Serious allegations caused shock during a session of the House Interior Affairs Committee regarding the long-debated issue of property purchases by foreign nationals in Cyprus.

Among the claims raised was the allegation that property and land purchases have been identified in areas adjacent to critical infrastructure of the Republic of Cyprus.

According to information obtained by Brief from sources within the competent authorities, residential complexes have been identified whose occupants originate exclusively from two specific countries.

These foreign nationals, the sources added, appear to be forming informal “ghettos”, as all apartment residents come from the same country.

In two cases, the residential complexes are fenced, and a permanent security guard is stationed at the entrance. Entry for residents, relatives, or friends is permitted only via access codes.

It was explained that in one of the two cases, the fencing was likely installed for security reasons. The competent local authority is reportedly aware of the situation.

However, as a technocrat from the Ministry of Interior with knowledge of the matter told Brief, the issue “does not merely raise troubling associations.” “In the long term,” he pointed out, “there will also be an issue of social integration of these foreign nationals with Cypriot society, its culture, and its traditions.”

There is a widely shared view among relevant ministries, Parliament, the Law Office, and involved stakeholders that the relevant legislation must be urgently revised, as it has been described as “outdated” and no longer aligned with the special circumstances facing the country.

During yesterday’s session of the House Interior Affairs Committee, almost all members stressed that amendments to the relevant legislation must be approved by the Plenary before the dissolution of Parliament, ahead of the parliamentary elections scheduled for May.

A proposal was accepted for the Committee to reconvene in approximately two weeks to examine 4 legislative proposals that have been submitted, along with the forthcoming bill of the Ministry of Interior, with the aim of forwarding them to the Plenary before the end of March.

AKEL Secretary General Stefanos Stefanou, citing information at his disposal, stated that there is heightened interest from foreign nationals in purchasing properties located near “critical infrastructure of the Republic of Cyprus.”

Presenting the two legislative proposals submitted by AKEL, Mr. Stefanou cited, among other issues, national security concerns arising from the uncontrolled purchase of land near critical infrastructure.

He specifically referred to purchases near the two international airports, National Guard camps, and areas adjacent to the ceasefire line.

At this point, Mr. Stefanou noted that the adoption of the legislative proposals would help restore balance to the real estate market, stressing that property prices have become unaffordable for middle- and low-income households, particularly in urban centers.

He spoke of a “real estate bubble”, which he said has driven property prices sharply higher, leaving many citizens unable to secure housing.

Mr. Stefanou clarified that AKEL does not seek to ban property purchases by third-country nationals.

“What is required,” he said, “is an end to the uncontrolled acquisition of fertile land by individuals and companies, as well as property purchases near critical infrastructure of the Republic.”

Reference to the outdated nature of the law was also made by Antonis Oikonomidis, representative of the Ministry of Interior.

He noted that the Ministry intends to prepare a relevant bill, which is expected to be submitted to Parliament after the parliamentary elections.

Referring to a report by the Audit Office and a legislative proposal by DISY MP Nikos Georgiou, he added that the Ministry has reviewed both and prepared a study.

The study’s findings, he said, highlight the outdated character of the existing law and regulations, pointing to conflicts between regulations and decrees.

Mr. Georgiou explained that the concerns of Committee members stem from the need to safeguard the public interest.

“We need quality investments,” he stressed, “but we must all be cautious when it comes to land ownership,” noting that ongoing changes create a new status quo and potential risks for the country.

It is noted that DIKO MP Zacharias Koulias stated that the legislative proposals aim to put an end to the unrestrained sale of land in the free areas.

He claimed that companies linked to Turkish interests are being registered in Cyprus or other European countries with the aim of acquiring real estate in the free areas.

The Committee decided to request comprehensive data on the real estate sector, parts of which have come under foreign ownership.

As explained by Committee Chairman Aristos Damianou, parliamentary parties must have a clear picture of the current situation so that, through consultation, an agreed legislative framework can be forwarded to the Plenary.

It is also noted that Christos Karas, representative of the Law Office, expressed the view that while the legislation does require modernization, such changes should be made with caution.

Support for amending the legislation was also expressed by representatives of the Ministries of Finance and Agriculture, particularly concerning national security and the sale of agricultural land.

Beyond the two ministries, affected professional bodies, including SELEK, CCCI, and OEB, also expressed support for revising the legislation.