Housing Market in Cyprus: How Will Changes Affect You in 2025?

Why Is There a Suspension on Property Repossessions in Cyprus and How Does it Impact the Housing Market?

The Credit Acquisitions and Credit Facility Management Companies Association recently introduced a voluntary suspension on property repossessions in Cyprus, lasting until the end of July 2025. This decision is inspired by ongoing legislative discussions aimed at addressing the root causes of non-performing loans and entrapped buyers. The Association's initiative provides trapped buyers, who have initiated applications under the 2015 Transfer and Mortgage Law, some breathing space. But what does this mean for the housing market in Cyprus and for those involved in such transactions?

What Challenges Do Trapped Buyers Face?

Trapped buyers are typically individuals who have applied for their property's separate title deed but have encountered delays due to technical issues and other administrative hurdles. The Land Registry in Cyprus is investigating ways to streamline the management of these cases. As interim solutions are explored, it is evident that the issue remains complex. These complications create an uncertain landscape for both the buyers and the companies managing credit facilities.

How Does This Suspension Impact Non-Performing Loans?

The surge in non-performing loans remains a critical challenge as companies cannot proceed with repossessing mortgaged properties involved in trapped buyer applications. Initiating repossession can motivate borrowers to engage in negotiating settlements for their obligations. Consequently, the suspension seeks to facilitate discussions and provide lawmakers ample time to develop and implement a robust legislative framework.

What Are the Next Steps for the Housing Market in Cyprus?

The culmination of these efforts will hopefully be captured in a comprehensive new legal bill by July 2025. As this unfolds, entities involved in the Cyprus housing market eagerly await the legislative changes set to impact thousands of entrapped buyers and the strategies employed to deal with non-performing loans. This legal intervention is hoped to foster a more transparent and fair market for all parties.

Are you wondering how these changes might affect your real estate plans in Cyprus? Contact Tsitsios & Associates LLC at info@klztlaw.com for comprehensive guidance and advice on navigating the changing property landscape in Cyprus.

For more insights on Cyprus real estate developments and investment opportunities, subscribe to our newsletter!