Authorities in Cyprus are cracking down on illegal property sales, focusing on areas owned by Greek Cypriots in the north. Recent arrests, including that of a German woman at Larnaca airport, are part of efforts to combat illicit real estate transactions, with investigations targeting key offenders like Simon Mistriel Aykut and Josef Rikels.
In Cyprus, tensions are rising as unauthorized property sales in the north draw legal action, with recent arrests at Larnaca airport shedding light on the issue. The crackdown on individuals marketing properties on disputed land claimed by Greek Cypriots underscores the gravity of the situation, hinting at a broader political and legal entanglement in the divided island.
Turkish Cypriot leader Ersin Tatar believes property sales to third country nationals in the north are beneficial, despite strict regulations limiting purchases. He sees potential in education and tourism, dismissing concerns of occupation and highlighting the diversity in property ownership in the south.
The updated real estate laws have introduced several measures to enhance buyer protection in property transactions. Sellers are now required to provide an uptodate search certificate at contract signing, clear declarations of any property encumbrances are mandatory, registration at the Land Registry must include seller and mortgagor declarations, and a procedure for mortgage discharge upon sale completion has been outlined. These changes aim to provide buyers with more transparent information, protect them from hidden encumbrances, and ensure their investment goes towards securing their new property rather than settling unrelated debts.
The Cyprus real estate market has experienced a surge in property sales in 2023, with 8,681 property transfers and 9,374 sales documents registered. Limassol leads in sales value, while Nicosia has the highest number of property transfers. Paphos and Larnaca report steady growth, with Famagusta maintaining stability.
In the third quarter of 2023, Nicosia’s real estate market saw a surge in property sales, with a total value of €164.9 million. Apartments were the most popular, accounting for 492 sales worth €81.6 million, followed by houses, plots, and fields.
The interior minister of Northern Cyprus, Dursun Oguz, has announced plans to introduce new restrictions on property purchases by thirdcountry nationals, in an effort to address concerns over “dark money” and ensure investment transparency. The proposed legislation aims to slow down foreign real estate investment and tackle demographic concerns, with a focus on market order and sustainability.
