications for leasing state land were pending — some dating back to 1980.

The average examination period exceeds eight years. In Nicosia, the mean completion time stands at 98.4 months (approximately eight years), significantly exceeding the 12 – 18 month timeframe stipulated in the Citizens’ Charter.

As of December 2025, there were 2,764 active lease agreements covering 24,100 donums of land. However, the Department has yet to fully record all state land available for lease, limiting strategic planning capacity and transparency.

Meanwhile, 1,127 cases of illegal interventions on state land were pending as of 31 December 2024, with some delays exceeding 15 years. The recording process has not been completed across all free areas of Cyprus, suggesting the true figure may be higher.

Forced sale cases pending for half a century

Pending applications for Forced Sales and Sales of Undistributed Property totalled 9,146 at the end of 2024, with some cases remaining open since 1973.

In a sample of 12 files reviewed, time spent within the Valuations Division ranged from eight to 91 months. The period from application submission to auction ranged between 18 and 140 months — more than 11.5 years in extreme cases.

In 11 compulsory acquisition cases examined between 2022 and 2024, the average time a file remained with the Valuations Division for assessment reached 97 months (over eight years), with extreme cases of 206 and 208 months – exceeding 17 years.

Surveying applications & boundary disputes

Outstanding surveying applications stood at 24,968 as of 31 October 2023. Approximately 15,000 applications are submitted annually, while around 13,000 are processed.

The average completion time is 17 months, although extreme cases reached 195 months — over 16 years. The use of private licensed surveyors without a clear timeframe framework has resulted in files remaining in their possession for more than 16 years in certain instances.

In boundary dispute cases, the average duration from submission to written notification of the decision is 125 months — approximately ten years. In several instances, on-site inspections were conducted six to ten years after application, with final decisions communicated up to 15 years after completion of the surveying work.

Structural Land Registry failures

The overall picture painted by the Report is one of entrenched structural inefficiencies rather than isolated administrative lapses. Decades-old backlogs, escalating unpaid revenues, weak monitoring mechanisms and prolonged procedural delays collectively undermine public finances and erode citizens’ rights.

For a country whose property market remains a cornerstone of economic activity, the findings raise serious questions about governance, transparency and institutional capacity within Cyprus’ land administration framework.

Syllouris & Giovani acquitted in ‘Golden Passports’ Case

Nigel Howarth
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Syllouris & Giovani acquitted in ‘Golden Passports’ Case

The acquittal of Demetris Syllouris and Christakis Giovani marks the conclusion of one of the most high-profile criminal cases in recent years; a case closely linked to the disgraced “Golden Passports” scheme and the investigative revelations of Al Jazeera.

The Permanent Criminal Court of Nicosia delivered its majority decision in a ruling spanning 170 pages, portions of which were read aloud in open court by the presiding judge.

At the outset of proceedings, both defendants remained composed and expressionless. The courtroom was filled to capacity with relatives and members of the press, reflecting the considerable political and institutional impact of a case that has shaped public discourse and investor sentiment alike.

Corruption charges not proven

The Court announced that the charge of corruption had not been proven against either defendant. Minutes earlier, it had ruled that Syllouris had not acted with corrupt intent, meaning the primary count could not be sustained.

The bench further noted that key witnesses had not been called to testify, without sufficient explanation from the prosecution regarding their absence.

It was also found that no evidence substantiated claims that a former minister had been pressured or improperly influenced by the defendants in relation to the advancement of naturalisation applications before the Council of Ministers.

Particular reference was made to testimony from a senior official at the Ministry of the Interior responsible for citizenship applications. The witness stated she was fully familiar with the procedure, although the volume of applications prevented her from recalling specific details.

She confirmed receiving telephone calls from the then Speaker of the House requesting updates on the progress of applications, as well as communicating with Syllouris’ secretary – conduct the Court did not consider improper.

Messages and reference to Pittadjis

The Court observed that messages allegedly exchanged between Andreas Pittadjis and an investor-witness were not submitted into evidence.

Extensive reference was also made to Pittadjis, against whom charges had been withdrawn at an earlier stage, and to the procedural history that led to the suspension of proceedings in his case.

Earlier in the hearing, the bench explained its decision not to call Syllouris’ secretary as a witness, concluding that she would not have constituted a reliable source of testimony.

The two former officials had faced, among other allegations, offences including trading in influence, breaches of relevant provisions of a European convention, and conspiracy to commit fraud under the Criminal Code.

The Court clarified that although the reporting by Al Jazeera served as the catalyst for the investigation into the Cyprus Investment Programme (aka ‘Golden Passports‘ scheme) and the subsequent criminal proceedings, the related video footage was not submitted as evidence and was not relied upon as testimonial material. The charges were not founded on the audio-visual content that had been published.

Summaries of the closing submissions by both the prosecution and defence, which had lasted three days, were also read in court.

Questions remain

The case has ended with the acquittal of the two former officials with the Court reiterating the fundamental principles of criminal procedure, namely that the burden of proof lies with the prosecution and that any doubt operates in favour of the defendant.

However, the case has had a profound effect on the Government and the legal system. The “golden passports” scandal damaged Cyprus’ image abroad and sparked a broader debate on transparency, accountability and corruption in high office.

Although the accused have been acquitted of all charges, the ruling is likely to spark intense public debate, and prompt strong criticism over its broader implications.
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Larnaca port and marina: the next steps

Nigel Howarth
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Larnaca port and marina: the next steps

The future of the port and marina in Larnaca is moving into a new phase, as government officials review development proposals that could reshape the town’s waterfront and property market.

The Minister of Transport, Communications and Works, Alexis Vafeades, has described the outcome of the recent study as “substantial and meaningful”. The study was prepared by Growthfund in cooperation with Dutch experts.

According to the minister, the proposals are clear and practical, giving local stakeholders a solid basis for discussion before final decisions are made.

Speaking to StockWatch, Mr Vafeades said the government is satisfied with the work presented so far. He explained that once the preferred development option is selected, detailed costings will follow.

A key meeting is scheduled with the Mayor of Larnaca and other local officials. The aim is to review the recommendations and agree on a common direction. Only after a final option is chosen will Growthfund return with a full financial breakdown.

For property investors and developers, this means clarity on the masterplan will come before figures are confirmed.

Responding to concerns that the process may be taking too long, the minister stressed that timing will play an important role in the final decision. However, he noted that decisions must be taken carefully, as the project will shape not only the short term, but the long-term future of Larnaca.

He also confirmed that the government remains committed to transparency and joint decision-making with local authorities.

Angelos Hadjicharalambous, President of the Larnaca District Local Government Organisation (EOA), said the main priority is to finally deliver the project.

He pointed out that delays have had both financial consequences and a wider impact on the town’s development prospects. The business community and residents are now waiting for full details in order to assess which option would support the most balanced and sustainable growth.

Larnaca port & marina proposal

One proposal under discussion is to separate the marina and port developments. Local officials say this does not raise concerns, provided the final investment plan is right for the city.

There is clear support for tourism-led growth, including:

  • A hotel development
  • Tourist apartments
  • Cruise tourism facilities

However, officials stress that all elements must fit with the character and long-term vision of Larnaca.

Importantly, the consultants have not ruled out any specific use for the port. This includes potential commercial activity; an issue linked to Cyprus’ obligations under the management agreement for the Port of Limassol.

For investors, this flexibility could widen development opportunities, depending on how the final framework is structured.

Buying property in Cyprus, a familiar tale of woe

Rebekah Gregoriades
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Buying property in Cyprus, a familiar tale of woe

Title deeds remain unissued and stubborn tenants cannot be budged

Purchasing property in Cyprus could very well qualify as an extreme sport.

The property pages of newspapers may well be full of reports proclaiming 2025 as being the strongest year for property sales since 2007, with ever pricey Limassol leading the charge and Paphos a close second.

But behind the glitzy statistics of spiralling high-end property sales to rich foreigners lie the old tales of woe of people being swindled, misled and sold false expectations by developers and lawyers, and buyers turning to the state for guidance only to experience a cold brick wall.

For many, venturing down the dark alley of purchasing property in Cyprus has turned into a living nightmare, be it elusive title deeds, missing permits, disappearing developers or arrogant tenants who refuse to budge. Recent legislative changes have helped but not solved the problem.

Title deed marathon

Jayne Richards’ parents purchased in full a residential property in Cyprus on November 30, 1992.

“They took possession immediately and the property has been occupied peacefully and continuously ever since,” Jayne told the Cyprus Mail.

Thirty-three years and €46,000 in legal fees later, they still do not have title deeds to the property.

They were amongst the thousands of people who had paid for their properties in full but had not been issued with their title deeds because the developers had mortgages on the properties. Since developers’ land and buildings are counted as assets that need to be offset against their debt to banks, this gave banks a claim on properties that had been mortgaged by developers.

“More than 33 years later, no separate title deeds have ever been issued to them.”

The family made “repeated attempts to resolve the situation through Cypriot lawyers”.

“In total, more than £40,000 was spent on legal fees […] we also paid property taxes and charges that would ordinarily have been payable by the developer, in an effort to regularise the position. Despite this, nothing was resolved and no court proceedings were ever brought to determine the matter,” Jayne explained.

“In recent years, correspondence from the developer’s side has claimed that the original contract of sale has effectively converted into a lease and has demanded a substantial sum described as ‘compensation’. There has been no court judgement confirming this position.”

Recent photo of Jayne Richards’ parents’ property in Cyprus
Photo credit Cyprus Mail: Recent photo of Jayne Richards’ parents’ property

In the meantime, “the situation has become particularly distressing because one of the purchasers, my father, now lacks capacity due to Alzheimer’s disease.”

“The ongoing uncertainty over the family home has placed significant emotional and financial strain on us,” she added.

Aware of the long-standing trapped buyer problem in Cyprus and recent legislation aimed at protecting buyers who paid for their property but never received title deeds, Jayne contacted the Department of Lands and Surveys, which is now examining the case.

“I am not seeking special treatment or to assign personal blame. I am simply asking for the current law to be applied fairly, so that families like mine can finally obtain legal certainty and the title deeds to homes they have lived in for decades.”

Title deeds, though, are not the only problem.

Living for free

Andrew Georgiou is of Cypriot descent and lives abroad. He owns property in Cyprus as part of plans for his retirement. In the meantime, he is renting the apartment out to someone who has not paid a single penny in rent for four years.

“We have a tenant in our apartment in Cyprus who has not paid rent for four years and has no contract. We have been trying to evict them now for four years using two different solicitors,” Andrew told the Cyprus Mail.

The case has gone to court “at least eight times” and each time the trial gets postponed.

“I do not understand the Cypriot law, but surely this can’t be correct: someone living in our potential retirement home for free,” he said.

Finding no help or solution, Andrew hopes making his story public will move things forward.

“I am proud of my Cypriot heritage and should be allowed to retire peacefully in my property.”

Like the trapped buyers, there is – in theory – legislation to help frustrated landlords like Andrew.

A decree was passed in 2023 concerning the tenancy law for buildings built before December 21, 1999. Tenants who began renting a property before that date have now become institutional or sitting tenants. Under this decree, landlords can increase the rent by up to 6 per cent for the next two years and the tenant is obliged to pay it.

A tenant can continue occupying the property as long as he pays the rent. Eviction procedures have also supposedly become faster and simpler with a law passed in 2020. If a tenant has not paid the rent for 21 days, the landlord can initiate an eviction process. If the tenant refuses to leave, then the case is settled in court – which inevitably is where everything gets mired in delays, postponements and other legal clutter.

And, in any case, property owners have complained that even if tenant is paying the rent on time, landlords are unable to use said property in any other way they see fit, as the now sitting tenant can remain there indefinitely by law. In essence, they are trapped landlords.

The Cyprus property purchased by Jayne Richards’ parents in 1992
Photo credit Cyprus Mail: The property purchased by Jayne Richards’ parents in 1992

For properties built after 2000, the contracts law applies. The owner and the tenant sign a contract and agree on the obligations and rights of each party. Once the contract expires, the landlord can impose any increase he wishes. In case of a disagreement, this is settled in court – with all that entails – and the owner can request the eviction of the tenant.

Needless to say, Andrew has not been successful with the implementation of the law.

He is not the only one.

Stelios Antoniou, a Cypriot residing permanently on the island, has been having similar problems with land he owns in an industrial area.

He had built a warehouse on part of the land and is renting it out. However, the tenant has practically taken over a large part of the land not in the contract and is using it to park old, immobilised cars he collects.

Stelios, who wants to develop the part of the land not rented out, is having a hard time getting his tenant to remove the cars from his property.

Frustration grew when he sought legal advice, as he was told he would get nowhere in court any time soon as procedures could take ages and he was not allowed to remove the vehicles himself. In the best case he could sue the tenant for lost income as he is unable to use his own land. If, of course, the case was actually tried.

“What am I supposed to do?” he asked.

CM

Cyprus building permits rise in number, size and value

Nigel Howarth
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Cyprus building permits rise in number, size and value

Building activity in Cyprus surged during the first ten months of 2025, with more building permits authorised and larger, higher-value projects approved by the District Local Government Organisations (DLGOs)

According to the latest figures from the Statistical Service, construction activity across the island increased noticeably between January and October 2025.

More building permits issued

In October 2025 alone, a total of 855 building permits were issued.

For the January–October period, the total number of permits reached 6,490, compared with 5,955 during the same period in 2024. This represents a 9.0% annual increase, pointing to growing activity in the construction and property sectors.

Strong growth in project size and value

The total floor area of approved projects reached 2,611,972 square metres, up 30.7% from 1,998,088 square metres in the corresponding period of 2024.

At the same time, the total value of these projects rose to €3.214 billion, marking a 27.7% increase compared with €2.516 billion last year.

Residential buildings lead the way

Growth was mainly driven by residential developments:

  • Number of residential permits: +19.4%
  • Total residential floor area: +35.3%
  • Residential project value: +31.5%

Non-residential buildings recorded a 29.1% drop in the number of permits. However, their total floor area increased by 10.9%, and their value rose by 22.9%.

Civil engineering projects showed mixed results. Permit numbers increased by 12.7%, and total area jumped by 51.6%, but overall value fell by 6.3%.

Plot division permits rose by 13.2% in number, although their value declined by 13.8%. Road construction permits fell sharply, down 42.4% in number and 39.9% in value, possibly reflecting delays or limits in infrastructure projects.

Building permits for new homes hit 15 year high

Building permits issued during the period are expected to result in 12,770 new residential units, 33.1% higher than the 9,591 units recorded in the same period of 2024 and marks the highest January–October total since 2009.

Analysis of building permits for new housing units

  • Detached houses: 3,072 units (+30.7%)
  • Semi-detached houses: 949 units (+34.6%)
  • Apartment buildings: 8,519 units (+43.0%)
  • Mixed-use residential buildings: 230 units (-60.2%)

The sharp rise in apartment developments highlights continued demand for higher-density housing, particularly in urban areas.

Nicosia and Limassol lead in floor area

Significant increases in floor area were recorded in four of the five districts:

  • Nicosia: 870,300 sqm. (+45.0%)
  • Limassol: 903,300 sqm. (+35.4%)
  • Larnaca: 483,800 sqm. (+31.7%)
  • Paphos: 232,800 sqm. (+6.1%)
  • Famagusta: 121,800 sqm. (-15.1%)

Larnaca recorded the strongest five-year growth compared with 2019, with a 79.1% increase in approved floor area, followed by Nicosia at +66.5%.

By contrast, five-year declines were recorded in Famagusta (-5.3%) and Limassol (-4.8%), while Paphos saw a modest rise of 1.6%.

Overall, the data confirms a strong year for Cyprus property and construction, with residential development driving growth and new housing units reaching a 15-year high.

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