By: Evan Merkel

While in Cyprus, you may find yourself wondering why there are so many abandoned buildings, stores, homes, and more. This is an issue that the island faces regarding its overall economic progress and the management of property holdings. When staying at the apartments in Larnaca, it is evident that some areas have a ghost town feeling. When traveling to different cities, you often experience the same feeling. Why is that? What are the causes for such abandonment, and for homes to be left empty and gutted out? The answer comes in many different forms, including regulations instilled when Cyprus joined the European Union, Cypriots’ refusal to sell their land, homes, and businesses, and the island’s inadequate infrastructure.

Cyprus is home to approximately 1,358,282 people as of 2024, who reside on the island. The country is renowned for being a major tourist destination for many Europeans, including the British. Annually, Cyprus welcomes approximately 4 million people to its sandy beaches and hot, humid weather. With that many people coming in, this should be an economic powerhouse of a country. Why is it struggling, and is it directly related to abandoned houses, shops, and projects? That can be answered by the number of elderly Cypriots who choose not to sell their properties. They believe that their property will sell for a higher price if they set a higher price than if they sell for less. They intend to sell the property that will “set themselves up for life”, which is not a great train of thought. This prevents new infrastructure from being built within the cities of Larnaca, Limassol, and Nicosia, for example.

In Nicosia’s old district, there has been a push to offer state incentives to encourage owners to sell their properties. Per the Financial Mirror, “Old Nicosia is being deserted, with more buildings declared dangerous, despite generous state incentives schemes to property owners”. People are owning these properties, and refusing to sell is causing a significant disruption in the country, which is on track to become the EU’s cultural capital by 2030.

There are hopes from the Cypriot government to begin the regeneration and revitalization of the inner city. In the European Union’s Recovery and Resilience Plan, Cyprus plans to convert these older buildings into student accommodation. This will enable more individuals to move to the island, thereby boosting the economy. The county has experienced overall economic growth year after year, ranging from 2.6% to 3%. However, with a large influx of new owners, the economy is expected to attract smaller businesses that promote a younger lifestyle and family-friendly homes.

Another issue that younger generations have noticed is the forced inheritance of properties. The way this works is that when someone passes away, due to laws in Cyprus, it is a forced heirship, which means that the children have to take responsibility for the property. To sell the property, all siblings must agree; a majority rule is not applicable. For example, a parent of 4 children holds a beachfront property that has not been used in decades. It is a concrete shell of what it once was. The parent then passes away, and the forced heirship becomes a problem for the four children. Three of the children want to sell the place, the fourth refuses due to sentimental feelings. This continues for years, and nothing is done with the property. One day, the oldest sibling, who has three children of their own, suddenly passes away. The issue then becomes more complex. The original number of four holders increases to seven, all of whom must be in agreement.

You can see where the issues originate, preventing people from selling buildings and land that are inherited in Cyprus. Although there is no direct correlation between the number of land holdings and the amount of land being held, it is presumed to be a substantial number.

Another larger issue comes from Russian Oligarchs. In 2022, Putin launched an attack on Ukraine, resulting in a war that continues to this day. Sanctions were issued against Russian Oligarchs who were profiteers of the war, and owners of large arms-dealing and contracting companies that aided Putin in his invasion of Ukraine.

The oligarchs found a way around being sanctioned by the European Union by opening offshore bank accounts in the country, which helped hide funds from seizure and freezing. Oligarchs would purchase property, yachts, companies, and trusts. The International Consortium of Investigative Journalists (ICIJ) conducted an investigation into money laundering in the country. “Petr Aven, one of the key strategists behind Russian financial powerhouse Alfa Group, used a Cyprus firm to shift $5 million outside of European authorities’ reach just as the ER was announcing sanctions on members of Putin’s inner circle, including him”( International Consortium of Investigative Journalists). These evasions would hit Avens’ real estate manager, who had to forfeit over $1 million.

In the eyes of European legislators, Cyprus was a “weak link” in the fight against money laundering. They have been scrutinized for their lack of laws against money laundering, to the extent that some of it is known about. The ICIJ had discovered a $1.4 billion investment that was sent to a Russian oligarch’s wife to evade the sanctions. The ICIJ states, “the Cyprus government had been aware of the suspicious transfer for months, but authorities had dragged their feet in responding” (ICIJ).

Cyprus has been taking positive steps to prevent a repeat of the actions by Russian oligarchs. The country has taken moves in recent years to correct this mistake. The government has implemented reforms to protect whistleblowers and increase transparency for the public. They have also established an independent authority to help combat corruption that occurs on the island. They have also increased anti-corruption training and awareness in the country to prevent this from happening again. All of these reforms were implemented in the country’s Official Gazette between January and July 2022.

With the housing and buildings being vacant, there are still a large number of shops around Larnaca, and Cyprus, that are abandoned. Some that have mail sitting inside the door, which have received neglect due to water damage and the sun. As in the states, businesses, especially small businesses, tend to be hit the hardest and are usually forced to close.

In Larnaca, every corner is littered with buildings that appear to have been left unfinished overnight. The main culprit is the high rent costs imposed on these businesses. One Reddit user stated that it was due to “landlords owning a building, not keeping the building up to code, and then charging tenants as if the building is brand new”. This comes back to the issue of older Cypriots who own these buildings and want to “set themselves up for life”.

However, some commenters have stated that many businesses have relocated to a local shopping mall here in Larnaca. Thus, due to the cheaper rent that the shopping mall is offering. This does not help the city improve its livability on the city streets. Some businesses have completely abandoned their premises, leaving wine bottles on the shelves and creepy mannequins in the windows.

While you stay in Cyprus, your awareness of the buildings will be at the forefront. It is a sore thumb that sticks out in everyone’s face and is generally ignored by the locals. Cyprus has had issues in the past with corruption, obscure and complex laws regarding land inheritance, and overpriced buildings. It has a certain charm, both in the country and the city of Larnaca. If you are a returner, one of your favorite businesses may be gone the following year. A restaurant you didn’t get to try the first time will have vanished without a trace the next time you’re here.

Go out and try new things; if you want to take advantage of the city’s uniqueness, branch out and explore. Experiment with new foods, cultures, and lifestyles. There is plenty to be had in Larnaca while you’re here. Because when you blink, it will be gone.