The Audit Office has issued a new report that attributes responsibility to both the Nicosia Municipality and the Nicosia District Local Government Organisation (DLGO, though better known by its Greek acronym EOA) for repeatedly renewing the building permit of a project left half‑finished in the heart of the capital. The report also highlights gaps in the Interior Ministry’s legislation, which fails to provide authorities with the necessary tools to intervene.
The seven-story structure, situated on one of the capital’s busiest commercial roads – Spyros Kyprianou Avenue – marks the skyline with its exposed metal frame that has been rusting in place for 14 years without any progress.
According to the report, the abandonment of such developments creates multiple problems:
- It harms the appearance of the capital.
- It negatively affects neighbouring plots.
- It causes visual pollution.
- Despite fencing, full restriction of access is not guaranteed. (The report notes that a human body had previously been found inside the construction site.)
- The visible corrosion of materials must be assessed by the EOA to ensure the safety of passers‑by.
- It increases the risk of contamination and potential public‑health hazards.
The report notes that authorities failed to enforce a key condition of the original planning permit: that at minimum the building’s external façade should be completed “so that the appearance of the city is not aesthetically affected”. This requirement, if not met, should normally result in the cancellation of the permit. Despite this, no pressure or fines were imposed on the owners.
The Audit Office therefore urges the Interior Ministry to review existing legislation so that authorities are equipped to effectively address similar situations.
Permit history
The building’s licensing history is long and unproductive. In addition to repeated permit renewals, the Audit Office found deviations from approved plans without meaningful progress.
The first planning permit was issued in 2010, followed by a building permit in 2011 valid until 2016. The project was approved as an eight‑storey concrete building comprising a shop, apartments, offices and three levels of underground parking. Instead, the developer erected a seven‑storey metal frame without securing approval for the change in construction method, which could affect the building’s static and dynamic behaviour.
In 2022, following a change of ownership, a new planning application was submitted to legalise the structure. Between 2022 and 2024 – 11 years after the original permit – the Nicosia Municipality issued five planning permits, valid until July 2028. A revised building permit, submitted to the EOA on 5 December 2025, is still pending.
The new planning permit includes a change of ground floor use from retail to café, requiring 21 additional parking spaces under current law.
Planning permits determine location, use and size; building permits concern structural safety. Both are now issued by the EOA.
EOA’s position
In November 2025, the EOA informed the Audit Office that project engineers had recently assured them there was “no intention to abandon the project” and that delays stem from the need to revise existing studies. Adjusting the current metal frame to meet modern building and fire safety regulations is proving challenging.
The EOA said it inspects inactive construction sites – including this one – and found the site fenced while not posing immediate danger to pedestrians.
Both the EOA and the Audit Office acknowledge the difficulties in completing the project, including the change of ownership and the 2013 financial crisis. Demolition would also be far more expensive than completing the structure.
However, the report stresses that flexibility offered to owners “must not become automatic or taken for granted”, describing the EOA’s stance as passive.
Big picture
The report highlights a longstanding problem of managing stalled developments – an issue not limited to Nicosia but present across all districts. Beyond aesthetics, it raises institutional concerns, creating “a perception of tolerance and lack of effective oversight”.