Cyprus Property News 27 June 2025 - by Nigel Howarth
Cyprus has taken a bold step towards transforming its urban landscape, following the approval of a landmark bill by Parliament on Thursday. The newly passed legislation on urban development zones is set to unlock long-idle land for construction, while tackling the problem of urban sprawl.
The Interior Ministry welcomed the new law as a pivotal moment in the country’s efforts to modernise how cities grow. The legislation introduces a structured process for merging fragmented, underutilised plots within designated development zones and reallocating the land in ways that meet today’s urban needs.
For years, scattered plots and ownership disputes have stalled development across key areas, leaving them untouched and unusable. This new framework promises to break those deadlocks, helping revive neglected urban pockets.
One of the law’s core aims is to discourage haphazard housing development on the fringes of towns, a trend blamed for sprawling infrastructure and inefficient public services. Instead, the law supports more compact and sustainable growth within existing urban boundaries.
The reform is part of Cyprus’ broader recovery and resilience plan and represents the first major milestone in an ongoing effort to overhaul urban planning. A second phase will see ten pilot land consolidation projects launched, testing the approach before it is rolled out more widely.
Crucially, the law is designed to support landowners stuck with plots that are landlocked, co-owned by multiple parties, or burdened with legal or financial obstacles. By reorganising such land into usable and accessible parcels, the government hopes to make it easier for these owners to finally put their property to productive use.
Officials also highlight the potential for large-scale zoning improvements and the regeneration of derelict areas, including those damaged by natural disasters. The law could breathe new life into zones previously seen as too complex or costly to redevelop.
This push for smarter urban planning is closely tied to Cyprus’ national housing policy. With demand for homes soaring, particularly in cities, the goal is to make more land available within town limits for much-needed housing projects. By reshaping plots into practical sizes and layouts, authorities say they can create room for not just homes, but also public roads, parks, pedestrian routes, community facilities, and shared spaces.
The legislation outlines three ways for land consolidation to move forward: with full agreement from all landowners; through agreements between landowners and local councils; or, if needed, by direct order of the Council of Ministers.
With this new law in place, Cyprus is laying the groundwork for more liveable, better-planned cities – and giving long-overlooked land a new lease of life.
