Many “Mortgage-to-Rent” homes lack Final Approval Certificates

Nigel Howarth
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Many “Mortgage-to-Rent” homes lack Final Approval Certificates

Around 60% of homes eligible for the “Mortgage-to-Rent” Scheme do not have final approval certificates, according to a report presented to the Parliamentary Finance Committee.

The committee discussed whether KEDIPES should be exempt from the requirement to obtain these certificates for properties acquired under the scheme, just as the government is exempt. A Ministry of Finance representative stated that this exemption would help increase the number of approved applications.

Under current law, property owners must obtain an Approval Certificate, or they may face administrative and even criminal consequences. Since KEDIPES will own these properties, it could be held legally responsible unless it is exempt. The Ministry of Finance representative argued that, as the scheme is a government initiative assigned to KEDIPES, the company should not be responsible for missing Certificates.

KEDIPES also assured that tenants would not be affected by the exemption. It promised to cover the cost of restoring the residences, which is estimated at 15% of their value. For example, a €200,000 property could receive up to €30,000 in repairs.

However, MPs raised concerns about the proposal. AKEL MP Aristos Damianou warned that although the bill is signed by the Attorney General, it may not be legally strong and could be challenged in court. He also questioned who would be responsible if issues arose due to the exemption granted to KEDIPES.

DIKO MP Chrysis Pantelides pointed out that the amendment exempts KEDIPES from legal obligations but does not exempt the properties themselves. Committee Chair Christiana Erotokritou noted that many state entities receive different treatment compared to private citizens. She warned that if any damage occurs to a property due to this exemption, the government will bear responsibility, as KEDIPES is fully state-owned.

What are Final Approval Certificates?

Final approval certificates are issued by the planning authorities after they have inspected properties once they’ve been built. The Certificate confirms that the properties in question have been built according to the permissions and permits authorised for their construction.

Once Certificates have been issued, the planning authorities passes the approved permissions, permits, plans, and the final approval certificates to the Land Registry, where Title Deeds for the property(ies) will be issued.

Urban Planning Amnesty Scheme receives 699 applications

Nigel Howarth
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Urban Planning Amnesty Scheme receives 699 applications

A total of 699 applications have been submitted so far under the Urban Planning Amnesty Scheme, which aims to legalize minor planning infringements in approved developments.

The scheme, which launched on September 23, 2024, runs for six months and is set to close on March 23, 2025.

According to Elikkos Elia, Permanent Secretary at the Ministry of the Interior, 616 of the amnesty applications relate to residential developments. Speaking to the Cyprus News Agency (CNA), Elia provided a breakdown of applications submitted to Local Government Organisations (LGO):

  • Nicosia: 219 applications
  • Limassol: 215 applications
  • Larnaca: 78 applications
  • Paphos: 150 applications
  • Famagusta: 37 applications

The applications cover a range of developments, including:

  • 616 residential developments
  • 36 commercial developments
  • 8 office developments
  • 6 industrial and storage developments
  • 3 tourism developments
  • 3 health developments
  • 2 sports developments
  • 1 welfare development
  • 13 leisure and entertainment developments
  • 4 agricultural/livestock developments
  • 7 other developments

Elia encouraged eligible property buyers to take advantage of the amnesty scheme before it closes, allowing them to secure final approval and the property’s title deeds.

He emphasized that the scheme is designed to legalize small-scale urban planning infringements, such as exceeding the building coefficient and minor regulatory deviations (e.g., covered verandas, pergolas, or reduced boundary distances).

The application process is simplified and can be completed with assistance from private consultants.

The application fee is paid to the Special Fund of the Cyprus Land Development Corporation, supporting affordable housing initiatives. Elia highlighted that the amnesty scheme aligns with the government’s broader housing policy, aiming to address housing challenges and promote affordability.

EIB commits €10 billion to tackle Europe’s housing crisis

Nigel Howarth
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EIB commits €10 billion to tackle Europe’s housing crisis

The European Investment Bank (EIB) is taking steps to address Europe’s housing crisis, which affects millions across the continent.

The lack of affordable and adequate housing is a widespread issue, expected to impact future generations unless decisive action is taken.

To tackle this, the EIB has launched a new pan-European investment platform aimed at supporting affordable and sustainable housing.

The initiative, announced at the EIB conference “Investing in a More Sustainable and Secure Europe”, includes a €10 billion investment over the next two years.

A key part of the plan is the creation of a one-stop-shop online portal, which will provide financial support and advice for construction innovation, affordable housing development, and energy-efficient renovations.

EIB President Nadia Calviño highlighted the scale of the issue, stating that Europe requires an additional one million new homes annually to meet demand, while five million homes need renovation each year to reduce environmental impact.

By 2026, the EIB aims to double its housing-related funding to €6 billion, with total investments reaching €10 billion in 2025 and 2026. Collaboration with key stakeholders, including national banks, the private sector, and the European Commission, will be essential.

The housing crisis has led to significant financial burdens for Europeans. Over the past 15 years, rents have risen by 25% on average, while house prices have surged by 50%. In 2024, 17% of Europeans lived in overcrowded homes, and one in ten spent over 40% of their income on housing.

The crisis is causing young people to delay starting families, students to reject university offers, and workers to turn down jobs due to high accommodation costs, affecting Europe’s productivity and quality of life.

Cyprus seeking EIB funding to tackle its housing crisis

In Cyprus, the government is closely monitoring developments. The Ministry of the Interior plans to engage in discussions with the EIB to explore funding opportunities.

Potential options include subsidised interest rates for housing construction, direct funding for affordable housing projects, and state-led development initiatives through the Cyprus Land Development Corporation.

The government aims to secure a portion of the €10 billion fund to address its own housing challenges.

The 10 most expensive property sales in January

Nigel Howarth
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0
The 10 most expensive property sales in January

Ask Wire, a technology-based company that monitors transactions, asking prices, and construction activity in the real estate sector, has processed and published data on the 10 most expensive property sales completed in January 2025, along with the total value of the 10 highest sales per district.

The 10 most expensive property sales across Cyprus had a total value of €12.1 million, with the highest-priced sale being a house in Mouttagiaka, Limassol, sold for €2.5 million.

Limassol dominates the list of the 10 priciest properties, accounting for seven transactions with a total value of €8.8 million. Completing the top 10 are Larnaca with two sales totalling €2.5 million and Paphos with one sale worth €810,000.

The 10 most expensive property sales in January

Property Type Location Sale Price
House Limassol / Mouttagiaka €2.05 million
House Limassol / Souni – Zanakia €2 million
Land Larnaca / Mazotos €1.6 million
House Limassol / Mouttagiaka €1.2 million
House Limassol / Agia Zoni €1.06 million
House Larnaca / Perivolia €900,000
House Limassol / Agios Athanasios €820,000
House Limassol / Agia Zoni €820,000
Plot Limassol / Agios Nikolaos €820,000
Land Paphos / Geroskipou €810,000

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

January’s 50 largest transactions (10 per district)

Of these top 50 sales, 36.5% of the total value came from the 10 properties in Limassol. Larnaca and Paphos each accounted for 19.5%, leaving Nicosia behind at 16%.

The top 10 sales in Limassol amounted to €11 million, while those in Paphos and Larnaca each totalled €5.9 million.

The 10 most expensive properties in Nicosia sold for €4.8 million. Meanwhile, in the free district of Famagusta, the total value of the 10 highest sales was €2.6 million, making up just 8.5% of the total value of the 50 most expensive sales in January.

High-value property sales in January

The 50 highest-value property sales in November 2024 totalled €47.3 million.

  • Famagusta: €2.6 million (8.5% of the total)
  • Larnaca: €5.9 million (19.5% of the total)
  • Limassol: €11 million (36.5% of the total)
  • Nicosia: €4.8 million (16% of the total)
  • Paphos: €5.9 million (19.5% of the total)

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

January’s most expensive property sales/district

District Highest Transaction Type of Property Share of District Total (%)
Famagusta €520,000 House 20%
Larnaca €1.6 million Land 27.1%
Limassol €2.05 million House 18.6%
Nicosia €745,000 House 15.5%
Paphos €810,000 Land 13.5%

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

Pavlos Loizou, CEO of Ask Wire, commented on the above:

“With the highest sale just surpassing the €2 million mark, the high-value property market remained at low levels in January 2025. Notably, compared to the previous month, December 2024, the total value of the 50 most expensive transactions recorded a significant 67% decrease.

“Beyond that, we observe that 27 of the top 50 sales were houses. If we also include the nine luxury apartment transactions, it becomes clear that the driving force behind the high-value property market in January was residential real estate.

“The district with the fewest residential property sales in its top 10 was Nicosia (two houses and two apartments), whereas the top 10 sales in the free district of Famagusta consisted exclusively of residential properties (seven houses and three apartments).”

For more information and insights on the real estate market, visit Ask Wire’s website.

LGOs concerned over lack of building inspectors

Nigel Howarth
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0
LGOs concerned over lack of building inspectors

While the Local Government Organisations (LGO) support the extension of the fast-track building licensing procedure to include medium-risk projects, they have raised concerns about the lack of building inspectors.

The presidents worry that their organisations may face additional responsibilities while already struggling with staff shortages.

The Ministry of the Interior has reassured them, saying their concerns are due to a lack of information.

Staff shortages remain a challenge

Constantinos Yiorkadjis, President of the Nicosia LGO, stressed the urgent need to appoint building inspectors. If this does not happen, LGOs will have to handle inspections themselves, despite already facing staffing issues. Until building inspectors are appointed, LGOs will oversee inspections.

Yiorkadjis remains positive about the new ministerial decree, believing it is a step in the right direction. He is optimistic that if all departments receive sufficient staffing, the new process will be very effective.

He welcomed the initiative, which includes processing permits within 80 working days, shifting inspections from paperwork to physical site visits, and introducing building inspectors in partnership with ETEK.

LGOs responsible for final approval

Angelos Hadjicharalambous, President of the Larnaca LGO, explained that project designers will now be responsible for ensuring their applications are complete before submitting them through the “Ippodamus” system, along with a special declaration form.

However, LGOs will still have the final say, as they must review all applications before issuing permits.

Hadjicharalambous acknowledged that appointing building inspectors would ease the workload on LGOs, allowing them to focus on large-scale developments inherited from previous authorities.

Benefits for the housing market and economy

Polys Kourousides, President of the Cyprus Valuers Association, highlighted the economic advantages of the new regulations. He believes they will boost housing supply and help stabilise property prices.

With two inspections conducted by building inspectors and a final one by LGOs, the system will ensure developments follow regulations while allowing LGOs to concentrate on more complex projects.

Temporary register of building inspectors by ETEK

Interior Ministry spokesperson Margarita Kyriakou clarified that appointing building inspectors requires legislative approval. Until this is finalised, ETEK will create a temporary register of members to carry out site inspections for a limited time.

Since the new permitting process for building projects begins at the end of March, there will be no immediate need for inspections. She dismissed concerns about LGOs having to handle inspections themselves as a misunderstanding.

She also confirmed that planning permits are already being processed, while building permits will follow by the end of the month, alongside the temporary ETEK register.

Call to cap short-term rentals rejected

Nigel Howarth
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Call to cap short-term rentals rejected

The Attorney-General’s office has rejected a proposal to limit how many short-term rental properties a person or company can register in Cyprus. However, discussions on the topic are still ongoing.

The proposal was part of an effort to regulate the fast-growing short-term rental market, including properties listed on platforms like Airbnb. The deputy tourism ministry suggested allowing each person or company to register only two properties in the self-catering accommodation register.

The plan became public after a parliamentary discussion on February 18, where Deputy Tourism Minister Costas Koumis confirmed that a proposed law change had been sent to the Attorney-General’s office. This change aimed to make registration mandatory for all short-term rental properties before they could be rented out or advertised.

Later, Koumis explained on state radio that the proposal was meant to prevent large-scale short-term rental businesses from avoiding hotel regulations. He said many investors, mostly foreign, were buying multiple properties, registering them as short-term rentals, and operating them without following the same rules as hotels. This, he argued, created unfair competition in the tourism industry.

Right now, an investor can buy 10 to 12 apartments, turn them into short-term rentals, and compete with hotels without facing the same rules. The government had hoped that limiting the number of properties a person could register would help stop this practice.

The proposal also included new penalties for violations, which fall under the government’s authority and do not require consultation with those affected.

Even though the cap was rejected, the issue is still being discussed. The house commerce committee will review broader rules for short-term rentals, including new EU regulations on the sector.

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