Land Division Cyprus

Land Division to Separate Independent Plots

– A Time-Consuming and Complicated Process –

When selling a residential plot, many owners – mainly private individuals – determine the sale price based on current values ​​in the area. For example, a 10-acre plot, which can potentially be divided into 15 plots, with a price per plot of €200,000, leads the owner to estimate the value of the plot at €3,000,000 (15 x €200,000).

However, this approach is incorrect, as the division process involves significant costs and requires considerable time. It is crucial that the public understand the basic stages of this process.

Stages of Land Division:

  1. External Demarcation:

The plot must be demarcated to accurately define its boundaries.

  1. Application for Planning Permit:

An application is submitted for the issuance of a Planning Permit that will allow the conversion of the ‘Land’ into separate independent plots with separate whole share title deed for each one.

  1. Subdivision Permit:

The competent Local Authority or the District Governor issues the Subdivision Permit. At this stage, fees are paid for services such as water supply, electricity (EAC), telecommunications (CYTA – Cyprus Telecommunication Authority), and the construction of substations, where required.

  1. Determination of Heights and Lengths:

The submission of (a) an External Demarcation Certificate and (b) a Subdivision Permit is required. Up to this point, the process usually takes 1 – 1 ½ years, depending on the complexity of the case and the speed of processing by the competent services.

  1. Construction Tenders:

Bids are invited from builders, based on the terms and specifications of the permits.

  1. Infrastructure Construction:

The construction of roads, sidewalks and service networks follows. This phase lasts approximately 6 – 8 months for 10–15 plots, provided there are no delays.

  1. Certificate of Final Approval:

After the completion of the projects, a final survey/demarcation is carried out and the relevant Certificate is issued.

  1. Submission for Issuance of Title Deeds:

All necessary documents are submitted for the issuance of title deeds per plot. This stage can take an additional 1 ½ – 2 years.

Cost and Time

The total cost of separation – including permits, construction, services, supervision and other expenses – amounts to approximately €20,000 – €25,000 per plot. (2024 prices)

Therefore, for the separation of 15 plots, the total cost amounts to approximately €400,000.

Conclusions

The real value of a plot is not equivalent to the value of the plots that will result after the separation, simply deducting the construction costs. The investor who undertakes the process and the risk should earn a reasonable profit, including capital interest lost or paid for the period of the investment.

Therefore, before listing your property on the market, we strongly recommend that you seek the advice of a professional appraiser or real estate consultant for a documented and realistic valuation of your land.