Large parts of the Larnaca and Limassol coastal fronts have passed into the hands of third-country nationals who control land development companies in a disguised manner, whilst illegal estate agency activity runs rampant with property sales agreed under the table abroad.
Foreign nationals active in selling Cyprus property have help from local professionals, according to reports made before the Parliamentary Interior Committee. Some foreigners posing as project managers go in and out of district administrations doing the groundwork for property sales.
AKEL general secretary Stefanos Stefanou told the Interior Committee that large plots have been sold east of Larnaca and west of Limassol.
Interior Committee chairman and AKEL MP Aristos Damianou told Phileleftheros that in Larnaca, large areas were sold along the coastal front from the former refineries area to Dhekelia, whilst in Limassol the sales were towards the Lady’s Mile area.
In these areas, third-country nationals are buying not just land and buildings for housing but hospitals and hotels, with business purchases extending to city centres.
The issue arose during discussion of two bills proposed by Stefanou and nine other MPs including Zacharias Koulias, Panikos Leonidou, Pavlos Mylonas, Chrysanthos Savvides, Christos Orphanides, Kyriakos Hadjiyiannis, Nikos Sykas, Michalis Giakoumi and Nikos Georgiou.
Stefanou told parliament the bills would prevent the continued acquisition of huge land areas around security-sensitive locations and critical infrastructure.
The proposals aim to block acquisition of large land areas by third-country nationals and companies representing their interests, and would completely ban housing acquisition by foreign-interest companies.
DISY MP Nikos Georgiou said illegal estate agency activities by third-country nationals is rampant. Third-country nationals go in and out of district administrations claiming to be project managers or business consultants, handling sales transactions, he said.
This requires a registry of professional entities under the money laundering law for immediate control covering lawyers, accountants and estate agents, he added.
Movement of Ecologists – Citizens’ Cooperation (Greens) president Stavros Papadouris said many land development companies belong to third-country nationals who have expanded dramatically.
They activate the property sales mechanism not in Cyprus but abroad, where a parent company manages large property sales, he said.
According to Papadouris, these transactions have not been registered with the Land Registry and may not be registered until the properties are sold two or three times.
Damianou pointed out that some of these transactions may involve investment funds simply buying shares in real estate companies.
Papadouris said the issue cannot be controlled absolutely and should concern the Interior Ministry and Registrar of Companies regarding what types of companies are registered and their actual activities.
On a land plot you see a company sign appearing to operate in Cyprus, but if you dig deeper it actually refers to sales abroad, he said. Addressing lawyers and accountants present, Papadouris said some professionals are involved in this process and urged them to isolate the few who tarnish their image, even though the vast majority act within the law.
A lawyers’ representative noted it is not just accountants and lawyers who may be involved in such cases, but some who brazenly pose as accountants and lawyers.
Invited guests said sales documents must be handled by professionals, as some prepare contracts outside Cyprus without registering them with the Land Registry.
Damianou said parliamentary oversight and AKEL’s three-year affordable housing campaign confirmed that large areas of Cypriot land are being sold uncontrollably by foreign-interest companies or third-country nationals.
The legal framework overflowed under Nicos Anastasiades to the point of jeopardising vital security interests of the Republic of Cyprus, he said. Together with the golden passports scandal and property towers, the uncontrolled purchase of large land areas has caused prices to skyrocket, making affordable housing or land for own residence an unattainable dream for the majority of citizens, he added.
This was why AKEL promoted legislative regulation of property acquisition by third-country nationals, according to Damianou.
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