Jointly-owned building law scandal: how much longer will it take?

Nigel Howarth
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Jointly-owned building law scandal: how much longer will it take?

Cyprus property owners are facing another dose of parliamentary déjà vu as MPs reopen long-running discussions over jointly-owned buildings, with proposed legislation dating back years still nowhere near being agreed and approved.

Six pieces of legislation are before the House of Representatives’ Interior Affairs Committee, covering building management, unpaid service charges and the sale and transfer of apartments and other units in jointly-owned developments..

For a property market that depends on clear rules, the length of time this has taken cannot be ignored. One proposal dates back to 2019, while other measures were proposed in 2022 and 2023.

Yet committee chairman and AKEL MP Aristos Damianou says discussions are effectively starting “from zero”.

There is still no firm timetable for completing the work.

That is a remarkable position for legislation intended to deal with everyday problems in apartment buildings. Owners, buyers, management committees and property professionals have been left watching the same issues circulate through Parliament while a definitive framework remains out of reach.

Jointly-owned building law back to ‘zero’

Damianou told StockWatch that the committee would seek a “golden mean” between the different positions.

But the admission that discussions are restarting from scratch underlines just how little the years of debate have delivered.

The objective is straightforward: establish workable rules for jointly-owned buildings and settle how issues such as unpaid contributions should be handled, a long-standing problem that’s been around for decades.

What the legislation would change

The six measures include a 2023 bill on managing jointly-owned buildings, a 2019 proposal covering jointly-owned buildings, two 2023 amendments on property sales and transfers, and two 2022 proposals concerning unpaid charges.

One of the central questions is whether a property carrying unpaid service charges should be allowed to change hands.

Under proposed 2023 amendments, a certificate from the relevant management committee could be required before a sale or transfer proceeds, confirming that outstanding charges have been paid.

Another proposal would give committees explicit authority to issue certificates confirming that contributions have been paid or formally regulated.

A separate proposal from MP Nikos Georgiou would offer greater flexibility by allowing a transfer where the debt has been cleared or a repayment plan has been agreed.

More power for management committees

The changes could give management committees a much stronger role in property transactions.

Their existing responsibilities include managing shared areas and collecting contributions from owners.

Under the proposed system, their certification could become an important part of buying and selling a flat where service charges are outstanding.

That could strengthen the recovery of unpaid contributions and help protect the finances of jointly-owned buildings.

The vital missing law amendment

However, all the discussions about the new law completely miss the most critical issue: if Management Committees do not have the funds available when essential maintenance, insurance and repairs are due, then repayment schemes and other plans are nothing more than a sticking plaster on a gaping wound. Management Committees need the money immediately it’s needed, not at some later date.

Everyone’s having their say

A wide range of organisations has been invited to contribute, including government departments, the Land Registry, Law Office, professional bodies, banks, property owners’ groups, managers and developers.

Broad consultation is important when legislation affects such a large part of the property market.

But consultation cannot become an end in itself.

With proposals stretching back to 2019 and discussions now restarting from “zero”, the obvious frustration is that Cyprus is still debating the rules rather than operating under them.

Cyprus property: major shake-up to jointly-owned buildings

Nigel Howarth
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Cyprus property: major shake-up to jointly-owned buildings

The Cyprus government is committed to transferring responsibility for managing jointly-owned buildings from the Department of Lands and Surveys to the District Local Government Organisations (DLGOs).

The move could have a direct impact on apartment owners and others in jointly-owned developments.

New system for jointly-owned buildings

For the owners of property in jointly-owned buildings, one of the biggest changes will be a new system for managing and supervising the buildings. The DLGOs are expected to take greater responsibility for overseeing management committees and ensuring buildings are properly managed.

The new system is also expected to be funded through fees paid by property owners and other users. The Interior Ministry has agreed that the proposed fees should be reviewed to reflect the actual cost of providing the service and ensure its financial sustainability.

This means owners could face new or revised charges once the system is fully operational. The final level of fees has yet to be established, with the DLGOs’ cost assessments expected to inform any review.

Electronic property records planned

The changes could also improve access to information about jointly-owned properties. The government plans to create an electronic register of jointly-owned buildings, linking information held by the Department of Lands and Surveys with records held by the DLGOs.

A connection between the new system, the Land Information System and the IPPODAMOS planning platform should allow ownership and property information to be updated more efficiently.

For owners, this could eventually mean a more streamlined way of dealing with property records and building management.

Two-year transition period

The government expects a transition period of up to two years. During this time, the DLGOs will develop the necessary systems, establish procedures and recruit and train staff before assuming full responsibility.

Owners of property in jointly-owned buildings should therefore not expect an immediate change. The transition is intended to give authorities time to put the new framework in place and reduce disruption when responsibility formally moves.

The government has ruled out reversing the transfer despite concerns raised by the DLGOs. It argues that the current system has weaknesses, including limited supervision and enforcement tools, and that managing shared buildings requires a different organisational structure.

Impact on owners

For owners, the reform could ultimately mean greater oversight and clearer administration of jointly-owned buildings, but potentially at the cost of additional or revised fees. The precise financial impact will depend on the final fee structure and how the new system operates once fully implemented.

Who bought property in Cyprus? August 2026 deals revealed

Nigel Howarth
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Who bought property in Cyprus? August 2026 deals revealed

Earlier today, the Department of Lands and Surveys published its latest analysis of Cyprus property sales, showing who bought property and where across the island.

Domestic buyers remained the largest group in August. Cypriot buyers accounted for 659, or 53%, of property sales contracts deposited at Land Registry offices during the month.

EU citizens accounted for 197 contracts, or 16%, while non-EU citizens accounted for 385, or 31%.

Property sales to the domestic market

Property sales to Cypriot buyers rose 2% in August compared with the same month last year. However, the performance varied sharply between districts.

Sales in Famagusta fell 19%, while Limassol recorded a 16% decline and Paphos was down 3%. These falls were more than offset by strong growth in Larnaca, where sales jumped 47%, and Nicosia, where they rose 7%.

Domestic (Cypriot) contracts of sale deposited – 2025/2026 Comparison (Aug)

Property sales to EU citizens

Property sales to EU citizens rose 27% in August compared with August 2025.

Nicosia was the only district to record a fall, with sales down 6%. The other four districts all reported growth.

Limassol staged a strong recovery after sales fell 32% in July. Sales to EU citizens surged 89% in August compared with the same month last year.

Paphos recorded an 11% increase, while Famagusta and Larnaca posted gains of 10% and 6% respectively.

Contracts deposited by EU Nationals – 2025/2026 Comparison (Aug)

Property sales to non-EU citizens

Property sales to non-EU citizens rose 19% in August compared with the same month last year.

Limassol was the only district to record a fall, with sales down 6%. Paphos recorded the strongest growth, with sales rising 40%.

Nicosia followed with a 33% increase, while sales in Larnaca and Famagusta rose 31% and 7% respectively.

Contracts deposited by non-EU Nationals – 2025/2026 Comparison (Aug)

Property sales – year to date

Domestic sales

During the first eight months of 2026, every district recorded higher domestic property sales than in the same period last year.

Limassol led the market, with sales up 19%. Famagusta followed with growth of 7%, while Nicosia and Larnaca both recorded increases of 5%.

Paphos saw the smallest rise, with sales up 3%.

Domestic (Cypriot) contracts of sale deposited – 2025/2026 Comparison

EU sales

Year-to-date figures show that demand from EU buyers continues to strengthen. Sales rose 23% during the first eight months of 2026 compared with the same period last year.

Paphos remains the strongest-performing district, with sales to EU buyers up 42%. Larnaca followed with growth of 33%, while Limassol recorded a 9% increase and Nicosia rose 8%.

Famagusta was the only district to record a decline, with sales down 2%.

Contracts deposited by EU Nationals – 2025/2026 Comparison

Non-EU sales

So far this year, property sales to non-EU citizens have been almost twice as high as sales to EU citizens. Every district has recorded an increase, with overall sales to non-EU buyers up 19%.

Paphos, Larnaca and Famagusta each recorded a 21% increase in sales. Limassol followed with growth of 16%, while Nicosia recorded a 12% rise.

Contracts deposited by non-EU Nationals – 2025/2026 Comparison

Overseas buyers’ trends

Combined purchases by EU and non-EU citizens accounted for 47% of all property sales during the first eight months of 2026.

Demand from overseas buyers remains particularly strong in Paphos. EU and non-EU citizens bought more than twice as many properties as Cypriots, with 1,871 sales compared with 783.

Larnaca is also proving increasingly attractive to non-EU buyers, highlighting the changing profile of overseas demand across the island.

Market Segment Summary Analysis 2026 Year to Date

Year-to-date sales performance since 2008

The chart below shows the year-to-date performance of each market segment since 2008.

The Department of Lands and Surveys only began reporting separate figures for EU and non-EU buyers in 2018. Before then, all foreign purchases were grouped together under the category of overseas sales contracts.

Cyprus property sales August 2026

Cyprus housing crisis: supply, rentals & new government measures

Nigel Howarth
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Cyprus housing crisis: supply, rentals & new government measures

The Cyprus housing crisis remains a major political and economic issue, with the government, property developers and professional bodies proposing different measures to increase housing supply, control costs and make better use of existing properties.

The government has introduced more than €100 million in housing measures, including an interest-rate subsidy for young couples taking mortgages of up to €400,000.

Finance Minister Makis Keravnos says housing policies need time to produce results but argues that a lasting solution depends primarily on increasing supply.

Although construction activity is strong because of high demand, the number of available homes remains insufficient.

Rent controls, Build-to-Rent and long-term rentals

The Cyprus Property Developers Association (CPDA) has cautioned against relying mainly on rent controls. Its president, Yiannis Misirlis, accepts that limiting sharp rent increases can protect tenants, but warns that strict or permanent controls could discourage investment in rental housing.

The CPDA argues that Cyprus needs to increase the supply of homes for long-term rent. One proposal is a Build-to-Rent framework to encourage institutional and private investors to develop rental properties. Bringing empty and underused homes back onto the market through renovation incentives could also increase supply.

Misirlis also supports faster planning and licensing procedures, alongside stronger dispute-resolution mechanisms, contractual security and guarantees for vulnerable tenants. The aim is to create a rental market that is both affordable for tenants and financially viable for landlords.

Renovate – Rent scheme faces calls for major reform

The Cyprus Scientific and Technical Chamber (ETEK) argues that the housing response should not rely solely on new construction because building new homes requires time, land, infrastructure, financing and administrative approvals.

Instead, ETEK wants Cyprus to make better use of its existing housing stock, particularly vacant or underused properties. It has called for a redesign of the Renovate – Rent scheme, which was intended to bring empty homes back into the long-term rental market.

Around 920 property owners registered when the scheme was announced in 2024, but only 84 applications were submitted, including rejected applications. Grants awarded amounted to approximately €1.2 million, compared with the original €25 million budget.

ETEK proposes requiring owners to prove that a property has been vacant for a specified period, renovate it and return it to the market. Properties could then be required to remain rented for at least three years. Landlords would retain greater freedom to choose tenants and set rents, while government oversight would focus on confirming vacancy, renovation and the establishment of a long-term tenancy. Grants can currently reach €40,000.

ETEK has also proposed wider reforms, including a digital identity for Cyprus’ building stock, targeted taxation of vacant properties and unused plots, and a single body responsible for housing policy.

Construction worker shortage adds to housing pressure

Meanwhile, the government is exploring ways to recruit construction workers from India and Egypt to address a growing labour shortage. The Cyprus Employers and Industrialists Federation (OEB) estimates that the construction sector needs around 5,000 additional workers, ranging from labourers and drivers to skilled technicians and engineers.

Employers say recruiting workers from outside the EU involves additional immigration procedures, while the departure of some Syrian workers under the government’s repatriation scheme has further increased pressure on the industry.

Overall, the Cyprus housing crisis is driven by insufficient supply, strong demand, financing costs, planning constraints, rental-market pressures and underused properties. Government measures, rental-market reforms, better use of vacant homes and efforts to address construction labour shortages will all be needed to improve housing availability and affordability.

 

Cyprus new-build property sales reach €1.15bn in H1 2026

Nigel Howarth
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Cyprus new-build property sales reach €1.15bn in H1 2026

During the first half of 2026, 3,594 off-plan apartments and houses were sold across Cyprus, with a combined value of €1.149 billion, according to Landbank Analytics. That works out at an average transaction value of €319,618.

The picture varied quite a bit from one district to another. Nicosia recorded the highest number of sales, while Limassol generated the largest total sales value. Paphos, meanwhile, recorded the highest prices for new-build houses.

Apartments dominate Cyprus’ new-build property sales

Apartments remained by far the most popular choice, accounting for 82.8% of all new-build transactions. In total, 2,977 apartments were sold for €810.6 million.

Houses accounted for the remaining 617 sales, worth a combined €338.1 million.

While houses made up just 17.2% of transactions, they accounted for 29.4% of the market’s total sales value, reflecting their higher average prices.

The bulk of activity was still concentrated in the more affordable and mid-market segments. Some 2,982 properties – around 83% of all transactions – were sold for less than €400,000.

At the other end of the market, only 103 properties, or 2.9% of total sales, were valued at more than €1 million.

How Cyprus’ districts performed

Nicosia recorded 1,063 transactions worth €232.9 million, with particularly strong activity in Lakatamia, Strovolos and Latsia.

Limassol was close behind in terms of sales volume, recording 1,050 transactions. However, it comfortably led the country in terms of total sales value, reaching €435 million. Most of the activity was concentrated in Limassol municipality, Agios Athanasios and Germasogeia.

Larnaca recorded 883 sales worth €187.6 million, with apartments making up around 90% of transactions. The busiest areas were Aradippou, Larnaca municipality and Livadia.

Paphos recorded 497 transactions worth €258.2 million. It also had the highest median property price in Cyprus, at €360,000.

The difference was even more noticeable when it came to houses. The median price for a new-build house in Paphos reached €570,000, underlining the district’s strong position in the higher-end residential market.

Famagusta recorded 101 transactions worth €35 million, with Paralimni accounting for the highest level of activity.

Cyprus’ property market is moving at different speeds

According to Andreas Christoforides, chief executive of the Landbank Group, the new-build market is showing quite different characteristics depending on the district.

In Nicosia and Larnaca, the market is being driven largely by affordable and mid-market apartments. Limassol continues to lead when it comes to overall sales value, while Paphos stands out for its high-specification houses.

The fact that 83% of transactions were below €400,000 is also significant, Christoforides said. It suggests that the core of the market is being supported by genuine housing demand as well as investment activity.

Cyprus property owners face tougher rules on dangerous buildings

Nigel Howarth
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0
Cyprus property owners face tougher rules on dangerous buildings

Cyprus is preparing to give authorities stronger powers to tackle dangerous buildings, with property owners potentially facing repair bills, fines and even demolition orders.

The proposed legislation would overhaul the rules governing unsafe buildings and give District Local Government Organisations (DLGOs) wider enforcement powers.

The move comes as local authorities warn that the scale of the problem is growing. In Larnaca alone, officials say there are 1,087 potentially dangerous buildings.

The estimated cost of making 351 of those properties safe is about €7 million.

The figures underline the financial challenge facing Cyprus as it attempts to deal with ageing and deteriorating buildings.

Cyprus property owners could face major repair costs

Under the proposed rules, buildings would be split into two categories: ‘potentially dangerous’ and ‘dangerous’.

A property showing serious deterioration or structural damage could be classified as potentially dangerous before it becomes an immediate threat.

Owners could then be ordered to appoint a qualified professional and carry out repairs or other preventive work.

Wider powers for authorities

For buildings already considered dangerous, authorities would have much wider powers. These could include sealing or fencing off the property, removing structural elements and ordering partial or complete demolition.

In serious cases, residents could also be forced to leave. Where there is an immediate risk of collapse, the proposed evacuation period could be as long as 14 days.

If an owner fails to act, authorities could cut off water supplies and request the disconnection of electricity.

They could also carry out the work themselves and recover the cost from the owner.

The bill would allow those costs to be registered as a charge against the property. Owners could repay the amount over as many as 36 monthly instalments.

Fines set to rise sharply

Some existing fines would double from €10,000 to €20,000 and from €20,000 to €40,000. New fixed penalties would include €2,000 for failing to fence off a dangerous building and €1,000 for failing to seal one.

An administrative fine of up to €40,000 could also be imposed where an owner ignores a formal notice and fails to carry out required safety measures.

The Ministry of Interior has backed the legislation. But it has made clear that responsibility for maintaining a property remains with its owner.

The message is significant for homeowners, landlords and apartment owners: local authorities are not expected to take over the cost of routine property maintenance.

DGLO funding plan proposed

While supporting tougher enforcement, DLGOs say stronger powers will mean little without the money and practical tools to use them.

Nicosia DLGO chairman Constantinos Yiorkatzis has proposed a state-backed €20 million funding mechanism.

Under his plan, the government would provide €2 million a year for ten years in loans to DLGOs.

The organisations could use the money to carry out urgent works and recover the costs from property owners. The funds would then be repaid to the state at a low interest rate.

Yiorkatzis also called for closer co-operation between the Ministry of Interior and the Deputy Ministry of Social Welfare.

That would be particularly important where vulnerable residents have to leave unsafe homes and need emergency support.

The debate highlights a difficult balance for policymakers. Authorities want owners to meet their responsibilities, but some owners may simply lack the funds to make major structural repairs.

Could Cyprus introduce a ‘MOT’ for buildings?

Regular building inspections are also emerging as a major part of the debate.

The Cyprus Association of Civil Engineers has backed inspections similar to a ‘MOT for buildings‘. The Cyprus Association of Valuers and the Property Developers Association have also supported periodic checks and state assistance for repair costs.

Valuers have warned that potentially dangerous buildings could number in the thousands across Cyprus.

For the property market, the implications could be significant.

Regular inspections could expose previously unidentified defects and bring major repair liabilities into sharper focus. That could affect property values, transactions and the willingness of buyers to purchase older apartments.

The issue is particularly complicated in jointly owned-buildings. A small number of owners can block essential works, leaving other owners exposed to the consequences.

Mortgage lenders and buyers could also face uncertainty where a property is subject to a mortgage and authorities need to intervene.

The valuers’ association has called for clearer rules on how the government and DLGOs can act in these cases.

The Cyprus Property Owners Association (KSIA) has welcomed the direction of the legislation but said owners must have practical ways to finance improvements.

Safeguards before demolition demanded

MPs have also raised concerns over public buildings, schools, legal challenges and the treatment of owners who comply with the rules.

One key question is whether responsible owners could end up paying for neighbours who refuse to co-operate.

MPs warned that the current system can result in legal proceedings involving all owners in a building, even where some have done everything required of them.

Public buildings are another concern. MPs questioned what would happen if a government building or school were declared dangerous, particularly where it lacks a certificate of suitability.

There are also concerns about legal challenges to evacuation and demolition orders.

Some MPs have argued that court orders should be required in certain circumstances, alongside a clear mechanism for owners to challenge decisions.

The government now faces pressure to strike a balance between faster enforcement and proper legal safeguards.

Interior Committee chairman Aristos Damianou said the different proposals from the Legal Service and DLGOs should be worked through by the Ministry of Interior.

The issue is expected to return to the committee towards the end of September, with MPs signalling their intention to move towards a swift vote.

For Cyprus property owners, the direction of travel is becoming clear: ignoring serious building defects could soon become considerably more expensive.

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