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Foreign Acquisitions Redefine Cyprus Coastal Real Estate

Foreign investors are rapidly reshaping the Cyprus coastal property market. Prime land along the shores of Larnaca and Limassol is coming under the control of third-country nationals through obscure, shell companies associated with large-scale land development. Concurrently, a shadow network of unauthorized real estate brokers is finalizing covert off-the-record transactions with international partners.

Foreign Ownership Of Prime Coastal Land

Parliamentary testimonies reveal that foreign stakeholders, in collaboration with local professionals, have penetrated key administrative levels to facilitate lucrative property deals. Acting under the guise of project consultants and property managers, these individuals have begun laying the groundwork for the off-market sale of critical real estate parcels. The issue is particularly acute along the beachfronts of Larnaca and Limassol, where vast tracts—from former industrial zones to areas near recognizable landmarks like Lady’s Mile—are being rapidly privatized.

Legislative Scrutiny And Political Oversight

In recent sessions before the Interior Committee, influential voices, including the General Secretary of the Cypriot Real Estate Confederation, Stefanos Stefánou, called attention to the alarming pace of land sales. Stefánou highlighted that extensive areas east of Larnaca and west of Limassol have already been transferred, a trend that raises both economic and security concerns. Committee Chairman Aristos Damianou further described transactions spanning from the coastal belt near former refineries to central zones, noting that foreign buyers are not only acquiring residential plots but also hospitals, hotels, and urban business centers.

Calls For Legislative Intervention

Two legislative proposals, inspired by leading voices within the Cypriot Real Estate community and supported by parliamentarians such as Zacharias Koulias, Panikos Leonidou, Pavlos Mylonas, Chrysantos Savvidis, Christos Orfanidis, Kyriakos Chatzigiannis, Nikos Syka, Michalis Giakoumi, and Nikos Georgiou, are currently under discussion. These initiatives aim to halt the unchecked acquisition of large expanses of land by citizens and entities from third countries, thereby safeguarding strategically important areas and critical infrastructure.

Regulatory Gaps And Professional Accountability

Concerns have also been raised regarding the involvement of local legal, accounting, and real estate professionals. Some insiders assert that a number of these practitioners are facilitating transactions that bypass official controls, such as the mandatory registration with the Land Registry. Even investment funds have been implicated, purchasing shares in property companies primarily to exploit loopholes within the current regulatory framework. The call is clear: a centralized registry and rigorous oversight are essential to preserve the public interest.

Impact On The Local Housing Market

The unbridled sale of coastal land has broader implications, notably contributing to skyrocketing property prices that make affordable housing increasingly unattainable for residents. The crisis has stirred debate at both the governmental and public levels, linking issues such as the golden passport scandal and the rapid inflation of property values to the overarching problem of unchecked foreign investment.

Conclusion

This unfolding scenario demands a coordinated response from key entities such as the Ministry of Interior and the Registrar of Companies. By tightening regulations, enforcing transparent transaction procedures, and holding professionals to stricter accountability standards, policymakers are tasked with balancing the benefits of foreign investment with the imperative to protect national security and ensure equitable access to housing.

Building Permits Surge In Value And Volume Amid Robust Market Activity

Strong Growth In Permits Reflects Market Confidence

The latest data released by the Statistical Service underscores a notable surge in the number and, more importantly, the value, area, and residential units approved under construction permits during January–October 2025. Compared to the previous year, the total number of permits rose by 9.0%, reaching 6,490 from 5,955 in the corresponding period of 2024.

Significant Increases In Permitted Value And Area

Growth was even more pronounced in financial and spatial indicators. The total value of approved permits rose by 27.7%, while the cumulative construction area expanded by 30.7%. The strongest acceleration was recorded in residential units, which climbed by 33.1%. This pattern suggests renewed investor activity and stable end-user demand, particularly in housing projects.

October 2025: A Snapshot Of Market Momentum

The activity in October 2025 alone was remarkable. During this month, 855 construction permits were issued, encompassing a total value of €447.6 million and covering an aggregate area of 356.2 thousand square meters. These permits are projected to facilitate the development of 1,950 new residential units, further propelling the sector’s expansion.

New Regulatory Framework Elevates Efficiency

The expansion in permits follows notable administrative reforms. Since 1 July 2024, responsibility for issuing building permits has shifted to Regional Government Bodies, while application and approval procedures have been digitized through the Ippodamos information system. The new framework is designed to reduce processing times, increase transparency, and standardize oversight across districts, contributing to smoother project initiation.

Implications for the Construction Sector

Overall, the data indicate a broad-based strengthening of construction activity during the first ten months of the year, with especially strong gains in project value and residential supply. For developers, suppliers, and financial institutions, these signals point to a market environment characterized by confidence and planning. At the macroeconomic level, continued expansion in construction is likely to support employment, related industries, and fiscal revenues, reinforcing its role as a key growth pillar.

The Future Forbes Realty Global Properties
Aretilaw firm
Uol
eCredo

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