Pyla: a rising star in Larnaca

Nigel Howarth
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Pyla: a rising star in Larnaca

Pyla, a mixed community with a unique administrative status, is undergoing unprecedented growth, emerging as one of Larnaca’s most desirable areas. The surge in property demand, driven by both local and international interest, has spurred rapid development across the region.

Simos Mytides, President of the Pyla Community Council, recently highlighted the area’s remarkable progress, stating that “Pyla currently has one of the highest development rates across Cyprus.” Over 1,000 residential units are under construction, with permits for a further 1,000 awaiting approval.

Among the notable projects is a €30 million complex featuring approximately 300 residential units alongside retail spaces. This is just one of many developments transforming the Republic of Cyprus-controlled areas of Pyla, where large houses and apartment buildings are being erected at a steady pace.

The population of Pyla has also grown significantly, now standing at around 8,000. Mytides attributed much of the local property demand to Greek Cypriots, who are taking advantage of government subsidies designed to revitalize border and mountain areas.

The appeal of Pyla

However, the appeal of Pyla extends far beyond local buyers. Investors from Israel, Lebanon, Ukraine, and Russia have shown substantial interest in the area, contributing to its real estate boom. Despite this influx, Mytides noted that bureaucratic inefficiencies within the District Administration Organisation have slowed development, suggesting that streamlining administrative procedures could further accelerate growth.

Despite Pyla’s impressive progress, certain prime locations remain undeveloped. For example, beachfront plots, including the site of the former Beau Rivage hotel, have yet to be transformed. Plans announced in 2023 for two hotels – a four-star and a five-star – with a combined capacity of 330 beds have not yet materialized, leaving a significant gap in the area’s tourism potential.

This delay has wider implications for Larnaca’s economy, as the proposed hotels were expected to enhance the coastal zone near the former refineries, where other major investments are planned. Without these developments, the region’s ability to attract tourists and further investment may be hindered.

Pyla’s growth underscores its rising status as a hotspot for real estate investment, but overcoming administrative challenges and completing key projects will be essential to fully capitalize on its potential. With strategic planning and efficient execution, Pyla could solidify its position as a cornerstone of Larnaca‘s future development.

Nicosia & Limassol – a tale of two cities

Nigel Howarth
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Nicosia & Limassol – a tale of two cities

Cyprus’ apartment market presents a stark contrast between Limassol and Nicosia, as highlighted by real estate analytics firm Ask Wire.

Limassol’s luxury apartment prices soar to €5 million, while Nicosia offers affordable options starting at just €50,000. Together, these cities dominate the country’s apartment sales, accounting for the majority of transactions.

Using data from the Department of Lands and Surveys (DLS), Ask Wire’s latest report analysed property transactions, asking prices, and construction activity from January 2019 to August 2024. During this period, Nicosia recorded 13,415 apartment sales worth €2.1 billion, while Limassol had 13,092 transactions totalling €5.1 billion. These figures underscore Limassol’s strength in the luxury market, with almost nine times the volume of high-value sales as Nicosia.

Limassol recorded 2,174 transactions in the €500,000 to €5 million range, valued at €2.6 billion, showcasing its appeal to wealthy foreign buyers. According to Ask Wire CEO Pavlos Loizou, the city offers property developers opportunities to meet international demand with exclusive, high-quality options. Nevertheless, Limassol also has a notable presence in the affordable segment, with 5,451 transactions in the €50,000 to €200,000 range, worth €774 million.

In contrast, Nicosia excels in affordable housing, with over 11,000 transactions in the €50,000 to €200,000 range totalling €1.3 billion. This sector is driven by local buyers and investors, solidifying the capital’s position as a cornerstone of the real estate market. Loizou highlighted the potential for mid-scale developments in Nicosia to provide stable returns for businesses and families.

The mid-range segment (€201,000 to €500,000) further illustrates the cities’ divergence. Limassol led with 5,467 transactions worth €1.7 billion, compared to Nicosia’s 2,123 transactions, valued at €577 million.

Loizou emphasized that understanding these dynamics allows developers and investors to strategically navigate Cyprus’ two largest apartment markets, leveraging Limassol’s luxury dominance and Nicosia’s affordability.

Slower growth for property market in 2025

Nigel Howarth
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Slower growth for property market in 2025

The Cyprus property market is expected to experience slower growth in 2025 following its strong post-pandemic recovery, as new challenges emerge that demand strategic responses, according to a recent industry survey.

Danos International Property Consultants and Valuers predicts moderate growth over the next two years. External factors, such as regional conflicts, are expected to pose challenges; however, these are likely to be offset by stabilizing elements within the market. Cypriot banks have indicated that high interest rates will begin to decline, which, combined with stable demand and the completion of planned construction projects, will help address market needs.

The latest survey by Danos International involved 300 participants from construction companies, real estate agencies, and banking institutions. It offers a comprehensive overview of current market dynamics, price trends, and stakeholder expectations for the coming year.

Overall, market sentiment remains cautiously optimistic. A sizeable proportion of respondents hold a positive or neutral view of current conditions, with 13% and 33% rating the market as “very positive” or “positive,” respectively. Meanwhile, 37% consider the market to be “stable.” On the other hand, 17% identified negative market indicators, though none of the participants described their outlook as “very negative.”

Property market survey respondents’ views

When looking ahead to 2025, respondents revealed a mix of optimism and caution. One-third (33%) of participants expressed optimism about the market’s prospects for the next 12 months. Another 43% anticipate that market conditions will remain stable, reflecting a belief in the market’s resilience despite emerging challenges. However, 24% of respondents expressed pessimism regarding the market’s outlook for 2025. Importantly, while some concerns persist, none of the respondents indicated deep or severe pessimism.

The findings underline the need for careful planning and adaptation within the sector. As interest rates are expected to ease and construction projects align with demand, the property market may be able to maintain a degree of stability despite external pressures. Stakeholders appear prepared to navigate the challenges ahead, supported by a cautiously optimistic outlook and insights from the survey.

This optimism reflects the belief that while growth may slow, the property market is well-positioned to address shifting dynamics and remain a critical component of economic activity in the coming years.

Our top 10 stories and articles for 2024

Nigel Howarth
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Our top 10 stories and articles for 2024

Cyprus property news attracted more than a quarter of a million visitors this year and, as we approach Christmas, here are the top 10 articles and news reports that have attracted the most interest from you, our readers, over the past twelve months.

Our top 10 news stories and articles of 2024 in reverse order:

Number 10: Faster Title Deeds issuance announced – Interior Minister Constantinos Ioannou, who was speaking at a seminar spoke of “significant improvements” in the examination and issuance of property Title Deeds, which, according to him, will help reducing the average processing time to three months from the previous one to three years.

Number 9: Criminal cases filed against illegal real estate agents – The Cyprus Real Estate Agents Registration Council announced that it had filed 167 criminal cases against illegal estate agents. Its president, Marinos Kineyirou, said that “Our commitment to combat illegal real estate brokerage is ongoing, utilizing all available legal means. We are determined to address the issue of illegality, which profoundly affects the livelihoods of licensed real estate agents.”

Number 8: Trapped buyers law ruled unconstitutional – The law that enabled those who had bought property unaware that it had been used as collateral for a mortgage and/or had encumbrances lodged against it to get their Title Deeds was ruled unconstitutional unanimously by the Appeals Court. The Trapped Buyers law was suspended with immediate effect.

Number 7: Solutions prepared for trapped buyers – Interior Minister Constantinos Ioannou said that around 50 per cent of Trapped Buyers cases could be resolved in a manner which is constitutionally sound and has the green light from the legal service. He said there are 9,497 trapped buyers’ applications, of which 5,417 have no title deed, that will remain pending until authorities can figure out whether one can be issued or not. We await developments and what is going to happen to the 50% that cannot be resolved.

Number 6: New Urban Amnesty Plan approved – Although not an amnesty in the true sense of true sense of the word (pardon), this allows people to pay compensation to legalize small-scale planning infringements. Among other things, these include covering verandas and balconies and building too close to the property’s boundary.

Number 5: The ripple effect of Limassol’s real estate – An article explaining how once an area becomes desirable, real estate prices rise – and this spreads to adjacent areas, which also become more desirable and prices increase,

Number 4: Victim of the title deeds nightmare – One of many thousands of people who cannot get their Title Deed due to severe planning irregularities and other issues. (The so-called ‘Urban Amnesty’ will be of no use to him as its scope is very limited.)

The solution to this gross injustice is for the planning authority to impose fines on the ‘criminal’ (i.e. the developer responsible for the planning infringements) sufficient to pay for the remedial work required to issue a clean ‘Title Deed’, plus a further amount to dissuade the ‘crook’ from repeating his misdemeanours.

The top 3 of my top 10 stories and articles

It’s not surprising that the top three stories in my top 10 relate to the most important issues facing the property market: the fate of the Trapped Buyers, the new jointly-owned building bill and the associated issue of their swimming pools.

Number 3: Impact of the recent court’s ruling on “Trapped Buyers” in Cyprus – The Appeal Court ruling and the decision of the authorities to stop reviewing existing applications and accepting new applications, pose a significant setback for trapped buyers in Cyprus. Parliament needs to act swiftly to address these issues and find a fair solution that protects both buyers and creditors.

Number 2: Cyprus’ antediluvian swimming pool laws set to change – Although the planned new law does away with the need for lifeguards on complexes comprising less than five residential units, it does absolutely nothing for larger complexes. Other EU counties have introduced EU Standard 14288-2 Swimming pools – Part 2: Safety requirements for operation, but for reasons best known to themselves, Cyprus wants to adopt a ‘home-grown’ solution.

Number 1: What’s in the new jointly-owned buildings bill in parliament? – Considering I published this article three weeks ago, the amount of interest shown by readers has been immense. Some of the changes being discussed by MPs include changes to the calculation of communal fees, owners participating in general meetings using sound, video and audio systems and may vote using those systems, members of the management committee must be owners – and a separate service will be established to oversee compliance with the law.

Music video of the year

This year I’ve chosen a video of the famous aria “E lucevan le stelle” (And the stars were shining) from Puccini’s Tosca sung by Plácido Domingo.

In this aria, the character Mario Cavaradossi, a painter in love with the singer Tosca, sings while he waits for his execution on the roof of Castel Sant’Angelo.

May I take this opportunity to wish you all a Merry Christmas
and a Happy and Healthy 2025

Charges in Golden Passport case may be withdrawn

Nigel Howarth
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Charges in Golden Passport case may be withdrawn

Two charges relating to the Al Jazeera undercover investigation into Cyprus’ infamous ‘Golden Passport’ scheme, involving former House President Demetris Syllouris, former AKEL MP Christakis Giovani, and Giovani’s company director Antonis Antoniou remain uncertain.

The case was brought before the Nicosia Criminal Court yesterday for procedural planning, with all three defendants attending with their legal representatives.

During the session, both the defence and prosecution agreed to continue collaborating on establishing agreed facts and finalising witness lists to streamline the trial process. Prosecutor Haris Karaolidou informed the court that two of the charges hinge on the testimony of a key witness currently residing abroad. This testimony, she explained, is considered crucial to the prosecution’s case.

However, the prosecutor cautioned that if the witness cannot be located before the next scheduled hearing on January 13, 2025, the charges dependent on this testimony may be withdrawn. Despite the witness’s absence from the Republic of Cyprus, Karaolidou noted that she has expressed a willingness to provide testimony via videoconference. This option remains open, pending further developments regarding the witness’s availability and logistical arrangements.

Both legal teams are now focused on progressing the case in preparation for the January hearing. They aim to finalise the list of witnesses and reach an agreement on the facts of the case. This cooperative effort seeks to ensure that the trial can begin efficiently and without unnecessary delays.

The ‘golden passports’ scandal, initially brought to light by Al Jazeera in 2020, revealed systemic abuse of Cyprus’ citizenship-by-investment programme.

The exposé led to widespread criticism, resulting in the programme’s eventual termination and prompting legal action against key figures, including Syllouris and Giovani. The allegations continue to cast a shadow over Cyprus’ political and financial systems, with the upcoming trial seen as a critical step in addressing the controversy.

The next hearing on January 13, 2025, is expected to determine the fate of the unresolved charges. Should the key witness provide testimony as indicated, the case will proceed in full. If not, the prosecution may face significant challenges in sustaining the charges. Until then, both sides remain committed to laying the groundwork for what is anticipated to be a closely watched legal proceeding.

Man found guilty of property fraud jailed for seven years

Nigel Howarth
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Man found guilty of property fraud jailed for seven years

A 62-year-old man has been jailed for seven years after being found guilty of fraud after promising individuals to build houses that were never built.

The sentencing took place on Monday after the man was found guilty of taking substantial amounts of money under false pretences.

The case began when one of the victims filed a complaint with the police, leading to the man’s arrest. According to the complaint, the accused had posed as the owner of a construction company and convinced the victim to hand over €128,500 in September last year. The money was intended for the construction of five houses on a plot of land in the Famagusta district. However, despite receiving the payment, the man failed to deliver on his promises. No progress was ever made on the supposed construction project, and the houses remained unbuilt.

The fraud came to light in February when the victim, having seen no signs of development, realized that he had been deceived and alerted authorities. Following a thorough investigation, it was revealed that the accused had never intended to build the promised houses and had misrepresented himself as a credible business owner.

During the court proceedings, the prosecution presented compelling evidence that the man had deliberately taken advantage of his victims’ trust to extract large sums of money. The court emphasized the severity of the crime, highlighting the significant financial and emotional distress caused to the victims. It was noted that such offenses undermine public trust in businesses and institutions, warranting a strict penalty to deter others from engaging in similar fraudulent schemes.

In delivering the sentence, the judge underscored that the accused had demonstrated no remorse for his actions. The seven-year prison term was imposed to reflect the gravity of the offense and to serve as a warning to others considering similar fraudulent activities. The court stressed that financial fraud, particularly in the construction sector, can have far-reaching consequences, not only for individuals but also for the broader community.

The case has drawn attention to the importance of due diligence when engaging in financial transactions, particularly in the real estate and construction industries. Authorities have urged the public to verify the credentials of companies and individuals before making payments or entering into agreements to prevent falling victim to such scams.

The convicted man now faces the consequences of his actions, serving a lengthy sentence for defrauding individuals out of their hard-earned money.

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