Call for law to regulate Cyprus property developers

Nigel Howarth
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Call for law to regulate Cyprus property developers

Philelephtheros reports that the Cyprus Land and Property Developers Association is calling for the formal recognition and regulation of the profession, having already submitted a detailed proposal to the Ministry of the Interior.

According to the Association, which represents about 80% of the market through its 50 member companies, the initiative aims to enhance transparency, safeguard buyers’ interests, and strengthen trust in the real estate sector. The move would, for the first time, create a structured and supervised framework for property development in Cyprus.

In the preparation of the proposed law, the Scientific and Technical Chamber of Cyprus (ETEK) and legal advisors also took part, reflecting a broad-based approach to professional regulation.

Establishing professional standards

The Association argues that institutionalising the Land Development Professional role is essential for promoting transparency, accountability, and professional integrity within the property development industry.

If implemented, the framework will clearly define the qualifications, standards, and conditions required to practise lawfully in the field.

Council to oversee developers’ registration

The proposal includes the establishment of a “Council for the Registration and Supervision of Land and Building Development Professionals”, which would oversee professional standards and compliance.

The Council will be chaired by a suitably qualified public service representative with relevant expertise and will be responsible for enforcing regulations, maintaining professional integrity, and ensuring market accountability.

Key criteria for registering licensed developers

The proposed law introduces clear eligibility criteria for registration on the official Register of Development Professionals. Only individuals or companies meeting these standards will be allowed to operate legally.

According to the Association, this framework will:

  • Improve the quality of development services
  • Ensure professional responsibility
  • Protect buyers’ interests
  • Foster trust and confidence in the property market

Interior Minister supports the developers’ initiative

During a May 2025 meeting with Interior Minister Konstantinos Ioannou, the Association noted a positive response to the proposal.

The Minister expressed support and established a special working group, involving officials from the Department of Lands and Surveys and members of the Developers Association, to refine the legal text.

What changes under the new framework?

At present, there is no specific law determining who may act as a land or property developer in Cyprus. This means that any person or company can engage in real estate development and sales, regardless of qualifications or experience.

The proposed legislation seeks to close this gap by requiring formal registration. Once enacted, only approved and registered professionals will be authorised to conduct land or property development activities.

The law will also prohibit unregistered persons from using the title “Land Development Professional” or performing related work.

Benefits for the state, market, and property buyers

The reform will offer substantial advantages for both the state and citizens. For government authorities, it will establish a clear legal framework for transparency, control, and accountability in a sector vital to the Cypriot economy.

For citizens, particularly homebuyers, it promises greater security and confidence, ensuring that every developer they work with is qualified, registered, and subject to professional oversight.

Key requirements for registration

To be listed in the official Register, applicants must:

  • Operate (or plan to operate) a properly staffed and equipped office
  • Collaborate with an ETEK-registered design and supervision firm
  • Employ a qualified civil engineer, architect, or property valuer
  • Engage a certified auditor and an experienced property sales consultant
  • Demonstrate proven experience in property development

Those without prior experience may register as “trainee development professionals” for a period of up to three years.

Significant change for the industry

The change will be transformative. Registration will become a legal requirement, not a formality. Unregistered individuals will no longer be allowed to promote, develop, or sell properties for commercial gain.

It’s worth noting that this law will not affect construction contractors, who are governed by separate regulations and maintain their own registry.

The proposal is currently under review by the working group established by the Ministry of the Interior, aiming to deliver a law that reflects both industry needs and market realities.

Cypriots & EU citizens may apply for affordable housing in Cyprus

Nigel Howarth
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Cypriots & EU citizens may apply for affordable housing in Cyprus

The Cyprus Land Development Corporation (CLDC) has announced the opening of applications for participation in its Affordable Housing Management Scheme, which is currently being implemented in the districts of Nicosia, Limassol and Larnaca.

The application period began on 1 October 2025 and will end on 30 November 2025. Through this scheme, interested individuals can register in the Affordable Housing Beneficiaries Register, allowing them to apply in the future for the purchase of residential units developed under the Special Housing Incentive Programme for land development companies.

The purchase price of affordable housing units has been set by the CLDC, acting as the Affordable Housing Management Authority, at €1,650 per buildable square metre.

Affordable housing eligibility criteria

Applications are open to Cypriot citizens and EU nationals who have been permanent and continuous residents of Cyprus for at least five years prior to the date of application.

Applicants (and/or their spouse or partner) must not have owned another residence suitable for their family’s housing needs within the last five years.

Income criteria

The gross annual household income for the tax year preceding the application must not exceed the following limits:

  • Single applicants: €25,000
  • Couples without children or single-parent families: €45,000
  • Three-member families: €50,000
  • Four-member families: €55,000
  • Families with five or more members: €65,000

Financial requirements

Applicants must demonstrate sufficient financial capacity to pay a 20% deposit on the property’s value and secure a bank loan for the remaining 80% of the purchase price.

Beneficiary obligations

Beneficiaries included in the Register who purchase a residential unit through the scheme must retain ownership for at least ten years and use it as their primary residence during this period. The sale of the property within this timeframe is prohibited.

Furthermore, beneficiaries cannot reapply or benefit again from this or any future revised version of the scheme.

For more information and detailed application instructions, interested parties can visit the official CLDC website at www.cldc.org.cy.

Cyprus property prices rise despite slower growth outlook

Nigel Howarth
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0
Cyprus property prices rise despite slower growth outlook

Cyprus property prices continued to climb during the second quarter of 2025, with the Central Bank of Cyprus’ House Price Index (HPI) rising 1.5% compared with the previous quarter and by 4.7% year-on-year.

The growth was mainly driven by higher apartment prices, while house prices remained mostly stable.

Over the same period, the number of property sales rose by 16.1%, mortgage lending increased by 22.2%, and home loan interest rates fell to 3.85%, offering some relief to buyers and property developers.

Property market overview

During Q2 2025, the combined House Price Index for both houses and apartments rose 1.5% quarter-on-quarter, following a 1.9% rise in Q1.

The increase stemmed primarily from a 3.1% jump in apartment prices, while house prices slipped slightly by 0.1%.

Annually, the index rose 4.7%, slightly below the 4.8% recorded in the first quarter. Apartment prices grew 5.3% year-on-year, while house prices increased 3.4%. The general index stood at 101.1 points (base year: Q1 2010 = 100).

Regional trends

Only Limassol recorded a faster price increase, with an annual rise of 6.8%. Price growth slowed elsewhere: Nicosia (0.1%), Larnaca (5.8%), Paphos (9.4%), and Famagusta (4.9%).

For houses, prices slowed in all districts except Nicosia, where they fell 1.6% for the third consecutive quarter. Elsewhere, prices increased 6% in Limassol, 4.2% in Larnaca, 9.8% in Paphos, and 5.7% in Famagusta.

For apartments, annual growth accelerated in Limassol (4.8%) and Larnaca (8.2%), but eased in Nicosia (2.6%), Paphos (8%), and Famagusta (4.5%).

Rising demand in the property market

According to data from the Department of Lands and Surveys, demand for property surged in Q2, with 4,592 sale contracts registered in Q2 2025, a 16.1% increase from 3,956 a year earlier.

Domestic purchases rose 15.1% (2,875 vs 2,498), while foreign purchases increased 17.8% (1,717 vs 1,458).

Limassol led with 1,430 transactions, followed by Nicosia (1,078), Larnaca (1,038), Paphos (824), and Famagusta (222).

Domestic buyers accounted for over 50% of transactions in all districts except Paphos, where foreign buyers held a 60% share.

Lending and interest rates

According to Central Bank of Cyprus monetary and financial statistics, new lending volumes increased by 22.2% year-on-year, reaching €353.5 million in Q2 2025, up from €289.3 million the previous year.

The average mortgage rate fell to 3.85% from 4.58%, partially supporting both demand and supply growth.

The Bank Lending Survey (July 2025) reported stronger interest in borrowing, while lending criteria remained unchanged from the previous quarter.

Housing supply and construction

Data from the Cyprus Statistical Service indicated a rise in construction activity, with building permits for housing units up 12.1% between January–April 2025 compared to the same period in 2024 (4,321 vs 3,854 units).

The European Commission’s Economic Sentiment Survey (June 2025) showed a positive dispersion index for construction activity (+4%) for the seventh consecutive quarter, signalling sustained optimism in the sector.

Meanwhile, the construction materials price index recorded a mild annual increase of 1.4% in Q2 2025, remaining elevated due to geopolitical tensions and supply chain disruptions.

Market expectations

The European Commission’s Property Price Expectations Index (June 2025) fell sharply to 22.2 points from 62.8 a year earlier, suggesting fewer participants expect further price increases in the near term.

Overall, Q2 2025 data indicate that Cyprus’ housing market maintained its upward momentum, with differences by property type and region.

Demand strengthened from both local and foreign buyers, while supply is gradually increasing. Lower interest rates and stronger mortgage lending continue to support market activity, even as price growth expectations show signs of slowing.

Building permits plummet

Nigel Howarth
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Building permits plummet

The Cyprus construction sector experienced a sharp downturn in activity in June 2025, as well as across the first half of the year, with the number of building permits authorised falling significantly, according to data released by the Statistical Service.

Compared with June 2024, the number of building permits issued dropped by nearly 60%, while key indicators such as total project value and area also recorded significant declines.

Building permits collapsed in June

In June 2025, a total of 635 building permits were issued, compared with 1,528 in June of the previous year: a fall of 58.4%.

The total value of these permits reached €275.1 million, while the overall area amounted to 236,664 square metres.

These permits provided for the construction of 1,132 residential units.

Six-month decline in building permits approaching 30%

Between January and June 2025, 3,399 building permits were issued, a 28.9% decline compared with 4,782 in the same period of 2024.

The total value of projects reached €1.73 billion, down 15.2%, while their combined area reached 1,426,297 square metres, a 12.4% drop.

The number of permits approved for residential units also fell by 13.1%, from 7,616 in the first half of 2024 to 6,616 in 2025.

Breakdown by project category

Permits authorised for residential buildings fell 19.8%, from 3,171 to 2,543. Non-residential building permits dropped 56.4%, while civil engineering projects declined 31.9%. Permits for land divisions fell 23.9%, and road construction permits plummeted 70.4%.

Drop in building permits project value & area

The total area of permits authorised for residential buildings decreased 9.0%, and non-residential areas dropped 24.3%, while civil engineering projects saw a marginal decline of 3.3% in area.

In terms of value, residential buildings amounted to €1.33 billion (down 10.9%), while non-residential buildings totalled €318 million (down 20.4%).

Civil engineering projects saw a sharp 40.9% fall in value, with land divisions and road works down 45.6% and 71.8%, respectively.

Residential units: stability in houses, decline in apartments

Of the 1,132 residential units for which building permits were issued in June, 320 were for detached houses, a figure that remained almost unchanged year-on-year (+0.2%).

In contrast, semi-detached houses dropped 7.4%, residential apartment blocks 12.5%, and mixed-use buildings an alarming 68.5%.

Regional breakdown: Limassol the only gainer

From January to June 2025, the largest decline in total authorised building area was recorded in Larnaca (-36.2%), followed by Paphos (-32.7%), Famagusta (-21.7%), and Nicosia (-11.8%).

Limassol was the only district to record growth, with a 13.7% increase in area.

Compared with 2019, the total authorised area across Cyprus has actually risen 24.4%. The strongest positive change was in Famagusta (+107.4%), followed by Nicosia (+52.3%) and Limassol (+11.9%). Larnaca saw a modest +7.5% increase, while Paphos showed a slight -1.9% decline.

The role of “Ippodamos” and local government reform

Since 1 July 2024, the responsibility for issuing building permits has been transferred to the District Local Government Organisations (DLGOs), with all applications processed through the “Ippodamos” integrated information system.

Although this reform aimed to streamline management and improve efficiency, the initial stages were marked by teething problems and procedural delays, affecting both permit issuance and the collection of statistical data.

The Statistical Service continues to work closely with the DLGOs and the relevant ministries to ensure smooth data flow and reliable production of statistics.

Cyprus’ priciest property sales of summer 2025

Nigel Howarth
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Cyprus’ priciest property sales of summer 2025

The 100 most expensive property sales completed across Cyprus in July and August 2025 totalled €201.4 million, keeping the market active and vibrant, according to Ask Wire, a company that uses advanced technology to monitor transactions, asking prices, and construction activity across the real estate sector.

Ask Wire has published data on the highest-value property transactions completed in July and August 2025, including the top ten sales per district.

Top 10 most expensive property sales in July

According to the company’s press release, the ten priciest property sales in Cyprus during July 2025 amounted to €31.95 million, with the top sale being a building in the Katholiki area of Limassol, sold for €9 million.

Among the ten most expensive properties:

  • Limassol recorded four transactions,
  • Nicosia and Famagusta had two each,
  • Larnaca and Paphos recorded one sale each.

The 50 most expensive property transactions of July (ten per district) reached a combined €72.8 million.

Limassol dominated, securing the top three deals and accounting for 34.4% of the total value of the 50 priciest sales. Nicosia followed with 23.1%, Paphos with 16.2%, Famagusta with 15.6%, and Larnaca with 10.6%. In absolute figures:

  • Limassol: €25 million
  • Nicosia: €16.8 million
  • Paphos: €11.8 million
  • Famagusta: €11.4 million
  • Larnaca: €7.75 million
No Property Type Sale Price District / Municipality – Community
1 Building €9 million Limassol / Katholiki
2 Offices €4 million Limassol / Ayia Napa
3 Land €2.8 million Limassol / Agios Tychonas
4 Land €2.76 million Famagusta / Paralimni
5 Land €2.75 million Kato Paphos
6 House €2.2 million Limassol / Mesa Geitonia
7 Land €2.2 million Famagusta / Paralimni
8 Apartment €2.15 million Nicosia / Agios Andreas
9 Apartment €2.15 million Nicosia / Agioi Omologites
10 Land €1.95 million Larnaca / Livadia

Source: Department of Lands and Surveys, Analysis: Ask Wire

The 10 most expensive property sales in August

In August 2025, the ten priciest sales nationwide totalled €83.5 million, with the most expensive being office premises in Limassol’s Tsiflikoudia area, sold for €58 million, one of the most expensive property transactions of the year.

Among the top ten:

  • Limassol led again with five deals,
  • Famagusta followed with three,
  • Larnaca and Paphos with one each.

The 50 biggest August transactions (ten per district) were worth €128.6 million in total.

Limassol once again dominated, with its top ten deals representing a massive 61% of the total value of August’s 50 most expensive sales. Famagusta surprised the market with €17.3 million, accounting for 13.5% of the total. Larnaca followed with 12.5%, Paphos with 8.2%, and Nicosia with just 4.8%.

No Property Type Sale Price District / Municipality – Community
1 Offices €58 million Limassol / Tsiflikoudia
2 Plot €4.3 million Larnaca / Skala
3 Plot €3 million Limassol / Katholiki
4 House €2.97 million Famagusta / Ayia Napa
5 House €2.7 million Famagusta / Paralimni
6 Plot €2.66 million Limassol / Katholiki
7 Field €2.6 million Paphos / Konia
8 House €2.5 million Limassol / Asomatos
9 House €2.4 million Famagusta / Paralimni
10 Apartment €2.3 million Limassol / Mouttagiaka

Source: Department of Lands and Surveys, Analysis: Ask Wire

Market insights from Ask Wire’s CEO

Ask Wire CEO Pavlos Loizou highlighted that July was a unique month in their analysis, as all districts of Cyprus were represented among the top ten high-value sales, a rare occurrence that indicates a broader spread of luxury property demand across the island.

He also noted Famagusta’s strong performance, surpassing Larnaca and nearly matching Paphos in total transaction value. This was driven by several sales exceeding €1 million, compared to fewer high-value transactions in Larnaca and Paphos.

In August, Limassol reaffirmed its status as Cyprus’ powerhouse for high-end real estate, with the €58 million office sale underlining its dominant role in the market.

Meanwhile, Famagusta continued to attract not only tourists but also property investors, showing strong momentum through the summer months. In contrast, Nicosia experienced a notable decline in buyer and investor activity.

Loizou also pointed out that three major land plots were among the top ten sales, located in Larnaca (Skala area) and Limassol (Katholiki). Although it remains uncertain whether these plots will be developed into residential properties, their inclusion highlights ongoing discussions around urban land utilisation and the issue of idle plots in city centres.

Cyprus closes “Golden Passport” loopholes following EU demands

Nigel Howarth
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Cyprus closes “Golden Passport” loopholes following EU demands

StockWatch reports that Cyprus is moving ahead with significant legislative amendments to the law governing the granting of Cypriot citizenship to investors and their families, as part of efforts to avoid European Union sanctions in the wake of the Golden Passport scandal.

Following instructions from the Attorney General, the Ministry of the Interior has submitted a bill to the House of Representatives that effectively closes every loophole in the current legislation which might allow a revival of Cyprus’ “Golden Passport” scheme, formally known as the Cyprus Investment Programme.

The “Golden Passport” scheme, which previously allowed the Council of Ministers to grant citizenship to investors and their family members, was terminated in November 2020, after the European Commission launched infringement proceedings against Cyprus.

However, to formally conclude the infringement case, the European Commission has requested that Cyprus remove specific legal provisions to ensure there is no longer any legislative framework permitting a future return of the “Golden Passport” scheme.

According to the explanatory report accompanying the amendment, titled “Population Register (Amending) (No. 2) Law of 2025”, the new provisions result from consultations between the Republic’s Legal Service and the European Commission, with Brussels’ full consent.

Provisions on loss of citizenship & Golden Passport

The proposed legislation also introduces new rules on the removal of Cypriot citizenship. It sets a 60-day deadline for affected individuals to appeal to the Independent Committee for the Review of Citizenship Deprivation.

In addition, the Minister of the Interior will now be required to publish a notice in the Official Gazette when a person is stripped of Cypriot citizenship. This aims to alert public, semi-public and private organisations, helping prevent the misuse of invalid ID cards or passports.

Authorities say the move also enhances transparency in citizenship-related procedures. The Data Protection Commissioner has already approved the new provision, which has also undergone legal review and received Cabinet approval during its session on 29 September 2025.

The full text of the draft law is available from StockWatch

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