Fraud in the Cyprus Real Estate Market: What Threatens Tenants and Buyers

Photo: Cyprus Mail

A sharp rise in fraud has been recorded in the Cyprus real estate market: hundreds of people have become victims of individuals posing as licensed real estate agents. Three to five criminal cases related to illegal brokerage activities are initiated every day, reports the Cyprus Property Buyers portal, citing data from the Cyprus Real Estate Agents Registration Council.

Scale of the problem

The council notes that the scale of the problem has grown significantly in recent years. In 2018, courts examined 25 cases, convicting 10 companies and 25 individuals. In 2019, there were 28 such cases, with 15 companies and 30 individuals convicted. In 2020, 37 cases were registered, resulting in convictions for 22 organisations and 40 individuals. In 2021, the courts handled 50 cases involving 20 companies and 55 individuals. In 2022, the number of cases reached 460, 55 of which ended in convictions for 25 companies and 45 individuals.

Since 2023, the council’s legal department has filed 565 criminal cases against individuals and companies violating real estate legislation. To inform the public, the names of convicted persons are published on the ktimatomesites.com website, where a list of licensed real estate agents authorised to operate on the market is also available.

The chairman of the Cyprus Real Estate Agents Registration Council, Marinos Kineyirou, said that the policy of zero tolerance for illegal brokerage activity is not a declaration but part of daily practice. Over the past three years, inspection teams have been significantly strengthened in both numbers and professional training. These teams operate across all districts of the country to promptly identify illegal intermediaries and file criminal cases against both individuals and companies.

Fraud schemes targeting tenants

Complaints about illegal intermediaries are increasing. They come from both professional agents and private individuals who have encountered attempts at fraud. According to the council, victims are lured by various schemes, including:

fake or double sales of land plots and houses;

renting out properties that do not belong to the “agent”;

collecting advance payments or commissions.

Cyprus Mail reports a sharp surge in fake property listings for sale and rent on online platforms where ads are not verified. Fraudsters use stolen photos, fake addresses, and attractive prices to quickly obtain advance payments. Once the money is transferred, the “agent” disappears, and the property turns out to be inaccessible or non-existent. Foreigners, students and those entering the Cypriot rental market for the first time are particularly vulnerable. Fraudsters use temporary phone numbers and email addresses, which complicates identification and slows investigations.

To stay safe, several basic rules should be followed. Deposits should not be transferred before viewing the property in person; documents confirming ownership must be checked; it is essential to ensure that the person offering the property is genuinely connected to it. An agent’s licence must be valid and verifiable through the official registry. Unusually low prices, urgent demands to “reserve” the property, and evasive answers are signs that should raise concern.

It is also recommended to save correspondence and copies of listings — this helps when contacting the Cyprus Real Estate Agents Registration Council or the police. In a low-transparency environment on open platforms, such measures remain the only way to protect oneself from fraudulent schemes.

Risks for buyers

There are also many risks for investors in the Cyprus real estate market, notes the Regulated United Europe portal. A significant part of the problems is related to the unclear legal side of transactions. One of the most common complications is the absence of properly issued ownership documents — the so-called title deeds. In such cases, a buyer can pay for a property and sign a contract yet still fail to obtain confirmed ownership status. If a property has debts, encumbrances or incomplete registration procedures, the issuance of title deeds is delayed indefinitely and often leads to additional expenses.

Another category of risks involves hidden legal disputes, which sellers prefer not to mention. The market includes properties with mortgages, court claims or restrictions that may complicate future ownership. Without thorough due diligence, the buyer may be drawn into lengthy litigation or lose the ability to freely dispose of the property.

Problems also arise during negotiations. Preliminary agreements sometimes contain unfavourable conditions, hidden fees or clauses that leave room for the seller or developer to manoeuvre. Buyers sometimes sign such documents without realising that they are assuming additional obligations or limiting their rights.

Foreigners are particularly vulnerable when choosing legal representation. If a lawyer is recommended by an agent or developer, the risk of a conflict of interest increases. In such cases, document checks may be superficial, and critical details remain unnoticed until significant payments have been made.

Financial risks are often underestimated as well. The total cost of a transaction frequently exceeds initial expectations: taxes, fees, legal services and expenses for issuing title deeds add up. If these costs are not considered in advance, the final amount becomes much higher than expected. Limited transparency in certain projects also adds uncertainty: not all properties have a clean history, and the construction of new developments is sometimes delayed or subject to changes.

Conclusion

Analysts at International Investment note that Cyprus can present unpleasant surprises — especially for those entering the property market for the first time. The authorities are trying to restore order, including by creating inspection structures to oversee construction, yet the sector remains opaque and systemic problems persist.

In addition, despite rising prices and rents, gross yields have fallen in most segments. Holiday apartments generate 5.68%, but after accounting for taxes, maintenance and marketing costs, the net figure is around 3.68%. For houses, yields stand at 2.97% and 0.97%, for apartments — 5.42% and 3.42%. The overall return is low and may decrease further due to vacancy periods, which are common in the rental market.

The situation is further complicated by frequent legislative changes, including measures affecting property owners and certain categories of foreign buyers, especially Russian nationals. This increases uncertainty and makes investment planning more difficult.