Growing concern that foreign buyers pressure the housing market in Cyprus has reignited political debate, with AKEL submitting two bills aimed at tightening controls on land sales to third-country nationals and safeguarding access to housing for locals.
The party’s General Secretary, Stefanos Stefanou, said the situation has escalated to the point where it “can no longer be ignored”, citing data from the Audit Office and the Land Registry that show a sharp rise in purchases by non-EU nationals. He argued that this trend has fuelled price hikes, pushing home ownership further out of reach for young Cypriots.
Speaking to state radio, Mr Stefanou warned not only of social consequences but potential national security risks. He noted cases where land was sold near “vital services of the Republic”, stressing that Cyprus, as a semi-occupied and geographically vulnerable island, must take such matters seriously. Several EU states, he added, already enforce strict limits or outright bans on property acquisitions by third-country nationals.
AKEL targets shell companies used to buy land
The party’s two draft bills propose amendments to the laws on property transfer and acquisition, closing loopholes that allow foreign buyers to purchase assets through shell companies without revealing their real owners. Mr Stefanou described this method as a common route for large-scale acquisitions, saying the bills aim to ensure oversight, transparency and identification of the true beneficiary.
He emphasised that AKEL remains open to dialogue with all political forces and stakeholders but insisted that action is now urgent. The proposals have already been submitted to the House Interior Committee, where discussions are expected to begin soon.
Four in ten Cyprus property sales made to foreign buyers
The shift in buyer profile was also highlighted by Pavlos Loizou, CEO of Ask Wire, in a recent interview with Economy Today. He noted that while foreign buyers have long supported the real estate sector, their strategy has changed significantly since 2022.
Instead of primarily purchasing finished homes, many are now investing in land, commercial properties and development projects aimed at resale to foreign end-buyers. According to Ask Wire data, foreigners accounted for 40% of property purchases nationwide in the first quarter of 2025. Paphos led with 68%, followed by Famagusta (52%), Larnaca (44%) and Limassol (36%). Nicosia remained comparatively low at 15%.
However, Mr Loizou stressed that these figures represent only part of the picture, as many major transactions involving land or commercial portfolios do not appear in Land Registry records; they are completed through share purchases of the companies holding the assets. This means a substantial portion of the market moves “unrecorded”.
Calls for targeted intervention
Mr Loizou argued that discussing caps on foreign buyers is now “a necessity, not a theory”. Cyprus remains one of the few EU countries without meaningful restrictions, at a time when others have shifted to more protective models.
Without targeted intervention, he warned, the Cyprus housing market will become increasingly inaccessible for local residents due to foreign buyers. Possible measures include income or tax-based criteria, geographic limitations, stricter source-of-funds checks and requirements for physical presence. The goal, he said, is not to block foreign investment but to shape a balanced framework that supports the economy without overwhelming society.
Also read: The ‘buy or rent’ debate still burning in Cyprus
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