Property council fears new bills will harm real estate and investments

The Cyprus Real Estate Agents Registration Council on Friday voiced strong opposition to key provisions of three draft bills currently being debated in parliament.

In its statement, the council warned that the proposals “could create a bureaucratic bottleneck in the property market and overburden already understaffed building authorities”.

While the council acknowledged the need for better management of jointly owned buildings, it stressed that “certain provisions risk having devastating consequences“.

A central point of disagreement is the proposal that a certificate from the management committee confirming the settlement of communal expenses should be required both for the filing of a sales contract and for the final transfer of a property.

“Such a requirement will obstruct thousands of property transactions, cause endless delays, and open the door to cases of owners being blackmailed by arbitrary or mismanaged committees,” said the council’s president Marinos Kineyirou.

“The economy and the attraction of investments rely on speed and security of transactions,” he added.

“Instead of solving one problem“, Kineyirou continued, “we risk creating a much larger one, damaging the credibility of our country as an investment destination.”

The council stressed that “management committees already possess the legal tools to pursue outstanding debts through the courts, without the need to ‘shield themselves’ behind a procedure that would hold owners hostage”.

“Equally problematic”, the council argued, “is the proposal that building authorities should be tasked with registering and supervising management committees“.

“It is common knowledge that the building authorities are already struggling with a heavy workload and understaffing, which has led to enormous delays in the issuance of permits,” said Kineyirou.

“To assign them responsibility for thousands of management committees across Cyprus is a recipe for failure,” he added.

Moreover, the council president said that this “will paralyse both the construction sector and the functioning of the committees themselves”.

Meanwhile, in a memorandum submitted during the discussion of the bills at the House internal affairs committee, the Cyprus Real Estate Agents Registration Council urged lawmakers to reconsider these provisions.

At the same time, the council “expressed its readiness to contribute to a constructive dialogue aimed at finding solutions that are practical, fair, and effective, without undermining the property market and economic growth”.

The government has argued that the proposed legislation is necessary to address longstanding weaknesses in the management of jointly owned buildings, where thousands of residents face ongoing disputes and inadequate maintenance.

The Interior Ministry has highlighted that the new framework seeks to end what it describes as “a state of disorder“, with committees becoming mandatory in all apartment blocks and operating under standard or internal regulations.

As mentioned above, a central provision requires property owners to secure certification from management committees confirming communal fees have been paid before a property transfer can proceed, a measure designed to prevent some owners from avoiding their obligations at the expense of others.

The bills also expand the authority of management committees, granting them enforcement powers, financial responsibilities, and the ability to impose penalties.

Supporters argue these changes will ensure fairness, improve safety, and provide the legal structure needed to maintain buildings effectively across Cyprus.