In Cyprus, real estate continues to be one of the most popular forms of investment—whether for owner-occupation or purely investment purposes. In this brand new post, Anna Papa , Owner & Chief Executive Officer of A.J. PROSPERIOUS PROPERTY MANAGEMENT GROUP LTD, provides valuable takeaways for anyone wishing to invest in real estate here in Cyprus.
I. Introduction
A Brief Overview of the Problem: Lack of Management and Accumulated Debts
Today, hundreds of co-owned buildings across Cyprus are facing serious challenges, such as (1) Absence of an active management committee; (2) Lack of a maintenance fund; (3) Inadequate or non-existent insurance for communal areas; (4) Poor maintenance of essential infrastructure (e.g., elevators, plumbing, electrical systems); and (5) Longstanding unpaid communal fees by certain owners.
Given the above, we see buildings that gradually deteriorate, a decline in the market value of apartments, increased operational and insurance risks, and—ultimately—erosion of the investment. Next, we turn the heed on the legal aspect.
The New Legislation (Cap. 224): An examination of the changes
The proposed bill amends the Immovable Property (Co-ownership of Buildings) Law (Cap. 224),[1] aiming to enhance the efficient operation and management of buildings. Key reforms include, for example: (1) Establishment of an official registry of co-owned buildings and their management committees; (2) Strengthened powers for debt recovery through simplified legal procedures; (3) Introduction of penalties for negligence or refusal to pay communal expenses; and (4) Ability to appoint a professional property manager in cases where self-management is not viable.
The most important development, though, lies in the formal recognition by the state of the need for professional management of co-owned properties—bringing the role of Property Management companies into the spotlight.
II. Investment Is Not Just the Apartment—It’s the Whole Building
When purchasing an apartment in a multi-unit building, one is not merely acquiring their private square meters. They also become a co-owner of (1) the hallways, entrance, plus elevator; (2) the parking areas, water tanks, as well as rooftop; and (3) the overall safety, cleanliness, in addition to aesthetic of the building.
Thus, when these shared elements are neglected, one’s investment suffers equally. For any buyer or investor, the key question s/he must ask themselves is then: ‘What is the condition of the building surrounding my apartment?’
III. The Role of Professional Property Managers
Property managers are not simply custodians of common areas or collectors of communal fees. They are investment advisors, technical inspectors, social mediators, and financial coordinators. Their responsibilities include (1) Strategic financial management (that is, budgeting, forecasting, fee collection); (2) Preventative maintenance of common areas; (3) Ensuring building insurance meets minimum legal requirements; (4) Coordinating and communicating with all owners—compliant and non-compliant; (5) Carrying technical audits and assigning certified professionals for works; and (6) Supporting prospective buyers in assessing the building’s condition.
IV. Responsible Owners: Protected or Penalized?
A legitimate concern arises: what about the owners who meet their obligations—those who pay their fees on time, attend general meetings, and care about the building’s image? Well, the answer is encouraging: the new legislative framework offers greater protection. It equips responsible owners with the tools to demand accountability and, moreover, prevents their investment from being undermined by the negligence of others.
V. Cost Recovery Through Professional Management
Engaging a specialised property management company may appear as an additional expense. But, in reality, it is an investment in prevention and long-term value. A well-managed building (1) Lowers operating costs via efficient supplier selection; (2) Prevents major damages through regular maintenance; (3) Enhances the resale value of individual units; and (4) Elevates the reputation of investors and developers alike.
VI. Conclusion: A New Era for Co-Owned Properties in Cyprus
In synopsis, the revision of Cap. 224 presents a historic opportunity to bring order and professionalism to the management of co-owned properties in Cyprus. Responsible owners are rewarded. Irresponsible parties face consequences. And, importantly, professional property managers are called upon to play a central role in this new reality.
For business leaders, investors, and real estate managers, the message is quite clear: management is not a cost—it is an investment. And a well-managed building, furthermore, is not merely a structure; it is a high-performing asset.
As for what responsible owners gain, they benefit from value appreciation, transparency, and legal assurance.
Lastly, managing co-owned buildings is not a “portfolio of obligations.” It is a strategic driver of property value. Trustworthy management companies demonstrate that investing in technical, financial, and operational consistency not only safeguards against risks—but significantly increases the return on someone’s original investment.
