Call to end discrimination in Cyprus property law

Nigel Howarth
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Call to end discrimination in Cyprus property law

The Cyprus Ombudswoman, Maria Stylianou-Lottides, is calling for a change in the country’s property law to make it fairer for everyone, especially when it comes to how men and women are treated.

In a report released this week, she highlighted problems with the Acquisition of Immovable Property (Aliens) Law [Cap. 109], saying that it treats people differently based on gender, which goes against the idea of equal treatment under the law.

A complaint was sent to her office in March 2024, claiming that the property law unfairly favours:

  • Foreign Cypriots whose fathers were born in Cyprus, but not those whose mothers
  • Foreign women married to Cypriot men, but not foreign men married to Cypriot women.

This means that people in very similar situations are treated differently, simply because of whether the Cypriot parent is the mother or the father, or whether the Cypriot spouse is a man or a woman.

As it currently stands, the property law also makes it harder for foreigners to buy property in Cyprus without special permission from the government, unless they fall into one of the exempt categories. But these exemptions don’t apply equally to everyone, and that’s where the issue lies.

The Ministry of the Interior has said it is aware of the problem and is working with legal experts to review the law. A new proposal has already been submitted by MP Nikos Georgiou, but there’s no clear timeline for when changes might happen.

The Ombudswoman has now officially asked the Ministry and the Attorney General to speed up this process. She wants the definition of “foreign Cypriot” updated so that it no longer depends on whether someone’s connection to Cyprus is through their mother or father — and to make sure that both husbands and wives of Cypriots are treated equally.

In short, she’s asking for a fairer system that respects everyone’s right to equal treatment, regardless of their gender.

Housing market slows with lowest price growth since 2022

Nigel Howarth
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Housing market slows with lowest price growth since 2022

Residential property prices in Cyprus rose at their slowest pace in the last ten quarters during the final quarter of 2024, according to the Cyprus Central Bank’s (CCB) latest report on the housing market published earlier today.

In its Residential Property Price Index for the fourth quarter of 2024, the CCB notes that the slowdown in price growth is likely to continue in the short term, attributing it to increased housing supply and a slowdown in foreign demand for real estate.

“A potential stabilisation in construction material costs is also expected to help curb future increases in residential property prices,” the report adds.

Lowest growth rate since 2022

The House Price Index, which covers both apartments and houses, rose by just 0.4% in Q4 2024, compared with a 0.9% increase in the third quarter.

On an annual basis, prices were up 4.5%, down from 6.5% in Q3, marking the lowest year-on-year increase since Q2 2022.

The pace of slowdown varied between apartments and houses. Apartment prices increased by 5.5% year-on-year (down from 8.8% in Q3), while house prices grew 4.6% (from 6.0%).

On a quarterly basis, apartment prices rose just 0.1%, while house prices climbed 0.5%.

Regional breakdown: Paphos the exception

Among Cyprus’ districts, only Paphos experienced an acceleration in housing prices, while elsewhere,  growth slowed:

  • Nicosia: 0.7%
  • Limassol: 4.4%
  • Larnaca: 6.5%
  • Paphos: 13.4%
  • Famagusta: 9.2%

House prices in Paphos rose by 14.7%, while in Limassol and Famagusta, growth moderated to 5.1% and 7.8%, respectively. Nicosia even recorded a slight decline of 0.4%, while Larnaca remained stable at 6.1%.

Apartment prices slowed across the board, with annual increases of:

  • Nicosia: 2.6%
  • Limassol: 5.5%
  • Larnaca: 8.7%
  • Paphos: 12.1%
  • Famagusta: 14.2%

Demand for housing remains resilient

Data from the Department of Lands and Surveys show that the number of property sale contracts rose by 2.8% year-on-year in Q4, reaching 4,163.

The increase was supported by both domestic and foreign buyers, with local transactions up 3.2% and foreign ones up 2.2%.

Limassol led with 1,341 transactions, followed by:

  • Nicosia: 934
  • Larnaca: 859
  • Paphos: 825
  • Famagusta: 204

In Paphos, 67% of buyers were foreign—unlike other districts, where Cypriot buyers prevailed.

Lending activity and interest rates

New housing loans increased by 7.6% year-on-year, rising to €290.1 million from €269.6 million in Q4 2023, according to the CBC’s Monetary and Financial Statistics.

Despite a drop in the average mortgage rate to 4.62% (from 5.04% a year earlier), interest rates remain above their five-year average.

The CCB’s January 2025 Bank Lending Survey indicates that lending criteria remain stable and demand for housing loans unchanged.

Housing supply on the rise

The supply of residential units also grew significantly, with a 10% increase in building permits between January and September 2024. A total of 8,801 units were approved, up from 7,999 in the same period of 2023.

This rise reflects the market’s response to previous demand and stems from two key factors:

  1. The transfer of licensing responsibilities to District Local Authorities in June 2024.
  2. A surge in apartment block permits.

Larnaca and Limassol recorded the highest increases in building permits, suggesting a further boost in supply in the near future.

Market sentiment and construction costs

According to the European Commission’s Economic Sentiment Surveys, expectations for property price increases dropped sharply to 25.4 in December 2024, from 68 a year earlier, signalling more modest market outlooks.

Meanwhile, the Cyprus Statistical Service reported that construction material prices edged up only 0.2% year-on-year in Q4, showing signs of stabilisation. However, the index remains historically high due to external pressures such as geopolitical tensions and global supply chain disruptions.

EU probes Cyprus over unfair terms in consumer contracts

Nigel Howarth
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EU probes Cyprus over unfair terms in consumer contracts

Since 2013, the Republic of Cyprus has been under the scrutiny of the European Commission over concerns regarding the ineffective enforcement of EU Directive 93/13/EEC in connection with the use of unfair terms in consumer contracts.

This Directive is crucial for consumer protection, aiming to shield buyers from unfair terms often buried in standard contracts for goods and services.

This long-running investigation stems from Cyprus’ alleged failure to properly apply the law. The issue resurfaced recently following a landmark ruling by the Nicosia District Court against the Cyprus Housing Finance Corporation (CHFC), which sided with consumers over abusive clauses in loan agreements issued by financial institutions.

Government response and ongoing EU dialogue

Cypriot Minister of Energy, Commerce and Industry, George Papanastasiou, has reassured the House of Representatives that the government has taken all necessary steps to comply with the Directive, in a bid to avoid sanctions from the EU.

As Minister Papanastasiou outlined, the European Commission first issued a formal warning to Cyprus in 2013, highlighting issues in the country’s property market, where citizens were found to be facing unfair terms in mortgage contracts.

In a response to a parliamentary question raised by independent MP Alexandra Attalidou (Volt), the Minister explained that on 20 June 2013, the Commission formally launched infringement proceedings (Case No. 2013/2082) against the Republic of Cyprus.

At the heart of the issue was the failure to fully implement the 1996 law on unfair terms in consumer contracts, a law that should be enforced by the Consumer Protection Service in relation to land developers and credit institutions.

Between 2013 and April 2021, a series of official communications were exchanged between the Cypriot authorities and the Commission, all aiming to resolve the matter. According to Papanastasiou, the ministry has taken continuous action over the years to address the concerns raised, meeting the deadlines set by the Commission and fulfilling Cyprus’ obligations.

The process continued into 2024. Following the Cypriot government’s submission of a reasoned response in April 2021, the Commission requested further clarification, which was officially delivered on 4 November 2024. Cyprus submitted its detailed reply on 4 February 2025, providing all the data and documents requested.

Papanastasiou stressed that multiple ministries and competent authorities collaborated on the response, under the coordination and final review of the Legal Service. As it stands, the Ministry reports no pending actions on its part, and the final decision from the European Commission is now awaited.

Recent court rulings strengthen consumer rights

The issue of unfair contract terms in Cyprus has also been tested in court. On 13 May 2025, the Nicosia District Court issued a prohibition order against CHFC, instructing it to immediately cease using specific loan clauses deemed unfair under both national and European law.

The court found that the terms in question violated the principles of good faith and contractual balance, referencing case law from the Court of Justice of the European Union. These included clauses allowing for:

  • Unilateral changes to interest rates
  • Termination of interest subsidies
  • Imposition of vague or undefined fees and charges
  • Merging or offsetting of accounts without notice
  • Unilateral changes to repayment terms

This ruling marks the second conviction by a Cypriot court in a case involving unfair terms in banking contracts. The first came on 25 February 2021, in a case against Société Générale, which is currently under appeal. In that instance, 13 out of 14 mortgage clauses examined by the court were declared unfair, citing lack of transparency, disruption of contractual balance, and unilateral modifications by the bank.

As the EU continues to review Cyprus’ compliance, these rulings may prove pivotal in reshaping the local financial landscape and reinforcing consumer protections in the country’s banking and property sectors.

Trapped buyers law moves forward, but questions remain

Nigel Howarth
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Trapped buyers law moves forward, but questions remain

After years of delays and uncertainty, a new legislative proposal intended to address the plight of thousands of trapped buyers in Cyprus is inching its way toward a vote in Parliament.

Although recent developments suggest some progress, serious concerns remain about how effective this law will be – and whether it goes far enough to deliver justice.

A familiar story: promises and partial solutions

The proposed law targets a long-standing issue affecting nearly 9,500 property buyers who, despite having paid for their homes in full, do not have title deeds. For many, this is due to outstanding developer loans or pre-existing mortgages that were never disclosed at the time of purchase by the lawyers who (allegedly) represented their interests and prepared their contract of sale.

In June 2024, the Court of Appeal ruled that removing such mortgages without the lender’s consent violates the constitutional property rights of those lenders. That ruling severely limited the government’s ability to help buyers, many of whom face the risk of losing their homes.

Now, the Parliamentary Legal Affairs Committee has finalised a draft law designed to offer legal protection to roughly 4,000 of those affected. But even this “solution” has come at a cost.

Compromise with banks: necessary or concessionary?

Support from banks and vulture funds didn’t come freely. They initially rejected parts of the bill that gave buyers the right to seek court orders to remove existing charges on their properties. Following behind-the-scenes discussions, an informal agreement was reached, provided that several conditions were met.

Among the concessions:

  • Trapped buyers must act within strict deadlines to obtain information from the Land Registry.
  • Tight timeframes will apply for court applications and hearings.
  • The courts’ discretion over scheduling such cases will be restricted.

These additions raise concerns that the legal process could still be too complex, burdensome, or fast-moving for average home buyers to navigate effectively – especially for those without legal support.

What about the other 5,000+ trapped buyers?

While this legislation may help some, it leaves thousands of others trapped buyers in limbo. Many are unable to secure title deeds due to planning violations.

These violations not of the buyers’ making, but of the developers who built the properties and who failed to comply with the various permissions and permits authorised for their construction. These buyers remain outside the scope of the proposed law.

MP Nikos Tornaritis has acknowledged the issue and claims that Parliament wants to address it. But there’s little clarity on when (or if) this will happen.

Mixed reactions from lawmakers

Not everyone is celebrating. While MPs have spoken about “bridging differences” and making progress, others have been more cautious. AKEL MP Aristos Damianou stressed that the law only reached this stage through difficult compromise, and even now, the final version is undergoing legal and technical adjustments.

DIKO MP Michalis Yiakoumi struck a more optimistic note, suggesting the bill will move forward soon.

But optimism doesn’t guarantee results, especially when those affected have been misled or neglected for years and in some cases many decades.

Still no solution for thousands of trapped buyers

While the pending vote in Parliament might bring some relief, it’s far from a comprehensive solution. For many trapped buyers, the latest developments represent just another chapter in a long saga of bureaucracy, broken promises, and power imbalances.

Until there’s a clear, fair, and accessible system for delivering title deeds and holding developers and lenders accountable, true justice for all trapped buyers remains elusive.

Will the Cyprus government do more for trapped buyers?

Nigel Howarth
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Will the Cyprus government do more for trapped buyers?

The question on many people’s minds remains: will the Cyprus government finally take decisive action to resolve the long-standing and deeply unfair issue of trapped buyers? Or is that still a step too far?

What is the trapped buyers problem?

Thousands of property buyers in Cyprus – many of them foreigners – have paid in full for their homes, met all contractual obligations, yet remain unable to secure legal ownership in the form of a Title Deed. Why? Because their developers have existing mortgages or charges against the land, which block transfer of ownership.

After the original trapped buyers law was declared unconstitutional by the Appeals Court, Interior Minister Constantinos Ioannou reported that 9,497 buyers were still trapped – a staggering figure. It’s likely that many more buyers remain unaware that they, too, are in this precarious legal limbo.

What the trapped buyers proposal seems to suggest

Under the revised scheme, buyers would need to seek written consent from whoever placed the charges (typically a bank) to have them released or cancelled. If that consent is refused without justification, and the buyer has paid in full, then a court order can be sought to override the refusal.

Sounds fair in theory – but here’s the reality:

  • Buyers must initiate legal proceedings (ching-ching! for lawyers).
  • Cases can take years to move through the courts.
  • If the buyer wins, whoever placed the charges can appeal to a higher court, leading to further delays and more legal costs (another ching-ching! for lawyers).

Apart from being an money-earner for lawyers, is that really a “solution” for trapped buyers? Or just a legal obstacle course with no end in sight?

Update 15 May

The Cyprus Banking Association (CBA) has objected to court orders overriding the creditor’s consent to remove pre-existing mortgages and charges arguing it’s unconstitutional. The CBA has recommended that the trapped buyer needs explicit consent from the creditor to avoid constitutional issues. Concerns were also raised about vague legal terminology, particularly the use of “abusive” and “unjustified,” which could lead to uncertainty.

What about planning violations?

The situation gets even messier when planning infringements are involved.

In November 2022, then-Interior Minister Nicos Nouris stated that around 15,000 Title Deed applications were still awaiting approval – many of which could never be granted due to planning violations that could not be resolved. In some cases, he even admitted that demolition might be the only option.

So, the question becomes: If a buyer’s property must be demolished, who compensates them?

One friend of mine bought an off-plan apartment in Paphos. When it turned out the developer had breached planning rules, the Title Deed couldn’t be issued. In the end, the buyers had to pool money to fund the necessary remedial work themselves (which cost in excess of €100,000.) Why wasn’t the developer held responsible and made to pay?

How should the government help trapped buyers?

Here are a few practical suggestions the Cyprus government should seriously consider:

Criminalise planning infringements

Hold developers legally and financially responsible for planning violations. Make them either correct the issue or pay a fine large enough to fund third-party repairs – or end up in jail. And if a buyer suffers losses because of these violations? The developer should fully compensate them.

Guarantee title deed system

In Germany, notaries are mandatory for every property sale. The notary handles the legal checks and ensures that once a contract is signed, the buyer is quickly and securely registered as the legal owner in the Grundbuch (land register). The government guarantees this system, which typically delivers title security within weeks – not years.

Cyprus? No notary required. Transactions are handled by lawyers (ching-ching), and buyers can wait years – sometimes decades – to receive their deeds. Often, they only receive a sales contract, not legal ownership.

France operates a similarly strict and reliable system.

Government-run building inspections

Introduce independent, incorruptible inspections during construction, funded by a small levy on planning and building applications. This would reduce future violations and ensure build quality from the outset.

Use of escrow accounts

All buyer payments should go into escrow accounts.  This would protect buyers and ensures that banks, tax authorities and suppliers are paid by the developer.

Do not reject new applications without Title Deeds

The government must not reject new trapped buyer applications in cases where Title Deeds have not been issued. There are potentially hundreds, possibly thousands of properties that cannot be issued with Title Deeds due to planning violations. The government must help all innocent buyers trapped by planning violations.

The project supervisor (architect or civil engineer) is the main professional responsible for declaring and ensuring compliance with the Town Planning Permit and Building Permit conditions. Compliance is mandatory before Title Deeds can be issued.

I’m aware of a number of cases where project supervisors have refused to declare compliance because: (i) the development does not comply with the permits (ii) they have not been paid by the developer who engaged them.

Cyprus must step up

If Cyprus wants to be seen as a modern, trustworthy EU country, it must do more than just tinker around the edges of a broken system. It needs bold reforms, firm enforcement, and a real commitment to protecting property buyers – not leaving them at the mercy of rogue developers, dodgy lawyers, bureaucratic delays, or endless court battles.

The trapped buyer situation has dragged on for far too long. It’s time for real action – and not just for the sake of those already affected, but to restore confidence in the property sector and uphold the country’s international reputation.

Cyprus property market update – April 2025

Nigel Howarth
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Cyprus property market update – April 2025

Following our previous update, we can now share a more detailed breakdown of the Cyprus property market in April 2025, based on recently released data from the Department of Lands and Surveys.

A total of 1,404 properties were sold, marking a 3% increase compared to April 2024, when 1,366 transactions were recorded.

Let’s take a closer look at how the market performed across different segments and districts.

Domestic property market

Sales to Cypriot buyers in April were virtually unchanged compared to the same month last year, with 852 transactions registered, only slightly down from 855 in April 2024.

April 2025 domestic sales by district

  • Limassol: 268 (down 17%)
  • Nicosia: 303 (up 16%)
  • Paphos: 96 (up 32%)
  • Larnaca: 145 (down 13%)
  • Famagusta: 40 (up 33%)
Domestic contracts of sale deposited – 2024/2025 Comparison (April)


While some regions like Limassol and Larnaca experienced declines, Nicosia and Paphos posted impressive gains.

Domestic sales year-to-date (Jan–Apr 2025)

So far in 2025, the domestic market has shown overall growth, with 3,318 sales, an 11% increase on the 3,001 recorded during the same period in 2024.

  • Limassol: 1,091 (up 6%)
  • Nicosia: 1,091 (up 17%)
  • Paphos: 360 (no change)
  • Larnaca: 654 (up 17%)
  • Famagusta: 122 (up 9%)
Domestic contracts of sale deposited – 2024/2025 Year-to-Date Comparison

Overseas property market

Sales to foreign buyers, including both EU and non-EU nationals, reached 522 in April, an 8% rise from 511 in April 2024.

April 2025 overseas sales by district

  • Limassol: 193 (up 65%)
  • Nicosia: 51 (up 11%)
  • Paphos: 142 (down 21%)
  • Larnaca: 130 (down 8%)
  • Famagusta: 36 (up 33%)

Limassol saw a substantial spike, while Paphos and Larnaca dipped slightly.

Overseas contracts of sale deposited – 2024/2025 Comparison (April)


Overseas sales year-to-date (Jan–Apr 2025)

Foreign demand remains robust, with 2,223 transactions, up 13% from the 1,962 recorded in the first four months of 2024.

  • Limassol: 665 (up 25%)
  • Nicosia: 195 (up 4%)
  • Paphos: 707 (up 6%)
  • Larnaca: 531 (up 13%)
  • Famagusta: 125 (up 15%)
Overseas contracts of sale deposited – 2024/2025 Year-to-Date Comparison

EU buyers in the overseas market

Overseas sales to EU citizens rose 28% in April, with 186 properties sold compared to 145 in April 2024.

April 2025 EU sales by district

  • Limassol: 58 (up 132%)
  • Nicosia: 26 (down 7%)
  • Paphos: 56 (up 8%)
  • Larnaca: 31 (up 3%)
  • Famagusta: 15 (up 88%)
Contracts deposited by EU Nationals – 2024/2025 Comparison (April)


EU sales year-to-date (Jan–Apr 2025)

EU nationals accounted for 724 property purchases; a 29% increase compared to 561 in the same period last year.

  • Limassol: 183 (up 38%)
  • Nicosia: 92 (down 6%)
  • Paphos: 251 (up 41%)
  • Larnaca: 131 (up 18%)
  • Famagusta: 67 (up 56%)
Contracts deposited by EU Nationals – 2024/2025 Year-to-Date Comparison

Non-EU buyers in the overseas market

Sales to non-EU citizens remained steady in April, with 366 properties sold, identical to the number recorded in April 2024.

April 2025 non-EU sales by district

  • Limassol: 135 (up 47%)
  • Nicosia: 25 (up 39%)
  • Paphos: 86 (down 32%)
  • Larnaca: 99 (down 10%)
  • Famagusta: 21 (up 11%)
Contracts deposited by non-EU Nationals – 2024/2025 Comparison (April)


Non-EU sales year-to-date (Jan–Apr 2025)

Year-to-date, sales to non-EU nationals reached 1,499, reflecting a 7% increase over the 1,388 recorded in the same period last year.

  • Limassol: 482 (up 21%)
  • Nicosia: 103 (up 16%)
  • Paphos: 456 (down 6%)
  • Larnaca: 400 (up 11%)
  • Famagusta: 58 (down 12%)
Contracts deposited by non-EU Nationals – 2024/2025 Year-to-Date Comparison

Market segment overview

An interesting observation emerges from the data: in Paphos, non-EU buyers alone outnumber domestic buyers – a clear indication of the district’s enduring popularity with international investors and holiday home seekers.

Market Segment Summary Analysis Year-to-Date


Analysis of the Department of Lands and Surveys data further illustrate the shifting dynamics of Cyprus’ property market from 2008 through 2025, as well as the growing influence of international buyers in shaping regional property trends.

Contracts Deposited 2008 to 2025 Year-to-Date Comparison

Conclusion

The Cypriot property market continues to show resilience and diversity in 2025. While some districts are experiencing minor fluctuations, the broader trend is one of growth and increased foreign interest, particularly from EU citizens and non-EU nationals targeting Limassol, Paphos, and Larnaca.

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