Top 5 Common Mistakes When Buying Land in Cyprus and How to Avoid Them

Buying land in Cyprus, especially land for investment and development purposes, always involves certain risks. Even if you managed to acquire a plot, there’s a significant possibility that construction on it could be prohibited or you may miss your estimation. Cyprus has numerous legal and regulatory specifics that should be clearly understood before starting any building plans. Verifying these details is nearly impossible without real estate professionals' assistance.

Key Points to Address Before Purchasing Land in Cyprus 

To help you avoid unnecessary stress, financial losses, and time wasting, we reached out to Alexander Siomin from Cyprus Sotheby’s International Realty, ETEK Qualified Land Valuer and Licensed Estate Agent. 

Alexander, what are the most frequent errors that make a plot unsuitable for construction? 

Building Density and Planning Zoning 

“Of course, building density is the key factor that everyone considers as the first parameter, which is typically specified in the town planning department, but buyers often overlook it, especially investors when planning to build multiple housing projects or several units such as blocks of apartments on one plot. Misinterpreting building regulations can lead to critical errors and not achieving the “target”. For instance, public and private road works can go up to 35%, and public green areas can go up to 15% deductions until finding the net buildable area, however not forgetting that by law a 3-meter distance between the boundaries for detached houses and 3-4 meters or maybe more for buildings, but investors often forget that an additional distance. Getting advice from a professional before finalizing the purchase is a good practice to help you avoid such missteps.

Landlocked plots 

Another typical mistake is purchasing land that lacks road access or without any “rights of access” — lso called “landlocked”. Ensuring the plot has a legal road connection, electricity and water is critical. For instance, a stunning plot with unobstructed views might seem perfect, but if it’s surrounded by private land and lacks road access, it can lead to major complications. Securing access might require negotiations with neighbouring landowners, who could demand unreasonably high compensation.

То avoid this, your consultant should double-check the title deeds and the topographical plans of the area before placing a deposit.

Ancient Monument or Historical Monuments

Another challenge is archaeological or historical discoveries. When presenting a plot, every estate agent should do some basic planning research. However, even if the estate agent has done the research, the planning department can request it to do a further investigation due to the surrounding area. Starting land excavations and foundations might reveal ancient artifacts  beneath the surface — an outcome that’s not unusual in Cyprus, where the land has a rich historical heritage. Any such discovery will stop the construction permanently until the issues are resolved by the court which may take several years. It is good to note that contractors are obligated to report the findings to the authorities — the museum of the district in case they find any kind of “footprints.” Failure to do so could lead to severe penalties, including the permanent shutdown of the contractor's entity and revoking the contractor's license. Once artifacts are discovered, the government will appoint an independent valuation surveyor to value the land further the state will compensate the plot at the “market value” price. However, if you initially overpaid for the plot due to its attractive location, you could lose more than the difference. It’s always suggested to get a consultation from experts who are familiar with high-risk ancient monument areas.

Clay and Shifting sands 

In some areas of Cyprus, clay soils, known as “shifting sands”, pose serious risks. Such plots are often sold at very low prices, but the cost of construction can be far higher due to piling needs. In the past entire developments have experienced structural damage as the landslides. While building on these plots isn’t prohibited, it requires additional stabilizing measures, such as enhanced foundations.

A few decades ago, most developers were not aware of these precautions keeping in mind that land technology was not so advanced, leaving buyers responsible for high repair costs and cases which turned and investment into debt. While this service isn’t expensive to avoid such scenarios, a small investment can save you from substantial losses in the long run.

Seismic zones

If the land falls within a high seismic zone, construction costs can increase significantly — sometimes up to 15% or maybe more of the foundation price. Buildings in such zones must meet stricter safety standards and may require a specific foundation and binding way, reinforced materials like thicker steel reinforcing bars “rebar, and higher concrete grades. What’s more interesting, a plot can fall into two different seismic zones and require different structural inspections. Authorities enforce these regulations rigorously during the approval planning approval process.”

These are just five of many pitfalls that buyers and investors face when purchasing land in Cyprus. The process is laden with complexities that require careful consideration. If you’re interested, we can explore additional cases where land turned out to be suitable only for agricultural purposes.  

If you’ve been dreaming of living by the sea but haven’t made the leap yet, Cyprus might be the perfect destination. With 320 sunny days a year and a warm climate year-round, it’s an island where summer never ends. This publication is designed to help you make informed decisions. Check out our article on 7 Reasons for Relocation to Cyprus for more details.  

In case than you are considering to build your own home or investing in multiple properties, Larnaca deserves your attention. It’s currently the fastest-developing area in Cyprus, with rapidly evolving infrastructure and some of the most affordable prices on the island. See for yourself in our article: Larnaca: You Won’t Recognise It Soon. 

Take the next step toward building your dream home or launching a new project by exploring these exclusive residential plots in Cyprus from Cyprus Sotheby’s International Realty:

- A 23,646.00 m² beachfront plot near Paphos, perfect for Cyprus land investment and suitable for development 3 villas or a grand estate with breathtaking sea views.

- A plot just 400 meters from the coastline, situated in the charming and ever-popular resort town of Polis.

Both options offer exceptional potential for creating your ideal property in one of Cyprus’s most desirable locations. 

We are confident that this article will help you navigate the key aspects of buying land in Cyprus or Cyprus land investment and avoid costly mistakes. By consulting with experts, you can ensure a smooth purchasing process and confidently develop projects that not only suit your vision but also bring long-term value. Reach out to us today to learn more and start turning your dream into reality!