Cyprus parliament considers curbs on non-EU property purchases

Nicosia, Cyprus. Parliament and the government are working on amendments to Cyprus’ basic law on property acquisition that would place restrictions on real estate purchases by foreign nationals, understood to mean non-EU citizens.

The debate has renewed concerns over rising foreign participation in property sales, housing affordability and purchases near sensitive locations, although the extent of these effects remains unclear.

Parliamentary debate

An Akel MP told parliament that foreigners account for half of all property sales and raised national security concerns over land purchases near the ceasefire line, military installations, airports and harbours.

The lawmaker also said large-scale purchases by foreigners were pricing local buyers out of the market, a view shared by others.

Proposed restrictions

Interior Minister Constantinos Ioannou said the timing for the amendments to reach the House plenum for a vote depended on parliament.

He said the government’s proposed amendments include prohibitions on non-EU nationals buying land near military camps, as well as restrictions on their acquisition of land in agricultural areas.

Restrictions already apply to the purchase of land or construction within a certain distance of airports, Ioannou said. These rules apply to Cypriots, EU nationals and non-EU nationals.

Property sales data

Pavlos Loizou, chief executive of real estate data analytics company Ask Wire, said it was important to distinguish between the different issues involved.

Asked whether half of property sales involve foreign nationals, Loizou said the claim was “right and wrong at the same time.”