Cyprus to tighten golden visa rules ahead of Schengen move

Nigel Howarth
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Cyprus to tighten golden visa rules ahead of Schengen move

Cyprus plans to tighten its golden visa scheme ahead of joining the Schengen area, the Deputy Minister for Migration has told MPs.

Nicolas Ioannides said around 1,500 golden visas had been issued over the past two years. Authorities are also checking whether holders of about 12,000 permits issued since 2013 still meet the scheme’s requirements.

Cyprus’ expected entry into Schengen could make the scheme more attractive, Ioannides said. He has submitted proposals to other ministers on possible changes.

The government is also reviewing where investment linked to the scheme should go. Options include directing funds into education, defence and innovation. “We need investment,” Ioannides said, but added that it must be made “in a controlled way”.

The issue was raised during a parliamentary committee’s examination of an Audit Office report on migration management.

Investment scheme under scrutiny

The debate has a direct bearing on Cyprus’ property market. ALMA party leader Odysseas Michaelides said the golden visa scheme remained in force and, in his view, was putting pressure on the housing market. He said Schengen membership could make the programme more attractive by allowing beneficiaries to travel freely within the EU.

The government has not announced specific changes or a timetable for tightening the scheme.

New system to track arrivals and departures

Ioannides said a new information system was being developed to track third-country nationals from their arrival in Cyprus until their departure. It is expected to be installed in March, although he did not specify the year.

The announcement followed an Audit Office finding that, between 2021 and 2023, available records showed no departure for about 290,000 third-country nationals who had entered Cyprus legally.

Ioannides said the data had since changed and that government systems were being connected. Missing departure records could have several explanations, he said, including leaving through an uncontrolled crossing point, obtaining a residence permit or departing on a different passport.

Migration services are also being digitised. In the first phase, people in five categories will be able to renew residence permits online, track their applications and receive a text message when a decision has been made.

Asylum backlog and returns fall

The number of pending asylum applications has fallen from about 24,000 when the Deputy Ministry was established to fewer than 12,500, Ioannides said. He put the current asylum approval rate at between 15% and 20%, adding that many people in Cyprus hold subsidiary protection status.

He said more than 6,100 Syrian asylum applications had been withdrawn or revoked since December 2024, and about 5,500 people had returned. More than 7,000 returns were recorded during the first eight months of 2026, compared with more than 12,000 departures in 2025.

Ioannides said irregular arrivals in the first eight months of 2026 were down 92% compared with the same period in 2022. New asylum applications had fallen by 93%. Nearly 7,000 third-country nationals had been returned since the start of 2026, he said, while returns since 2023 totalled about 40,000.

Cyprus can now take part in, and host, joint European return operations with Frontex, according to the Deputy Minister.

Green Line checks and migration costs

MPs also questioned controls along the Green Line and at entry points such as marinas. Police Assistant Chief Michalis Katsounotos said officers patrolled the areas daily and stopped vehicles and people involved in irregular crossings.

Ioannides said Cyprus did not operate a migration procedure at the Green Line, but that specific checks were in place. He added that the government would not accept the Green Line becoming a hard border. A legal instrument for cooperation with the British Bases is available as part of preparations for Schengen, Katsounotos said.

Migration-related benefits had fallen from €49 million when the Deputy Ministry was established to €15 million at the start of 2026, Ioannides told MPs. He said EU funding covered all the cost of upgrading the Pournara reception centre, 85% of the cost at Limnes and between 80% and 85% of return operations.

Cyprus needs workers in key sectors

The Deputy Minister said Cyprus needed workers in construction and tourism, as well as nurses. The government had signed bilateral agreements with Egypt and India to recruit workers more selectively. About 200,000 valid residence permits were held by third-country nationals, he said.

The number of unaccompanied minors had fallen from about 1,100 when the Deputy Ministry was established to 130. Age checks were being carried out, and there were no plans to create new facilities, Ioannides said.

He described legal, organised and controlled migration as part of the solution to labour shortages, adding that recruitment should take place through lawful routes rather than misuse of the asylum system.

(Translated and summarised from an article in Stockwatch)

Limassol balcony collapse prompts evacuation of 56-flat block

Cyprus News Agency
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Limassol balcony collapse prompts evacuation of 56-flat block

Residents were evacuated from a 56-apartment block in Limassol after a balcony collapsed on Thursday morning. No one was injured.

The incident happened at about 10am, when a fifth-floor balcony gave way and fell onto the fourth floor. The building stands at the corner of Georgiou Katsounotou and Christodoulos Hadjipavlou streets.

Yiannis Tsouloftas, president of the Limassol District Local Government Organisation (DLGO), told the Cyprus News Agency (CNA) that the authorities acted immediately.

The DLGO worked with Civil Defence to begin evacuating the building under an order issued by the Minister of the Interior. The block was then sealed off. Civil Defence arranged temporary accommodation for residents for two days.

Building had already been declared dangerous

Tsouloftas said the building had previously been declared dangerous by the DLGO. A law firm had been instructed to begin proceedings to secure an evacuation order.

He added that the owners must appoint a civil engineer and carry out repairs to remove the danger.

Cyprus property prices surge 8.5% as non-Cypriot buyers lead

Nigel Howarth
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Cyprus property prices surge 8.5% as non-Cypriot buyers lead

Cyprus property prices accelerated during the second quarter of 2026, with strong demand from non-Cypriot buyers and rising construction costs continuing to push the residential market higher.

The Central Bank of Cyprus (CBC) Residential Property Price Index (RPPI) increased by 2.4% during Q2 2026, following a 2.3% quarterly increase in Q1. On an annual basis, the index rose by 8.5%, compared with 7.5% in the previous quarter.

The latest figures point to continued momentum in the Cyprus property market, despite higher construction costs and tight lending conditions.

Cyprus property prices continue to climb

The increase was driven by both houses and apartments, although their performance differed.

House prices rose by 2.5% quarter-on-quarter and were 5.8% higher than a year earlier. Apartment prices increased by 1.3% during the quarter and by 8.9% annually.

The CBC said the continuing increase in Cyprus property prices reflects strong demand for housing, particularly from non-Cypriot buyers, as well as rising construction costs.

Property prices increased in every district during Q2 2026.

Famagusta recorded the highest annual increase at 10.0%, followed by Larnaca at 9.8%, Paphos at 9.6%, Limassol at 7.8% and Nicosia at 5.7%.

Limassol was the only district where annual price growth slowed during the quarter.

Apartment prices recorded particularly strong growth in Paphos, where they increased by 18.5% year-on-year. Apartment prices also rose in Famagusta and Nicosia, while growth slowed in Limassol and Larnaca.

Non-Cypriot buyers drive Cyprus property sales

Demand for property remained strong during Q2, with the number of sales contracts rising 15.4% year-on-year.

According to Department of Lands and Surveys data, 5,298 sales contracts were registered during the quarter, compared with 4,592 during Q2 2025.

Non-Cypriot buyers were responsible for much of the increase. Purchases by non-Cypriot buyers rose by 22.7%, reaching 2,107 properties compared with 1,717 a year earlier.

Purchases by local buyers also increased, rising 11.0% to 3,191 properties.

Limassol recorded the highest number of transactions, with 1,765 sales contracts, followed by Larnaca with 1,169, Nicosia with 1,076, Paphos with 1,073 and Famagusta with 215.

Non-Cypriot buyers were particularly prominent in Paphos, accounting for 66% of transactions during the quarter.

Housing loans increase as demand strengthens

Mortgage lending also supported the property market.

New housing loans increased by 14.2% year-on-year during Q2 2026, reaching €403.6 million compared with €353.5 million during the same quarter of 2025.

The weighted average interest rate on housing loans edged down to 3.23% in June 2026, compared with 3.26% in June 2025.

However, banks continued to apply strict lending criteria. The CBC’s Bank Lending Survey indicated that demand for housing loans increased during Q2, while lending standards remained unchanged.

New housing supply is rising

While demand continues to support Cyprus property prices, there are signs that the supply of new homes is also increasing.

Residential units covered by approved building permits rose by an impressive 63.7% during January-May 2026, reaching 8,978 units compared with 5,484 during the corresponding period of 2025.

The CBC therefore expects the supply of residential units to continue increasing over the medium term.

Construction activity also remained positive during Q2, according to European Commission business and consumer survey data.

Construction costs remain a concern

Despite the increase in construction activity, the cost of building remains high.

Construction material prices increased by 2.4% year-on-year during Q2 2026, remaining at historically high levels in recent years.

The CBC attributed much of the pressure to continuing geopolitical tensions, which have disrupted supply chains and increased the cost of construction materials.

Labour shortages in the construction industry are another factor putting upward pressure on property prices, with wages in the sector remaining elevated compared with pre-pandemic levels.

Property price expectations rise sharply

There are also signs that upward pressure on Cyprus property prices could continue.

The European Commission’s June 2026 Business and Consumer Surveys showed a substantial increase in the index measuring expectations for residential property selling prices over the following three months.

The index rose to 65.9 in Q2 2026, compared with 22.2 during the corresponding quarter of 2025.

Overall, the latest CBC figures show a Cyprus residential property market experiencing strong demand, rising prices and increased construction activity. Non-Cypriot buyers remain an important source of demand, while higher building costs and labour shortages continue to influence the market.

With residential building permits rising sharply, however, developers appear to be responding to strong demand by increasing the potential future supply of homes.

Cyprus property prices entered the second half of 2026 with significant upward momentum, although the balance between strong demand, higher costs and increasing housing supply will remain crucial to the market’s future direction.

Limassol property boom continues with major high-rise projects

Nigel Howarth
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Limassol property boom continues with major high-rise projects

The Limassol property boom shows no sign of slowing, with a new wave of major residential, office and mixed-use developments reshaping the city’s seafront and strengthening its position as a prime property investment destination in Cyprus.

Several major projects are either under construction, awaiting final approvals or preparing to start construction. Among them are AURA, SeaMark, C View Tower, the former Pavemar development and The Residences at The St. Regis Limassol.

The largest proposed project is AURA, planned for the former ERA Olympia site. Preparatory work is underway, with construction expected to begin next year. Previous plans envisaged a 44-storey tower standing 181.5 metres tall, potentially making it Cyprus’ tallest building and surpassing the 170-metre ONE tower.

SeaMark, meanwhile, has already started construction. The 21-level commercial and office tower will provide approximately 20,806 square metres of space, together with cafés, meeting facilities, a gym, spa, lounges and a rooftop garden. Completion is scheduled for the fourth quarter of 2028.

Limassol’s skyline is about to change dramatically

A separate €22 million development on the former Pavemar hotel site will rise 87 metres over 18 floors, mainly providing office and commercial space. C View Tower, another commercial development, will comprise 15 floors, including 10 office levels with sea views. The entire project has reportedly been offered for €55 million.

Another major scheme is The Residences at The St. Regis Limassol, being developed by Marfields Group beside the Public Garden. Its revised masterplan includes two residential towers containing 250 homes and a separate office tower, together with restaurants, retail, wellness and leisure facilities. Construction is scheduled to begin in 2026, with completion expected in 2031.

Other major projects are progressing around the former KEAN factory site and along Aktia Street, including Limassol Blu Marine and the planned 19-storey Lighthouse office tower.

The scale and diversity of these projects demonstrate how the Limassol property boom has evolved beyond luxury apartments. Developers are increasingly combining residential, office, retail and leisure facilities, partly reflecting strong demand for commercial space.

Millions pour in to fuel a new era of Limassol’s property boom

According to Ask Wire, sales of properties worth more than €1 million increased from approximately €275 million in 2024 to €417 million in 2025, with around €220 million recorded so far in 2026. High-rise developments accounted for roughly two-thirds of sales above €1 million in both 2024 and 2025.

The market is also attracting buyers who intend to live and work in Limassol permanently. The city’s expanding technology and business sectors, together with private schools and other infrastructure, are helping to support demand for long-term residential property.

The Limassol property boom is increasingly being driven by an established local economy and long-term demand, rather than solely by short-term investment incentives.

(Translated and summarised from an article first published in Politis)

Construction material prices jump 3.39% in August

Press Release
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Construction material prices jump 3.39% in August

Construction material prices in Cyprus continued to rise in August, with the latest figures pointing to higher costs for developers, contractors and property projects.

The Price Index of Construction Materials reached 123.09 in August 2026, based on 2021=100. That was a small 0.07% increase from July, but the annual rise was much stronger at 3.39%. The figures were published by the Cyprus Statistical Service (CYSTAT) earlier today.

The rise adds to cost pressures facing the construction sector. For property developers, higher material costs can affect project budgets, building schedules and the eventual cost of new homes and commercial property.

CYSTAT Building Material Price Index Chart

Wood, plastics and metals see sharp rises

Several major construction material groups recorded notable annual increases.

Products made from wood, insulation materials, chemicals and plastics rose 4.60% compared with August 2025. Within this group, plastic products recorded the largest increase, at 6.58%, while wood products rose 5.11%. Chemical products were up 3.02%, while insulation materials increased by 1.16%.

Metallic products also rose 4.60% year on year. Iron and steel products increased by 3.90%, while products made from aluminium and other metals rose 5.99%. On a monthly basis, however, metallic products fell by 0.19% in August.

The figures show that the biggest annual pressure is not spread evenly across all materials. Some products are rising much faster than the overall index, while others have seen little change.

Cement prices continue to climb

Minerals recorded a 2.67% annual increase in August. Within the category, cement prices rose 4.79%, while stones increased by 1.30% and mineral aggregates by 0.67%.

Mineral products rose by a more modest 1.35% year on year. Cement products increased by 1.63%, while ceramics rose by just 0.39%.

For developers and builders, these changes matter because materials such as cement, metals, timber and plastics are used across many types of construction. Sustained increases can therefore add to the wider cost of delivering new property.

Electrical fixtures post the biggest rise

Electromechanical products recorded a 3.58% annual increase in August. The strongest rise within the group came from electrical fixtures, up 7.30% compared with the same month last year.

Heating and cooling equipment moved in the opposite direction, falling 1.67% year on year. Other electromechanical products increased by 3.22%.

The mixed performance shows that construction cost trends remain uneven. While several key inputs have become more expensive, some parts of the market have recorded price falls.

Construction material prices remain higher over 2026

Looking beyond August, the index was 2.06% higher during January-August 2026 than during the same period in 2025. This provides a broader measure of construction material costs than the annual August figure alone.

Plastic products recorded a 5.14% increase over the January-August period. Electrical fixtures rose 5.64%, while products made from aluminium and other metals increased by 4.63%.

For Cyprus’s property sector, the latest data underline the continuing importance of construction costs when assessing new development projects. The figures do not measure property prices themselves, but they provide an indicator of the changing cost of building materials.

Source: Statistical Service of Cyprus, Price Index of Construction Materials, August 2026.

Cyprus property market faces fresh pressures despite growth

Nigel Howarth
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Cyprus property market faces fresh pressures despite growth

The Cyprus property market remains strong, with sales holding steady and the value of transactions rising. But significant weaknesses and distortions continue to affect the sector.

That was one of the key messages from the Cyprus Property Show 2026, organised by FMW Financial Media Way on Wednesday, 16 September at the Cleopatra Hotel in Nicosia. The conference, titled “The present and future of property in Cyprus“, examined the latest market trends and the challenges facing housing, construction and planning.

Building safety was also high on the agenda, alongside the need to modernise the country’s planning framework.

Property sales remain steady

In remarks delivered by the Interior Ministry’s Director General, Elikkos Elia, Interior Minister Constantinos Ioannou said Cyprus’ property market remained strong.

A total of 21,387 property transfers were recorded across Cyprus in 2025. This was broadly in line with the figure recorded in 2024.

At the same time, the total value of transactions rose by around 10%, according to figures presented at the conference. The total value reached €4.73 billion in 2025.

The Interior Minister stressed that property is closely linked to the wider economy. It also affects investment, urban and rural development and the quality of life of residents.

Planning reform linked to housing

Housing was a major theme during the conference, with the government linking housing policy to development and planning.

Ioannou said housing was among the government’s top priorities. Measures are being promoted to increase the housing supply while also strengthening citizens’ purchasing power.

He said housing policy should be considered alongside wider development policy and town planning.

The government is therefore moving ahead with a review of the Local Plans covering the major urban areas. The Policy Statement is also being reviewed.

According to Ioannou, the aim is to create a more modern, practical and flexible development framework. It should respond to current housing needs while preparing for future challenges.

Planning changes aim to tackle old distortions

Heraklis Achniotis, First Town Planning Officer, also outlined the changes under way. He was speaking on behalf of the Director of the Department of Town Planning and Housing.

He said Cyprus was at an important point in the planning process. Work includes the preparation and review of the Policy Statement, the Local Plans for the four major urban centres and the island-wide plan.

Achniotis said these reviews should not be treated as a routine exercise. Instead, he described them as strategic tools that could help address existing distortions.

Urban resilience was another key issue. He said cities must be able to withstand shocks and that decisions taken today will shape the sustainability of planning over the next 20 to 30 years.

Housing remains a major challenge

The role of the Cyprus Land Development Corporation (KOAG) was also discussed at the event.

KOAG Director General Eleni Symeonidou outlined the organisation’s plans and projects aimed at addressing the country’s housing pressures.

ETEK President Constantinos Constanti also returned to the issue of housing. He noted that the Cyprus Scientific and Technical Chamber had submitted a comprehensive housing policy memorandum in 2023.

According to Constanti, some ETEK proposals have since been adopted. However, he said the overall objective had not yet been achieved.

He called for a single strategy and shared objective for the property sector. In his view, the sector should be able to grow while also contributing to better cities and improved quality of life.

Building safety warning

Building safety emerged as another pressing issue at the Cyprus Property Show.

Constanti warned that the number of dangerous buildings could rise sharply without further action. He said there are currently around 5,000 dangerous buildings and argued that the figure could reach 15,000 or more within five years.

He called for regular building inspections. His proposal was for a system similar to an MOT for buildings.

The comments highlight a wider challenge for Cyprus’ property market: supporting new development while also dealing with the condition and safety of existing buildings.

Developers call for faster approvals

Andreas Demetriades, president of the Cyprus Association of Large Investment Projects, also called for a more comprehensive strategy for the next phase of development.

His speech was delivered by board member Christos Christou.

Among the priorities raised was a substantial acceleration in the approval process for strategic investments. Demetriades also called for a stable and predictable planning, tax and investment framework.

Modern infrastructure was another priority, alongside competitive energy costs and access to the skilled workers needed by the economy.

He also highlighted the need to include the green transition and technology in the design of new projects.

A more active international policy to attract serious, long-term investors was another proposal put forward.

Property market faces several pressures

The market is operating in a complex and changing environment, according to the Cyprus Real Estate Agents Association’s vice-president Vasilis Artemiou.

He said geopolitical disruption in the wider region, international uncertainty, higher construction costs and changes in the economic environment had created significant challenges.

These pressures continue to affect the property sector, he said.

Artemiou also highlighted the changing role of estate agents. He said their work goes beyond bringing buyers and sellers together and includes guiding clients through one of the biggest financial decisions of their lives.

Four pressures on construction

Construction costs and capacity were also discussed by the Stefanos Pierides, the general secretary of the Federation of Building Contractors Associations of Cyprus.

He identified four factors directly affecting the delivery of new property: labour shortages, rising construction costs, wider international and geopolitical uncertainty, and energy costs.

According to Pierides, the impact extends beyond construction itself.

Higher costs affect the wider development chain, put pressure on the viability of projects and can add to the final price of property.

Banks expand digital mortgage services

The role of mortgage finance was highlighted by Theodosis Theodosiou, director of retail banking at Bank of Cyprus.

He said the bank had created an ecosystem of mortgage solutions and digital tools designed to support different stages of the journey towards home ownership.

Theodosiou also highlighted the bank’s new online mortgage service.

Cyprus property market enters a new phase

The Cyprus Property Show 2026 presented a market with continued activity but also a range of structural challenges.

Stable transfer numbers and higher transaction values point to continued demand. At the same time, housing affordability, planning reform, construction costs, labour shortages and building safety remain key issues.

The discussions suggest that the next phase of Cyprus’ property market will depend not only on sales and investment, but also on how effectively the country addresses the wider conditions shaping development and home ownership.

(Based on an article in Stockwatch)

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