Cyprus developer makes Energy Class A the new default for new-build shortlists

BNO Developments makes energy efficiency a baseline for Cyprus property buyers

On 24 June 2026 BNO Developments announced a change that will affect anyone shopping for Cyprus property: Energy Class A-rated homes will become the default standard for the new-build shortlists the firm provides to international buyers, relocation clients and investors. This is not a PR line. It is a formal shift in what an influential adviser will present to clients when searching for new homes across Cyprus.

That matters because energy performance has moved from a marketing point to a resale concern. BNO says a poor energy rating can undermine resale value and make lending harder. As Laura Papadopoulou, the firm's Paphos adviser, put it: “A cheap home with a poor energy rating isn't a bargain. It's a problem you inherit at resale.” The company also makes clear this is a guideline, not an absolute ban: clients can still request older projects, but default shortlists will favour Class A new-builds.

In our analysis, BNO's move is more than a single firm's policy. It signals a shift in buyer expectations and the practical economics of owning property in Cyprus: running costs, lender scrutiny and future resale are all changing how investors and homeowners value a home.

Why this announcement matters for the Cyprus property market

BNO Developments operates as an intermediary for international buyers, relocation clients and longer-term investors looking for new-build homes. When a company that connects buyers, developers, lawyers and mortgage partners adopts a new baseline, the downstream effects can be fast:

• Shortlists will prioritise homes with Energy Class A certifications. That changes what properties buyers first see and consider.
• Developers will feel pressure to offer higher-performance builds if they want access to the pool of buyers who use advisers like BNO.
• Lenders and mortgage brokers may increasingly treat energy rating as part of affordability and collateral assessment, a dynamic BNO says it is already observing.

This is not a regulatory mandate. It is market pressure from an adviser with a client base that includes international buyers and relocators. Still, market pressure can move supply and pricing faster than regulations.

What Energy Class A actually means for buyers and investors

Energy Class A is a label that denotes high energy performance for a building. For buyers it translates into three practical benefits and one key trade-off:

• Lower running costs: better insulation, efficient heating/cooling systems and often integrated renewable systems reduce electricity and fuel bills.
• Easier resale prospects: BNO's view, echoed by many brokers, is that homes meeting modern efficiency standards hold value better over time.
• Mortgage and lending advantages: lenders are starting to scrutinise energy performance because it affects both borrower costs and collateral quality.

Trade-off:

• Higher purchase price or development premium. Developers incur higher upfront costs to reach Class A; some of that is passed to buyers. The premium can be offset over years via lower running costs, but cash buyers and investors should model payback periods carefully.

For buyers in the Cyprus property market this means asking for the Energy Performance Certificate (EPC), detailed specifications on the thermal envelope and a clear estimate of running costs. We recommend a simple calculation: compare the expected annual energy bill savings against any price premium to estimate how many years until payback.

How developers and the supply side will respond

BNO's decision formalises a pattern advisers have followed for some time. Developers who want to reach the growing segment of international buyers and relocation clients will face choices:

• Build to Class A from the outset, absorbing or passing on the cost.
• Retrofit or upgrade existing schemes before handover to meet client expectations, which can be costly and complex.
• Focus on lower-cost markets or buyer segments that remain indifferent to energy performance.

From an investor perspective, the winners will likely be projects where developers can deliver Class A at scale and without compromising build quality. Those projects may command a premium in coastal areas and resort towns where international demand is strongest.

But there is a risk of greenwashing. Not every developer label or marketing claim equals genuinely lower running costs. Buyers must verify documentation and, where possible, obtain independent technical assessments prior to exchange.

What buyers should ask for: a practical checklist

If you are considering Cyprus property, especially a new-build, insist on seeing or requesting the following before making an offer:

• Energy Performance Certificate (EPC) showing the property’s energy class and the basis for the rating.
• A detailed specification showing thermal insulation levels, glazing U-values, heating and cooling systems, and whether there is mechanical ventilation with heat recovery or passive systems.
• Information about on-site renewables, such as solar photovoltaic panels or solar water heating, and whether these are included in the purchase price.
• Estimated annual running costs and assumptions behind those estimates (energy prices used, occupancy patterns).
• Warranty and testing documentation for airtightness and thermal performance where available.
• Clear disclosure of any planned future works in the development that could affect energy use (e.g., shared heating plant, communal facilities).

For investor buyers add:

• Comparable sales data showing how Class A properties have performed versus lower-rated units in the same area.
• Mortgage pre-approval terms that reflect the intended property's energy rating.

We advise buyers to include an energy clause in reservation contracts where feasible: require the developer to deliver specific features that justify the Class A rating, and tie any penalties or price adjustments to failure to meet those features.

Lenders, valuation and the resale equation

BNO cites lenders as taking energy ratings more seriously. That is consistent with broader trends in many European markets: lenders are concerned with the cost of ownership because it affects affordability and the value of collateral over time.

For valuations, energy performance can affect net operating costs for buy-to-let investors and perceived desirability for owner-occupiers. A few practical consequences:

• Properties with higher energy ratings may be easier to finance and could attract better mortgage pricing or longer terms from banks that factor carbon and running costs into underwriting.
• Lower-rated homes could become harder to refinance or sell without price discounts if buyer expectations shift and running costs remain high.

We should be candid: the extent to which lenders in Cyprus will change underwriting models is not determined by one firm’s policy. But when advisers, developers and buyers move together, lenders pay attention.

Risks and caveats for buyers and investors

BNO's change is sensible for buyers focused on long-term holding and for expatriates who will live in their homes. Still, there are several risks to weigh:

• Price premium vs payback: Class A features cost more. Buyers must run numbers on how long it takes for lower bills to cover higher purchase prices.
• Quality control: A project promoted as Class A must actually deliver. Post-handover defects or corner-cutting can reduce performance.
• Availability: If demand outstrips supply of genuinely high-performing new builds, competition could push prices up in specific enclaves.
• Regulatory changes: Future energy or building regulations could tighten standards further, potentially increasing renovation costs for older homes.

We recommend independent technical due diligence and realistic cash-flow modelling.