High-rise construction was in high demand in Cyprus just a couple of years ago. New and new high-rises appeared on the island every year, especially in Limassol, which was most actively built up.
The boom in high-rise construction was directly linked to the Citizenship by Investment program, as the interest of foreign investors was primarily focused on buying real estate. However, the well-known events of 2020 - the coronavirus pandemic and the closure of the Passport by Investment program - have made significant adjustments to the plans of developers.
Most of the leading Cypriot developers have abandoned skyscraper construction in favor of standard but much more lucrative buildings.
This is evidenced by fresh data from the Department of Town Planning and Housing.
Only two permits for the construction of high-rises (15+ floors) were issued in Cyprus. One of them is expected to be erected in Limassol, the second one is in Larnaca.
In other words, after the closure of the Citizenship by Investment program in November 2020, many developers in Cyprus have curtailed their high-rise construction projects. Moreover, according to the Department of Town Planning and Housing, some approved projects have begun to be implemented, even though the relevant permits have been received.
As you may know, the peak of high-rise construction in Cyprus fell on 2018-2019. In 2018, Cyprus issued 581 Golden passports, and in 2019, amid intense public debate on money laundering, another 579 Golden passports were issued.
It should be noted that the greatest interest in the construction of high-rise buildings has always been concentrated in Limassol:
- In 2018, developers submitted to the Urban Planning Department 8 applications for the construction of towers in Limassol (26+ floors), 4 applications for the construction of buildings from 21 to 25 floors, 9 applications for the construction of buildings from 16 to 20 floors, 13 applications for the construction of buildings from 11 to 15 floors.
- In 2019, an application was made for Limassol for a tower with a height of more than 26 floors and an application for a high-rise from 21 to 25 floors.
- In 2020, two applications were approved for the construction of towers in Limassol with a height of more than 26 floors, as well as buildings from 21 to 25 floors, buildings from 16 to 20 floors, and six buildings from 11 to 15 floors.
- In 2020, there were 16 applications submitted throughout Cyprus, 10 high-rise buildings were approved in Limassol.
As for other cities in Cyprus, then:
- In Larnaca, in 2018, the construction of a high-rise above 26 floors was approved, and in 2019, buildings with a height of 21 to 25 floors.
- In 2018, Paphos approved two applications for the construction of buildings from 16 to 20 floors, and in 2019, one application for a 25-story high-rise.
In total, 56 permits for the construction of skyscrapers were issued across the country by the end of 2018, in 2019, this number stopped at around 20, in 2020, only 16 high-rise buildings (-20%) received permits, and only 2 are in the first four months of 2021.
Thus, the Department of Town Planning and Housing has issued 94 permits for the construction of high-rises on the island.
It is worth noting that according to the law, when considering applications for the construction of buildings two floors higher than prescribed by the regulations of a particular construction zone, special approval of the director of the Department of Town Planning and Housing is required, only after that the customer can apply for a town planning permit. The permission of the director does not automatically mean that the city planning department will also give the go-ahead for the construction.
The construction of high-rise buildings in the center of Nicosia does not require the permission of the director of the city planning department, which means that projects in the heart of the capital are not included in these 94 high-rises.
You can find out more information about new projects in Cyprus on the DOM real estate website. The website also has a large number of real estate objects in the country, both residential and commercial. Choose and contact professionals who will help you make the right choice!
Photos: DOM LiVE, pixabay.com