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Jointly owned and dangerous buildings take top priority

Legislation covering jointly owned residential buildings and unsafe properties will become the top priority of Cyprus’ Parliamentary Committee on Interior Affairs when Parliament returns in September.

The issues were among the main topics discussed during the first meeting between the committee’s newly appointed members and the Minister of the Interior. Housing policy, local government reform and the reorganisation of civil protection services also featured prominently.

Committee Chairman Aristos Damianou described the meeting as both “formal and substantive”, noting that the Interior Ministry’s responsibilities span a wide range of policy areas. As a result, the committee faces a demanding legislative programme while continuing its parliamentary oversight responsibilities.

Housing supply and building safety take centre stage

Mr Damianou said particular attention was given to Cyprus’ housing challenges, including the need to increase the supply of homes and the difficulties many young couples face in securing finance to purchase property.

He confirmed that the committee intends to prioritise legislation covering jointly owned residential buildings and unsafe properties once consultations between the Ministry of the Interior and the District Local Government Organisations have been completed.

According to Mr Damianou, the two issues are closely linked because they directly affect public safety and the quality of the residential environment. They will form the focus of the committee’s first meetings after Parliament reconvenes in September.

The committee will also continue monitoring the implementation of local government reform to identify operational issues and recommend improvements where necessary.

Government seeks stronger powers on dangerous buildings

Interior Minister Constantinos Ioannou said strengthening legislation on unsafe buildings, passing the Jointly owned Buildings Bill and reorganising civil protection remain the government’s leading legislative priorities.

He said recent balcony collapses and the fatal incident in Germasogeia had highlighted the urgent need for more effective measures to protect public safety.

Although responsibility for unsafe buildings transferred to the District Local Government Organisations on 1 July 2024, the minister said further legislative changes are needed to give local authorities stronger enforcement powers and faster procedures to address dangerous structures.

He stressed that not every unsafe building requires demolition. In most cases, repair and maintenance work is sufficient. Working alongside Cyprus Scientific and Technical Chamber (ETEK), local authorities have already mapped unsafe buildings and classified them according to their level of risk.

The government has also allocated around €2 million to District Local Government Organisations to ensure they have sufficient liquidity where emergency works must be carried out before costs are recovered from property owners.

However, Mr Ioannou emphasised that intervention by local authorities should remain a last resort, with property owners continuing to bear primary responsibility for maintaining their buildings in a safe condition.

Jointly owned buildings bill nears final consultation stage

The minister also highlighted the proposed Jointly Owned Buildings Bill, describing it as a comprehensive framework designed to tackle the long-standing management problems affecting thousands of apartment buildings across Cyprus.

Poor management, disputes between owners, unpaid communal fees and inadequate maintenance have frequently resulted in deteriorating living conditions, creating risks to both public safety and public health.

The proposed legislation would clearly define the rights and responsibilities of owners and tenants while introducing a dedicated maintenance fund (aka sinking fund) for every jointly owned residential building.

It also proposes stronger powers for management committees, compulsory insurance for buildings and individual units, and a new supervisory framework overseen by the District Local Government Organisations (DLGOs).

According to the minister, the reforms are expected to make a significant contribution to reducing the number of unsafe buildings across the island.

Mr Ioannou said consultations on the legislation are now in their final stages after the ministry completed further discussions and technical studies addressing concerns raised by local authorities over staffing requirements and operating costs.

The studies concluded that staffing needs would be limited and that ongoing operating costs could be funded through a modest fee, removing the need for permanent government funding sought by some local authorities. He added that the development of the necessary digital systems should not delay the wider reform programme.

Alongside these measures, the government is also progressing plans to establish a new General Directorate for Civil Protection within the Ministry of the Interior. The new body would bring together services currently spread across different government departments, improving coordination, resource management and crisis response.

Meanwhile, Nicoletta Constantinou said the discussions confirmed that unsafe buildings, jointly owned residential developments and civil protection reforms remain the ministry’s key priorities.

She also argued that building safety is closely linked to the wider housing crisis, with financial pressures on households sometimes leading to unauthorised property alterations. Ms Constantinou called for faster planning and licensing procedures by local authorities, as well as improved access via rural roads to strengthen wildfire response.

Both the committee chairman and the Interior Minister concluded by reaffirming their commitment to close cooperation between Parliament and the government to advance reforms that improve public safety, address long-standing structural problems and enhance the quality of life for residents across Cyprus.

Cyprus property prices rose again early 2026

Residential property prices in Cyprus continued to rise during the first quarter of 2026, according to the preliminary estimate published by the country’s Statistical Service.

The House Price Index (HPI) reached 102.95 points, representing a 1.6% increase compared with the fourth quarter of 2025 and a 3.4% annual rise compared with the first quarter of 2025.

Property price index returns to growth

Official data shows that the Property Price Index experienced fluctuations throughout 2025 before returning to a clear upward trend at the start of 2026.

The index stood at 99.58 points in the first quarter of 2025 before falling to 97.74 points in the second quarter. It then recovered to 101.35 points in the third quarter and remained virtually unchanged at 101.34 points in the final quarter of 2025, before increasing to 102.95 points in the first quarter of 2026.

On a quarterly basis, property prices rose by 4.2% in the first quarter of 2025, declined by 1.8% in the second quarter, increased by 3.7% in the third quarter and remained stable during the fourth quarter. Growth resumed in the first quarter of 2026 with a further 1.6% increase.

Annual price growth followed a similar pattern. The year-on-year increase stood at 4.7% in the first quarter of 2025, eased to 2.9% in the second quarter, accelerated to 4.2% in the third quarter and reached 6.0% in the final quarter of 2025 before moderating to 3.4% in the opening quarter of 2026.

New homes and existing properties both record price gains

The sub-index for new residential properties increased to 103.25 points in the first quarter of 2026 from 102.06 points in the previous quarter.

Over the review period, the index for new homes stood at 99.97 points in the first quarter of 2025, fell to 96.26 points in the second quarter, rebounded to 101.71 points in the third quarter and edged up to 102.06 points in the fourth quarter before recording another increase at the beginning of 2026.

Meanwhile, the sub-index for existing residential properties climbed to 102.51 points in the first quarter of 2026, compared with 99.82 points in the fourth quarter of 2025.

The index for existing homes measured 98.75 points in the first quarter of 2025 before rising to 100.84 points in the second quarter. It eased slightly to 100.59 points in the third quarter and 99.82 points in the final quarter of 2025, before strengthening to 102.51 points in the first quarter of 2026.

The latest figures indicate that Cyprus’ housing market entered 2026 on a firmer footing, with both new-build and existing residential properties contributing to the continued rise in house prices.

Renewed calls for building MOTs after Limassol balcony collapse

The Cyprus Scientific and Technical Chamber (ETEK) has renewed calls for the introduction of mandatory building MOT-style inspections following the latest balcony collapse at an apartment block in Limassol.

Speaking to the Cyprus News Agency, ETEK Secretary General and civil engineer Andreas Theodotou said the incident once again highlights the growing challenges posed by Cyprus’ ageing building stock, much of which was constructed before modern building regulations came into force.

The Limassol district governor, Yiannis Tsouloftas, said the apartment building had not been designated as dangerous, although the municipality had identified it as requiring maintenance.

Ageing buildings under increasing pressure

According to Mr Theodotou, many of the island’s older residential buildings were designed and built before 1994, prior to the implementation of current regulatory standards.

He noted that a significant number of properties were constructed in the years following the 1974 Turkish invasion, often under time pressures, with limited supervision and, in some cases, lower-quality construction materials.

However, he stressed that the biggest issue facing the sector today is a lack of ongoing maintenance. This is particularly evident in jointly owned apartment buildings, where reaching agreement among multiple property owners on repair and maintenance work can prove difficult.

As a result, many apartment blocks across Cyprus remain in poor condition, raising concerns about long-term structural safety.

Mandatory building MOTs proposed

ETEK is once again advocating the introduction of a regular building inspection system, similar to the MOT regime used for vehicles.

Mr Theodotou said the proposal has been under discussion for many years and expressed hope that Parliament will move forward with the legislation when it resumes its work.

He explained that discussions have also taken place with the Ministry of the Interior. Both the Ministry and ETEK believe that mandatory building inspections should be introduced alongside new legislation governing jointly owned buildings.

Under the proposal, management committees of apartment blocks would be required to appoint a qualified engineer to carry out periodic inspections. Following an assessment, the engineer would issue an official building inspection certificate confirming the property’s condition.

Inspections could support building renovation funding

Mr Theodotou described the inspection certificate as a vital tool for improving building safety and creating a comprehensive database of older properties across Cyprus.

Such a register would help authorities identify how many buildings were constructed before 1994, assess their current condition and determine whether maintenance or structural upgrades are required.

The information could then be used to develop targeted support measures, including government grants or European funding programmes to assist owners with renovation, strengthening works and essential repairs.

Where serious issues are identified, building owners would be able to prioritise urgent remedial works and address safety concerns before they develop into more significant structural problems.

As concerns grow over the condition of Cyprus’ ageing residential stock, the latest incident in Limassol is likely to increase pressure on policymakers to introduce a formal building MOT system aimed at improving safety standards and preventing future failures.

(Translated & summarised from an article published by the Cyprus News Agency)

Cyprus faces growing challenge from ageing buildings

Cyprus’ ageing buildings are becoming a major property and infrastructure challenge, according to Platonas Stylianou, First Vice President of ETEK and President of the European Council of Civil Engineers (ECCE).

Speaking to the Cyprus News Agency, Stylianou said recent deadly earthquakes in Venezuela highlight the importance of earthquake safety in countries at risk of seismic activity. He noted that high death tolls are often caused not only by the strength of an earthquake but also by weak or poorly maintained buildings.

Newer buildings are safer

Buildings constructed in Cyprus after 2012 offer strong earthquake protection because they were designed under mandatory European standards known as Eurocodes.

Buildings built between 1994 and 2011 also perform much better during earthquakes than those built before 1994, when modern earthquake-resistant standards were not fully in place.

Although Cyprus experiences major earthquakes only occasionally, it remains in a seismically active region. The last significant earthquake occurred in 1996, but stronger events remain possible.

Stylianou stressed the need to follow seismic regulations, carry out regular inspections and maintain buildings properly.

He added that no building can be guaranteed to remain undamaged in a major earthquake. The main goal of engineering standards is to protect lives and prevent building collapse.

Older buildings need attention

Many buildings in Cyprus were built before 1994 and do not meet modern seismic standards.

Stylianou said these properties need special attention because ageing can weaken structures over time. Factors such as corrosion, weather exposure, poor maintenance and unauthorised alterations can reduce a building’s strength.

The problem is especially serious in coastal areas, where salt and harsh environmental conditions can speed up deterioration.

“The ageing of the building stock is one of the greatest challenges Cyprus faces today,” he said.

Call for regular inspections

ETEK is calling for a national policy requiring regular building inspections, assessments and maintenance.

Priority should be given to public buildings, schools, hospitals, apartment blocks and other structures used by large numbers of people.

Stylianou said ETEK has repeatedly submitted proposals to Parliament and government ministers and has organised seminars and published guidance on the issue.

The organisation hopes new legislation will be approved soon. It argues that identifying structural problems early and carrying out timely repairs is the most effective way to protect both buildings and lives.

Drawing on international experience, Stylianou said that earthquake-related deaths are often caused by building failures rather than the earthquake itself.

He concluded that prevention, expert assessments, regular inspections and ongoing maintenance are the best ways for Cyprus to prepare for future earthquakes and protect its ageing buildings.

Cyprus revives affordable state building plots after 15 years

Affordable state-owned building plots are set to return to Cyprus for the first time in almost 15 years, marking a significant move to improve housing affordability and support aspiring homeowners.

The scheme, which was abolished in 2012, is being reintroduced through both the Ministry of the Interior and the Cyprus Land Development Organisation (KOAG). In a notable first, KOAG will offer residential land for sale rather than focusing exclusively on completed housing developments.

135 affordable plots planned across four districts

Speaking recently, KOAG Chairman Thiseas Ioannou revealed that the organisation is nearing the final stages of preparations to release affordable residential plots.

According to Mr Ioannou, KOAG is progressing with the subdivision of 135 plots located across the districts of Nicosia, Limassol, Larnaca and Paphos.

The remaining hurdle involves obtaining planning and building permits from the relevant District Local Government Organisations.

The proposed developments include:

  • 36 plots in Ypsonas, Limassol (awaiting building permits)
  • 44 plots in Kokkinotrimithia, Nicosia (awaiting building permits)
  • 31 plots in Timi, Paphos (pending planning approval)
  • 26 plots in Dromolaxia, Larnaca (pending planning approval)

Industry sources indicate that the plots will measure approximately 520 square metres each. Prices are expected to be set at around one-third of prevailing market values in the respective areas.

Eligibility is likely to follow the same criteria currently applied by KOAG under its affordable housing programmes. (Current criteria are Cypriot citizens as well as other EU nationals residing in Cyprus for the past five years will be eligible to apply provided they did not own a house in the five years before the application.)

Interior ministry preparing separate land initiative

Alongside KOAG’s plans, the Ministry of the Interior is also preparing a separate scheme involving the allocation of state-owned land through local authorities.

The proposal is currently undergoing legal review after draft legislation was submitted for technical examination.

Under the proposed framework, local authorities would identify areas where there is demand for affordable housing or opportunities to utilise state land. The Ministry would oversee the subdivision of plots before transferring responsibility for allocation and sale to local councils.

Eligibility criteria are expected to reflect the income and social requirements already used within Cyprus’ affordable housing programmes.

The sale price of the plots is expected to be linked to official valuations, with indications suggesting buyers could acquire land for around 25% of the value assessed by the Department of Lands and Surveys.

First affordable plots could be released in 2026

The first plots could potentially be allocated to eligible applicants during 2026, particularly under the KOAG programme, provided the necessary permits are issued without delay.

The Ministry of the Interior’s initiative is expected to take longer to reach implementation, as the relevant legislation remains under legal and technical review.

Nevertheless, the return of affordable state land represents one of the most significant housing policy developments in Cyprus in recent years and could provide a valuable route to homeownership for households struggling with rising property prices and limited housing supply.

Faster planning approvals boost Cyprus housing supply

Cyprus’ overhaul of its development licensing system is proving to be one of the most important reforms implemented in recent years, according to Interior Minister Constantinos Ioannou.

Speaking at the official dinner of the Cyprus Property Developers Association in Limassol on Wednesday evening, Mr Ioannou said the changes are helping to accelerate development projects while supporting the Government’s wider housing strategy.

According to the Minister, almost 3,000 residential units and around 1,000 apartment buildings have already received approval within 40 and 80 working days respectively under the new system. He said these results demonstrate the importance of the reform in reducing delays and enabling projects to move forward more efficiently.

Faster planning approvals support housing delivery

Mr Ioannou praised the Cyprus Property Developers Association for its long-standing contribution to one of the country’s most productive sectors. He noted that the land and property development industry plays a crucial role in modernising towns and communities, improving infrastructure, creating jobs, attracting strategic investment and strengthening Cyprus’s competitiveness.

He said Cyprus is currently undergoing a period of significant reform as it adapts to new economic, technological and environmental challenges. Within this changing landscape, the Government is focused on creating a modern, efficient and development-friendly regulatory framework that allows businesses to invest, innovate and grow with confidence.

The licensing reform forms a central part of this strategy. Through streamlined procedures, faster and more automated approval mechanisms, enhanced e-government services and the use of digital tools, the Government aims to reduce bureaucracy, speed up decision-making and improve services for residents, investors and businesses.

Housing supply remains a key priority

The Interior Minister reiterated that access to quality and affordable housing remains one of the most pressing challenges facing Cyprus and the wider European Union.

He said the Government is implementing a comprehensive housing policy designed to increase the supply of homes and expand housing options, particularly for younger people and young families.

In this effort, the property development sector remains an important partner. The delivery of new housing units and the faster implementation of high-quality, sustainable projects are helping the Government meet its housing objectives.

Digital transformation to improve public services

Mr Ioannou also highlighted ongoing efforts to modernise public services linked to land and property development. Reforms being introduced within the Town Planning and Land Registry departments are intended to create a more efficient, transparent and user-friendly public administration system.

The Government continues to invest in digitalisation, upgraded online services and organisational changes aimed at reducing administrative delays and improving the processing of applications. The objective, he said, is to provide faster, higher-quality and more reliable services.

The Minister stressed that Cyprus’ attractiveness as an investment destination is closely linked to the efficiency of public services and the State’s ability to approve and facilitate quality developments. The reforms currently being implemented are intended to strengthen the country’s appeal to both domestic and international investors.

He added that the Government views the private sector as a key partner in achieving national goals related to the green transition, energy-efficient buildings, smart cities, technological innovation and modern construction practices.

Mr Ioannou concluded by emphasising the importance of ongoing dialogue, institutional cooperation and a shared commitment to transparency, quality and reliability. He said a relationship of mutual trust between the State and the business community is essential to ensuring long-term stability, economic growth and sustainable development.

The Minister also expressed the Government’s appreciation to all professionals working within the property development sector for their contribution to Cyprus’ economic and social progress.