In an effort to revamp land development and construction processes across the island, Interior Minister Constantinos Ioannou has unveiled a series of legislative changes aimed at streamlining procedures and enhancing collaboration between public and private sectors.

During the 15th Nicosia Economic Congress, Minister Ioannou highlighted significant initiatives, such as plans to simplify permit fee structures, a bill addressing jointly-owned buildings, and legislation aimed at facilitating urban land redistribution.

“Our aim is to enhance the efficiency of interactions between citizens, businesses, and the government,” he stated. “We are striving for a construction and development sector that is sustainable, resilient, and capable of thriving.”

A major highlight is the simplification of the building permit process. Ioannou elaborated on the fast-track licensing system that delegates much of the approval responsibility to private sector planners. This system has already facilitated the submission of 756 residential permits and 56 applications for apartment blocks.

“This reform is our most significant to date,” Ioannou noted, emphasizing that the process considerably reduces approval times and eases the administrative load on local authorities.

To support these efforts, the ministry has enhanced district self-governance organizations (EOAs) with increased staff by 24%, the approval of over 300 new positions, and more than doubling the number of employees dedicated to licensing.

Since the reforms commenced, a total of 22 measures have been introduced to simplify processes, aiding local authorities in standardizing their operations and enhancing efficiency.

Further reforms are anticipated, with a proposal to simplify permit fee structures set to undergo public consultation by May, with Cabinet approval expected in June.

Minister Ioannou also emphasized two crucial bills: one concerning jointly-owned buildings, currently under legal review, and another addressing urban land redistribution, already submitted to the House of Representatives. The latter seeks to unlock development potential in landlocked plots, a persistent challenge for property developers.

He reiterated the government’s dedication to working closely with the private sector. “We have established a cooperative framework with all organized entities in the land development and construction industry,” he stated. “By addressing their concerns, we can offer practical, targeted solutions.”

Despite progress, Ioannou acknowledged that challenges remain, including revisions to local development plans and an overhaul of the land registry.

The reforms were met with a cautiously optimistic response from real estate professionals at the event, who didn’t hesitate to express ongoing concerns.

Platon Eliades from the Lanitis Group (Cybarco) praised the government’s direction but mentioned delays due to local government restructuring. He also addressed the rising property prices that challenge buyers and commended government efforts to improve access through housing schemes.

Michael Leptos of the Leptos Group noted the encouraging increase in residential permits but expressed concern over the stagnation of large-scale projects. He called for consistent policy and deeper collaboration between government and private sectors, particularly on infrastructure.

Melina Rafti from Korantina Homes described the backlog of permits, especially for 2021 and late-2023 applications, as a “cancer” and suggested that older applications could be handled by private planners to alleviate local authorities. Although Ioannou stated that such decisions lie with individual EOAs, Rafti emphasized the importance of supportive infrastructure like marinas and cultural venues to attract real estate investment.

Despina Chrysosthou from Cyfield supported fast-track licensing but stressed the need for quicker titling procedures. She praised the Cyprus Land Development Corporation’s affordable housing program as the most effective to date and pointed out labor shortages as a significant issue. Chrysosthou welcomed the Labour Ministry’s new licensing scheme for third-country nationals but advocated reevaluating Greek language requirements in specific professions.

Lastly, she proposed reexamining urban zoning laws, suggesting lower coverage ratios and allowing greater building heights in city centers to foster revitalization and increased population density.

As Cyprus advances in modernizing its land development framework, a shared vision of efficiency, sustainability, and growth is evident from both the government and private sector. Although challenges remain, the mutual willingness to collaborate promises long-term progress.

With legislative drafts moving forward and new systems already making a difference, the groundwork is set for a more responsive, investor-friendly property sector designed to harmonize robust development with effective governance.

Russian property developer BBF plans to undertake a €189 million development project on the site of the historic KEAN soft drinks factory in Limassol.

Located in the Agios Athanasios region, this project will feature five high-rise buildings offering a blend of office and residential spaces. Additional facilities will include underground parking, retail and commercial spaces, and a central public plaza.

As outlined in the company’s submitted environmental impact assessment, the venture will consist of four residential buildings and one office tower.

The development will cover a total area of 46,162 square meters, with 40,768 square meters designated for building, accommodating public infrastructure needs.

Buildings Exceeding 80 Meters in Height

Positioned on the southeast and southwest corners, Buildings 1 and 2 will each feature a ground floor and 19 storeys of apartments, reaching heights of approximately 84 and 85 meters. The ground floors will house retail outlets and leisure facilities, with parking spanning the basement and semi-basement levels.

Building 3, situated on the eastern side, is designated for office use. It will have a ground floor and 17 upper floors, reaching a height of about 71.15 meters, with parking also in basement and semi-basement levels.

Buildings 4 and 5 will be positioned in the northwest and northeast sections. Building 4 will rise 13 floors above the ground floor, standing around 58.25 meters tall, while Building 5 will have 9 floors and reach approximately 39.15 meters. Both will incorporate parking facilities similar to the others.

Additionally, a communal structure between buildings 3 and 5 on the east will serve as a community hub for residents, with a height not exceeding 10 meters.

Three-Phase Development

The entire project is projected to conclude over six years, consisting of three phases.

Phase 1: Commences in January 2026, concentrating on the residential components, and is anticipated to wrap up by 2029.

Phase 2: Entails the erection of the office building, slated for completion by December 2029.

Phase 3: Encompasses the remaining residential structures, targeted for completion by December 2031.

During an environmental inspection, 16 types of vegetation were documented on the site, such as cypress trees and ornamental plants like oleanders. An olive grove with 150 olive trees, varying in age, was also identified in the northeast corner.

The area is classified under three urban planning zones: commercial, tourist, and mixed residential. The broader vicinity includes both residential and tourist developments, along with other ongoing construction projects.

The Chairman of the Parliamentary Committee on Legal Affairs, Justice, and Public Order, Mr. Nicos Tornaritis, has reached out to the leaders of the Cyprus Banks Association and the Association of Credit Acquiring Companies, known as Vulture Funds, urging them to halt property repossessions, auctions, and recoveries that affect individuals referred to as “Trapped Buyers.”

This request comes in the wake of a Court of Appeal decision from July last year, which declared that the existing law safeguarding these buyers is unconstitutional. Thousands are impacted — individuals who have paid the full amount for their properties but have not received the Title Deeds, often due to the sellers having mortgages on the same properties.

Mr. Tornaritis highlighted that the Committee is currently reviewing this issue and is swiftly working on creating a new law that will provide a fair and lawful resolution. In the interim, he is appealing to banks and credit firms to refrain from any aggressive actions to prevent further harm to these vulnerable buyers.

“This issue is of utmost seriousness and must be addressed promptly and responsibly,” Mr. Tornaritis remarked, emphasizing his expectation for a quick written response from the involved organizations.

These buyers find themselves in a predicament through no fault of their own. They have fully paid for their homes yet do not hold legal ownership, facing the potential loss of their properties due to legal and financial complications beyond their control.

The call to pause property repossessions is a temporary but crucial measure aimed at protecting these individuals while a suitable legal solution is in the works. It also highlights the necessity for broader reforms in Cyprus’s property laws to prevent similar issues in the future.

It is heartening to note that the government of Cyprus has heeded the call to prevent banks and Vulture Funds from targeting trapped buyers.

In the last quarter of 2024, residential property prices in the eurozone saw a 4.2% rise compared to the same period the previous year. This data was shared by Eurostat, the European Union’s official statistics office.

Across the broader European Union, the price increase was even steeper, reaching 4.9% year-over-year when compared to the end of 2023. This uptick marks a noticeable shift from the inflation rate seen in the third quarter of 2024, during which the eurozone reported a 2.7% rise, while the EU as a whole experienced a 3.9% growth in house prices.

From a quarterly perspective, between the third and fourth quarters of 2024, property values in the eurozone went up by a more moderate 0.6%, with the EU witnessing an increase of 0.8%.

Focusing on EU Member States individually, most countries experienced rising property prices over the year. Out of the nations with available data, twenty-four reported an annual growth in housing costs.

The most remarkable surges were seen in Bulgaria, where there was an astounding 18.3% increase, followed by Hungary at 13.0%, and Portugal at 11.6%. However, not all countries matched this upward trajectory. Both France and Finland noted yearly decreases of 1.9%.

Reviewing the comparison with the previous quarter, eighteen Member States saw an increase in prices, while six observed a decline.

Malta and Finland reported no change on a quarterly basis. The most significant quarter-on-quarter drops occurred in France and Cyprus, both recording a 1.0% decrease, and in Estonia, where prices fell by 0.7%.

In contrast, Slovakia experienced the most substantial quarterly growth at 3.6%, with Slovenia and Portugal following, showing increases of 3.1% and 3.0%, respectively.

These statistics suggest a continued upward trajectory in the EU housing market, although there are considerable differences among Member States, reflecting the diverse economic environments and dynamics of housing markets throughout the region.

The Cyprus Land Development Corporation (KOAG) has introduced new affordable apartments, each spanning 75 square meters, priced at €124,000.

This was unveiled on Tuesday in a joint media briefing by Interior Minister Constantinos Ioannou and KOAG Chairwoman Elena Kousiou-Hadjidemetriou, focusing on the organisation’s active housing projects.

Minister Ioannou announced that KOAG plans to build 220 homes this year. Development work on 135 plots in Nicosia, Larnaca, Limassol, and Paphos is set to commence in the last quarter.

He also mentioned that €12 million, a sum likely to rise, will be invested in KOAG’s special fund, aided by compensation incentives for land developers. An additional €9 million is to be generated through governmental urban planning incentives, with another €5 to €6 million expected from urban planning amnesty programs, which have already garnered about 1,200 applicants.

Chairwoman Kousiou-Hadjidemetriou elaborated on KOAG’s three-pronged strategy, which includes using 135 plots to establish 247 housing units, constructing a further 213 units backed by government funds, and collaborating with the private sector to create affordable housing options for sale and rent.

The Director-General of KOAG highlighted that since its inception in 1982, the organization has offered housing assistance to nearly 5,000 families. This includes help for around 1,000 families through the low-income housing initiative and support for 2,500 families via the moderate-income scheme.

Minister Ioannou also discussed forthcoming changes to housing guidelines, noting a proposal under review that could permit a 15% reduction in the floor area for all apartment types. However, critics argue that this downsizing may not proportionally lower the selling prices.

The Minister further mentioned anticipated Cabinet decisions aimed at enhancing the housing setup. This includes eliminating the requirement for developments in tourist zones to comply with set percentages for various apartment types, aligning these regulations with existing ones in other residential areas.

These measures are part of the government’s comprehensive approach to improve housing affordability and availability, especially for middle- and lower-income households.

In February 2025, the luxury property market in Cyprus experienced a notable resurgence, as documented in a report published by real estate analytics company Ask Wire. The 50 largest property deals on the island amounted to a total of €64.8 million during this month.

The top ten most costly transactions alone summed up to €36.75 million, predominantly driven by Limassol, which accounted for eight out of these ten transactions, collectively valued at €26.55 million. The other two transactions took place in Paphos, bringing in an additional €10.2 million.

The most significant transaction for the month involved the sale of a field in Limassol’s Tserkezoi area for €9.4 million. This was followed by a €7.6 million deal for a mixed-use property in Kato Paphos and the €3.7 million sale of an apartment building in Potamos Germasogeias, Limassol.

Other notable deals included a house in Kouklia, Paphos, sold for €2.6 million; two fields in Agios Athanasios–Agios Stylianos, Limassol, that fetched €2.55 million and €2.5 million respectively; and a house in Germasogeia–Agia Paraskevi sold for €2.3 million. Additionally, two other fields in Limassol, located in Kato Polemidia–Archangel Michael and Agios Athanasios–Agios Stylianos, were sold for €2.3 million and €2.1 million, respectively. The tenth largest sale was a house in Potamos Germasogeias, Limassol, with a price tag of €1.7 million.

Analyzing the performance by region, Limassol led with transactions amounting to €29.2 million, representing 45% of the national total. Paphos followed with €18 million, making up 27.7%. Nicosia was third with deals worth €7.8 million (12%), narrowly ahead of Larnaca, which had €7 million in sales (10.8%). Famagusta brought up the rear with €2.9 million in transactions, accounting for 4.5%.

The trend of concentration in Limassol and Paphos is evident, with higher-value transactions compared to other areas. In Limassol, the €9.4 million field sale contributed 32.2% of its total. In Paphos, the €7.6 million mixed-use property made up 42.2% of the district’s transactions. Nicosia’s top sale was a house sold for €1.45 million, representing 18.5%, followed by a €1.15 million field in Larnaca (16.4%), and a €500,000 house in Famagusta (17.2%).

Pavlos Loizou, CEO of Ask Wire, remarked that February marked a robust recovery in Cyprus’ luxury property market, more than doubling from January. The upturn was significantly driven by Limassol, highlighting its appeal to both institutional and international buyers.

While a €9.4 million field sale led the figures, residential properties continue to form the backbone of high-value sales. Over 60% of the top 50 transactions were residential, indicating strong demand for ready-to-move-in or income-producing properties over speculative land investments.

There is a noticeable geographic polarization as well, with Limassol and Paphos capturing nearly 73% of the major market value, while regions like Famagusta and Larnaca remain less represented despite competitive pricing. This disparity suggests a gap and potential opportunity for regional development and investor interest.

These insights emphasize the increasing reliance on data-driven analysis for informed decision-making in the market — not just regarding what properties to purchase, but also where, when, and why to invest. At Ask Wire, we continue to empower our clients with the clarity needed to navigate this quickly evolving landscape.

The Interior Ministry has officially unveiled the “Revamp and Rent” Program, providing an opportunity for property owners to secure grants of up to €35,000 for renovating vacant houses — provided they lease them at affordable rates.

Beginning at noon on Wednesday, April 9th, homeowners can submit their applications digitally. This initiative aims to address two pressing issues simultaneously: the increasing number of unoccupied, dilapidated buildings throughout Cyprus and the scarcity of affordable housing options for those in need.

This program offers grants ranging from €15,000 to €35,000 to assist property owners in covering renovation or upgrade expenses. In exchange, these owners must offer the refurbished properties to tenants who meet designated income criteria.

Who is eligible to lease a refurbished property?

According to the Ministry, qualifying tenants must not already own a home and must have incomes within specific ranges, depending on their household size:

– Single person: up to €25,000
– Couple or single parent with one child: up to €45,000
– Families or single parents with two children: up to €50,000
– Families or single parents with three children: up to €55,000
– Families with four or more children: up to €65,000

Prospective tenants can complete an application form online. Once the Cyprus Land Development Corporation reviews and approves the application, tenants can explore a selection of available renovated homes and make direct rental arrangements.

The Ministry aims for the scheme to rejuvenate underutilized properties while alleviating housing pressures for families with lower and moderate incomes.

For more information and application details, interested parties are encouraged to visit the relevant government platform.

Cyprus experienced a significant 19% increase in property sales in March compared to the same month in the previous year, with each district witnessing double-digit growth over March 2024.

In Paphos, sales soared by 32%; Larnaca saw a 21% rise; Nicosia experienced an 18% increase; Famagusta’s sales climbed 15%; and Limassol saw an 11% rise.

Despite Limassol having the smallest sales increase, it recorded the highest number of sales across all districts, with 477. This figure represents the highest monthly sales number for any district since monthly reports began in 2008.

During the first quarter of 2025, sales across the board outpaced those from the previous year, with all regions reporting gains. Larnaca led with a 26% increase, followed by 15% increases in both Limassol and Nicosia, a 7% rise in Paphos, and a 4% uptick in Famagusta.

Though Cyprus might be on the verge of a record sales year, the trade tariffs introduced by Donald Trump could indirectly impact the property market. A potential economic slowdown in the eurozone, stemming from reduced EU exports to the U.S., might erode investor confidence and reduce foreign investment—both critical to the Cyprus property market’s vitality.

Rising costs for imported goods and materials could drive up construction expenses and inflation, potentially deterring prospective property buyers and investors, ultimately lowering demand. Inflationary pressures might influence the European Central Bank’s policy decisions, affecting interest rates. If interest rates climb, borrowing costs for mortgages and property loans might rise, potentially cooling the property market.

The impact of the U.S. tariffs has yet to be felt in Cyprus, but their duration, magnitude, and the Eurozone’s response could produce ripple effects. Predicting the outcome is challenging. Elon Musk recently advocated for eliminating tariffs between the U.S. and Europe, favoring a free-trade zone between the two regions.

Nationwide protests, dubbed “Hands Off!” rallies, took place in cities including Washington, New York City, Los Angeles, and Philadelphia, in response to budget cuts from Elon Musk’s Department of Government Efficiency and President Trump’s newly imposed tariffs.

In March, domestic property sales rose by 14% year-on-year, with every district reporting higher numbers. Famagusta led with a 27% increase, followed closely by Nicosia at 26%, Paphos at 20%, Larnaca at 7%, and Limassol at 6%. Yet again, Limassol, despite a modest sales increase, achieved the highest number of domestic sales, totaling 305.

For the first quarter of 2024, domestic sales surged by 15% compared to the previous year. While sales dipped by 8% in Paphos and stabilized in Famagusta, they shot up by 29% in Larnaca, 17% in Limassol, and 16% in Nicosia.

The overseas market saw a 25% rise in March, compared to the year before. Nonetheless, Nicosia’s sales fell by 13%, remaining unchanged in Famagusta. However, Larnaca’s sales increased 41%, Paphos by 39%, and Limassol by 21%, with Paphos achieving an impressive 204 sales that month.

Year-to-date, overseas sales in 2024 have grown 15% compared to the same timeframe the previous year, with all districts enjoying growth. Specifically, Larnaca rose by 22%, Paphos by 16%, Limassol by 14%, Famagusta by 9%, and Nicosia by 2%.

Sales to EU citizens in March saw a 16% boost, though Nicosia and Famagusta experienced declines of 36% and 27%, respectively. In contrast, sales rose by 65% in Larnaca, 60% in Paphos, and 10% in Limassol.

In the first quarter of 2024, sales to EU citizens rose by 29%, with the exception of Nicosia, which saw a 6% decline. Notable increases included Paphos at 55%, Famagusta at 49%, Nicosia at 32%, and Larnaca and Limassol at 27% and 16%, respectively.

Regarding non-EU nationals, March saw a 30% rise in property sales compared to the previous year across all districts. Significant growth was noted in Famagusta at 40%, Larnaca at 34%, Paphos at 31%, with both Limassol and Nicosia witnessing a 26% increase.

The first quarter of 2024 saw a 10% increase in property sales to non-EU citizens comparative to March 2024. Though Famagusta experienced a 21% dip, other districts recorded gains: 20% in Larnaca, 14% in Limassol, 10% in Nicosia, and 3% in Paphos.

The illustrative chart below depicts the varying popularity among different market segments across districts. In Paphos, a favorite for holiday home seekers, sales to non-EU nationals surpassed those to the domestic market. Larnaca’s appeal is on the rise, with the overseas market showing the most robust growth in the first quarter at 22%.

The group of international financial institutions known as the Troika has expressed concerns about Cyprus’ sluggish advancement in dealing with its longstanding Non-Performing Loans (NPLs) and the country’s ongoing issue of high debt levels.

The recent visit of the Troika’s technical delegation to Cyprus underlined the pressing economic issues the country faces, mainly caused by a considerable amount of unresolved Non-Performing Loans and the persistence of high public debt.

Although there has been a slow reduction in NPLs over the past few years, a significant backlog remains, continuing to burden the economy. Additionally, private debt is still relatively high, limiting the financial flexibility of households and businesses.

Recent reports indicate that the Troika is seriously worried about Cyprus maintaining one of the highest NPL ratios in the Eurozone. This concern extends beyond the NPLs retained by banks to those held by Vulture Funds. According to the latest figures, these entities possess approximately €19.1 billion in NPLs, with an additional €1.7 billion still on bank balance sheets. The inability to resolve or write off these loans restricts credit access and diminishes liquidity in the economy.

Furthermore, the Troika noted that Cyprus’s private debt remains significantly high compared to European standards. This situation hinders some individuals and businesses from fully engaging in the country’s economic progress. By the conclusion of 2024, roughly 72,000 borrowers had NPLs managed by Debt Servicing Companies, with fewer maintained by banks.

Impact on the Economy of Cyprus

The substantial volume of unresolved NPLs, along with high public debt, impedes economic growth. Ongoing uncertainty regarding the foreclosure process and the slow pace of debt resolution erode investor confidence and postpone new investments. Moreover, the lack of a cohesive plan to further lower public debt risks increasing the state’s borrowing costs, further restricting future growth potential.

A Critical Year Ahead

The year 2025 is anticipated to be a pivotal moment for Cyprus. The Troika has called on Cypriot authorities to implement definitive actions to tackle the NPL issues and reduce private debt. Primary focuses include:

Enhancing the rate of foreclosures and debt restructurings: Promptly resolving legacy NPLs is crucial to stimulate growth.

Judicial reform: Making foreclosure proceedings quicker and less vulnerable to exploitation by strategic defaulters is essential.

Developing targeted policies for private debt reduction: In a country growing at over 3% annually, adopting debt relief and restructuring strategies is vital for broader economic inclusion.

Stimulating economic activity: An economy relieved of legacy debt enables banks to increase new lending, thereby boosting investment and consumption.

In summary, Cyprus is at a transition point where courageous reforms are necessary to overcome the enduring impact of its past financial turmoil, paving the way for sustained economic recovery and growth.

Authorities have initiated measures to address 1,292 buildings deemed hazardous, presenting potential risks to public safety and requiring urgent attention.

To confront this issue, new policies and increased state funding have been unveiled. These buildings are located in Nicosia (618), Limassol (308), Larnaca (170), Famagusta (26), and Paphos (170).

MP Marinos Mousiouttas, with the backing of Interior Minister Constantinos Ioannou, is proposing new legislation aimed at enhancing safety and resolving flaws in current laws, which insufficiently protect the public, affected properties, and nearby structures.

State funding is set to rise to support District Local Government Organisations (DLGOs) charged with managing these precarious buildings. Nicosia will receive €500,000, reflecting allocations for other districts that remain below ideal levels.

After discussions with Mousiouttas, Ioannou revealed that the House Interior Committee has drafted a revised legal proposal. Its main objective is to fortify public safety by refining the management of these perilous structures.

Ioannou noted that weaknesses within the existing legal framework, identified through collaboration with Municipalities, Communities, and DLGOs, have hampered effective enforcement. While some local authorities have addressed safety concerns, others struggle due to legal complexities.

The transfer of responsibility for dangerous buildings to the DLGOs is accompanied by legal amendments focusing on improved monitoring and enforcement. Property owners will be obligated to ensure safety, with legal measures compelling necessary action.

Key reforms include facilitating owner notifications, empowering courts to issue immediate intervention orders, and barring the use or leasing of unsafe buildings until necessary repairs are completed. Legislation now also allows for partial or full demolitions and discontinuation of utilities.

Additional measures involve registering a notice on affected properties to recuperate intervention costs, enabling out-of-court settlements, and introducing harsher penalties for non-compliance.

Previously, financial limitations restricted authorities from efficiently managing dangerous buildings. To remedy this, the Interior Ministry has obtained additional funding.

The allocation of funds to DLGOs will be determined by the number of risky buildings registered within each municipality, following a comprehensive restoration strategy devised in collaboration with local authorities.

This infrastructure initiative is encapsulated in the draft law titled “Roads and Buildings Regulation (Amendment) (No. 2) Law of 2025,” available both in Greek and English translations.