Two terms that come up regularly in property valuation — and cause considerable confusion among owners — are compulsory acquisition and road widening (ρυμοτομία). Both involve the loss of part of a property for public benefit, and both can give rise to compensation. They are, however, distinct legal processes.

Compulsory Acquisition

Compulsory acquisition is the forced transfer of ownership rights. Under Cyprus law it is only permitted where it serves the public interest and is accompanied by the advance payment of fair and reasonable compensation — taking into account both betterment and injurious affection.

The process under the Compulsory Acquisition Law of 1962 is as follows:

• Publication of the acquisition notice in the Official Gazette
• Service of the notice on every affected person
• A 30-day period for objections
• All objections must be examined within 12 months
• A written compensation offer must be sent to the affected party within 14 months
• The affected party may: (1) accept the offer, (2) accept it under reservation — preserving the right to apply to court for a determination of compensation — or (3) ignore it, in which case the court determines the final amount
• If works have not commenced within three years of the acquisition, the property must be returned to its owner

Compensation for Compulsory Acquisition

Article 10 of the Law sets out the detailed valuation rules:

• The basis of compensation is market value at the date of the acquisition notice
• The following are disregarded in the assessment:
  • The compulsory nature of the acquisition
  • Betterment arising from works carried out during requisition
  • Special value of the property
  • Value attributable to unlawful or unhealthy use
• Where only part of a property is acquired, any increase or decrease in the value of the retained part is taken into account
• Severance damage — where the acquired part is separated from other land held in conjunction — is also compensable
• Any other loss caused by the acquisition is included in the compensation
• Statutory interest accrues from the date of publication of the acquisition notice

It should be noted that proving betterment or injurious affection before a court is among the most technically demanding exercises for an expert valuer. In practice, the Land Registry's valuation and that of a private valuer often differ, and both positions are presented before the court for a final determination — though out-of-court settlements are not uncommon.

Road Widening (Ρυμοτομία)

Road widening, in general terms, refers to the planned reorganisation of space within or around a settlement. It encompasses public interest works such as the creation of squares, widening of roads, demarcation of plots, and the allocation of green spaces.

This work is governed by planning principles, contemporary design standards, and practical considerations intended to serve the needs of the area for decades ahead. The conclusions of road widening studies are incorporated into the road widening plan (ρυμοτομικό σχέδιο) for each area.

The most common scenario is a property owner applying to demolish an existing house and build a block of flats. The Planning Authority may impose road widening as a condition of development approval — typically requiring the widening of an adjacent road before a permit is issued.

Compensation Rules for Approved Plots (Οικόπεδα)

Where a plot has already been separated — meaning deductions for green space and road network have already been applied to its area in the past — the following rules apply:

Rules for Unplotted Parcels (Τεμάχια)

Where a parcel (not a plot) is affected by road network:

• If affected by up to 40%: the development coefficient and coverage ratio are calculated on the net remaining area
• If affected by more than 40%: both are calculated on 60% of the original area, provided no overdevelopment conditions arise

Binding Road Widening (Δεσμευτική Ρυμοτομία)

Under the Streets and Buildings Law, the competent authority may prepare road widening plans that are binding on all affected parties. No permit may be issued except in accordance with these plans.

Where a permit is issued subject to a condition of road widening, the surrendered land becomes part of the road without any compensation — unless it can be demonstrated that material damage or a substantial reduction in value would result. In such cases, the authority is obliged to pay reasonable compensation having regard to all the circumstances.

Trifonas Mamas 

Property Valuer (MRICS–ΕΤΕΚ) 

Registered Estate Agent