Cyprus property body proposes new law to license developers

The Cyprus Property Developers Association is promoting the establishment and registration of the profession of Land Development Entrepreneur, having already submitted a formal proposal to the Ministry of Interior. 

The association, which represents around 80 per cent of the market through its 50 members, said the regulation would enhance transparency, protect buyers’ interests, and strengthen the credibility of the sector.

It would also create, for the first time, a structured and controlled operating framework for Cyprus’ real estate market. 

The proposal was prepared following consultations with the Cyprus scientific and technical chamber (Etek) and legal experts.

According to the association, the institutionalisation of the profession is essential to promote transparency, credibility and professional accountability in real estate development.

If implemented, it would clearly define the rules and conditions for those practising the profession. 

According to the proposal, a registration council for real estate developers will be established to regulate and oversee the profession.

Its president will come from the public service and hold a degree in a relevant field, while the Council itself will be responsible for ensuring transparency, responsibility and compliance with professional standards. 

At the same time, the draft law introduces clear registration criteria for entry into the official Register of Registered Entrepreneurs, aiming to ensure that only those meeting the required conditions can operate in the market.  

Through this framework, the quality of services is expected to improve, professional responsibility to be strengthened, and buyers’ interests to be better safeguarded, ultimately cultivating greater trust in the property market. 

Following a meeting in May 2025, the association said Interior Minister Constantinos Ioannou expressed a positive stance towards institutionalising the profession.

His support, they noted, was reflected in the creation of a special working group that includes officers from the Department of Lands and Surveys and members of the association, with the task of refining and promoting the draft law.

At present, Cyprus has no legislative framework defining who can operate as a land and building development entrepreneur. In practice, any individual or company can engage in real estate development and sales without specific qualifications, experience or certification.  

The association’s proposal seeks to close this gap by creating an officially regulated profession governed by clear rules.

Once enacted, only registered individuals or entities will be allowed to develop and sell real estate commercially, while the use of the title “land development entrepreneur” will be restricted to those in the Register. 

Although the association’s 50 members account for most of the market, the total number of active developers is believed to be higher.

The absence of an official register makes it difficult to determine the actual figures. The proposed Registration and Control Board would, for the first time, ensure an accurate record of professionals, strengthening oversight and transparency in the sector. 

The introduction of a regulated profession is expected to benefit both the state and property buyers. For the government, it would mean greater transparency, improved supervision and fewer unfair practices in a sector that plays a decisive role in the economy.  

For buyers, it would provide an added layer of protection. Each client would know they are working with a licensed and monitored professional who meets defined ethical and technical standards, which in turn would boost trust and stability in the real estate market. 

To qualify for registration, applicants must be engaged or intend to engage in real estate development and operate from a properly staffed and equipped office.

They must also employ or collaborate with a design and project supervision office registered with Etek, while permanently employing a qualified real estate salesperson and a civil engineer, architect or valuer who is a member of Etek.

The appointment of a qualified auditor is also required, along with proven experience in the field.

Those who meet all other criteria but lack the required experience may register as probationary entrepreneurs for up to three years. 

The change, the association stressed, will be substantial and decisive for the profession. Once the law is enacted, registration will become a mandatory prerequisite for practising as a land development entrepreneur.

Unregistered individuals will no longer be able to carry out land development projects, promote or sell properties commercially, or present themselves as entrepreneurs in the sector. 

It was further clarified that the proposed law concerns only land development professionals and not building contractors, who are governed by separate legislation and a distinct register.  

The draft law is currently under review by the working group established by the Minister of Interior, which includes both government officials and representatives of the association.

The aim, the association said, is to finalise a bill that meets the needs of both the sector and the market, ensuring long-term transparency and credibility in Cyprus’ real estate development industry.