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Bank Of Cyprus Launches Targeted Voluntary Exit Plan Amid Structural Shifts

Bank Of Cyprus, in an effort to adapt to market changes driven by digital transformation, has announced a voluntary exit plan affecting 40 to 50 employees. The scheme, which offers a maximum tax-free severance package of €200,000, is available until November 21. It is primarily aimed at staff working in divisions where business volumes have notably declined, such as those managing non-performing loan portfolios.

Measured Approach And Previous Precedents

This initiative follows a similar, measured approach from last year, when the bank introduced a targeted exit offer for up to 50 employees from its overall workforce of 2,800. According to Panikos Nicolaou, CEO of Bank Of Cyprus, there will be no large-scale rounds of exits; future offers will continue to be selective, targeting only a small subset of employees at a time.

Union Criticism Over Compensation And Consultation

The move has triggered a strong response from the banking union EITYK. In an official circular, the union expressed its disagreement with the bank’s unilateral decision—particularly noting that the plan was communicated to employees on the same day as the union was informed. EITYK criticized the offer as ill-timed, given the bank’s current profitability and stable performance, and questioned the rationale of promoting a voluntary exit scheme when the organization is already operating with a leaner permanent staff supplemented by hundreds of external contractors.

Calls For Enhanced Compensation In Challenging Economic Times

The union has urged that any future voluntary exit plan should address the economic realities by increasing the maximum severance package to at least €250,000. It emphasized that, considering the strong financial performance of banks and the eroding value of money due to inflation, better compensation is justified. Furthermore, employees opting for voluntary separation will lose eligibility for unemployment benefits due to recent legislative changes, though they will retain medical and life insurance coverage for a minimum of five years following their departure.

Parallel Developments In The Banking Sector

In a related development, similar concerns have been raised by the management of the National Bank Of Cyprus, following an analogous union letter. Both institutions now face heightened scrutiny from labor representatives, who insist on improved consultation practices and compensation measures that better reflect the economic parameters of today’s market.

Cyprus Residential Market Surpasses €2.5 Billion In 2025 With Apartments Leading the Way

Market Overview

In 2025, Cyprus’ newly built residential property market achieved a remarkable milestone, exceeding €2.5 billion. Data from Landbank Analytics indicates robust activity countrywide, with newly filed contracts reaching 7,819, including off-plan developments. This solid performance underscores the market’s resilience and dynamism across all districts.

Transaction Breakdown

The apartment sector clearly dominated the market, constituting 81.6% of transactions with 6,382 deals valued at €1.77 billion. In contrast, house sales represented a smaller segment, encompassing 1,437 transactions and generating €737.9 million. The record-high transaction was noted in Limassol, where an apartment sold for approximately €15.2 million, while the priciest house fetched roughly €6.2 million.

Regional Analysis

Nicosia: The capital recorded steady domestic demand with 2,171 new residential transactions. Apartments accounted for 1,836 deals generating €349.6 million, compared to 335 house transactions worth €105.5 million, anchoring Nicosia as a core market with average values of €190,000 for apartments and €315,000 for houses.

Limassol: As the island’s principal investment center, Limassol led overall activity with 2,207 transactions. Apartments dominated with 1,936 sales generating €824.1 million, while 271 house transactions added €157.9 million. The district enjoyed premium pricing, with apartments averaging over €425,000 and houses around €583,000.

Larnaca: This district maintained robust activity with a total of 2,020 transactions. The apartment segment realized 1,770 transactions worth €353 million, and houses contributed 250 deals valued at €96.3 million. Average prices hovered near €200,000 for apartments and €385,000 for houses, positioning Larnaca within the mid-market bracket.

Paphos: With a more balanced mix, Paphos completed 1,078 transactions. Ranking second in overall value at €503.2 million, the district saw house sales generate €287.8 million and apartments €215.4 million. Consequently, Paphos achieved the highest average house price at approximately €710,000 and an apartment average of €320,000, emphasizing its premium housing profile.

Famagusta: Distinguished by lower transaction volumes, Famagusta was the sole district where house sales outnumbered apartment deals. Out of 343 transactions, 176 involved houses (yielding €90.4 million) and 167 were apartments (at €32.4 million). The segment’s average prices were about €194,000 for apartments and over €513,000 for houses, signaling its focus on holiday residences and coastal developments.

Sector Insights and Forward View

Commenting on the report, Landbank Group CEO Andreas Christophorides remarked that the analysis demonstrates an ecosystem where apartments are the cornerstone of the real estate market. He emphasized, “The apartment sector is not merely a trend; it is the engine powering the country’s real estate market.” Christophorides also highlighted the diverse regional dynamics: Limassol leads in apartment pricing, Paphos commands premium house prices, Nicosia remains pivotal to domestic demand, Larnaca sustains competitive activity, and Famagusta caters to holiday home buyers.

In a market characterized by these varied profiles, informed monitoring of regional and sector-specific dynamics is crucial for investors aiming to make targeted and strategic decisions.

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