Why Cyprus Property Buyers Will See Energy Class A on Every Shortlist from June 2026

Energy Class A becomes the new baseline for Cyprus property buyers
If you are shopping for Cyprus property in 2026, expect energy efficiency to be on the front page of every shortlist. BNO Developments, a Cyprus specialist that works with international buyers, relocation clients and investors, has announced that Energy Class A new-builds will become the default standard for the shortlists it prepares — starting 24 June 2026.
That move is more than a marketing tweak. In our analysis, it is a clear signal that energy performance has shifted from a sales feature to a long-term value consideration for buyers and lenders. The decision matters for anyone who plans to buy, rent out or resell new homes on the island.
What BNO actually said
- BNO Developments will lead its recommended shortlists with Energy Class A-rated properties for new-build homes across Cyprus.
- The policy comes into effect on 24 June 2026 and is a formalisation of an approach BNO advisers have followed informally for years.
- The company is clear this is guidance, not a ban: clients determined to purchase older projects will still receive support.
- BNO says Class A ratings are now an important consideration for both buyers and lenders and that homes with higher ratings are better positioned to retain value over time.
As Laura Papadopoulou, BNO’s Paphos advisor, put it: "A cheap home with a poor energy rating isn't a bargain. It's a problem you inherit at resale. I'd rather have the awkward conversation now than watch a client struggle to sell in five years." That straight talk is the rare kind of advice buyers need.
Why this move matters for buyers and investors
There are three practical reasons to pay attention.
- Resale liquidity and pricing
- BNO argues that Class A homes have stronger long-term resale potential. That matters for investors and owner-occupiers who may sell in a five- to ten-year horizon.
- A property with a low energy rating can be harder to market, because running costs and upgrade needs are visible to future buyers.
- Financing and lender appetite
- The firm highlights that energy performance is an increasing factor in lending decisions. Lenders are more cautious about properties with higher projected running costs because those affect borrowers' net disposable income.
- For buyers seeking mortgages, an Energy Class A certificate may improve the chances of a smooth approval process and comparably favourable lending terms.
- Operating costs and tenant demand
- Higher energy performance typically reduces heating, cooling and hot water bills. For buy-to-let landlords, that improves net yields and tenant demand.
- Tenants, especially relocating professionals and international families, expect modern standards of comfort and predictable running costs.
What does Energy Class A mean in practice?
Energy classes are based on a building’s energy performance certificate (EPC) and reflect how much energy is needed for heating, cooling, lighting and hot water. While the EPC framework varies by jurisdiction, Class A indicates one of the best energy performances available for new homes in Cyprus.
In practical terms, Class A new-build attributes often include:
- High levels of thermal insulation in walls, roofs and floors
- High-performance windows and glazing with low U-values
- Mechanical ventilation with heat recovery or efficient HVAC systems
- On-site renewable generation such as solar PV for hot water and electricity
- Smart meters and thermostatic controls for efficient consumption
These features reduce energy demand and make actual running costs closer to the developer’s projections.
How developers will respond — and what buyers should watch for
Developers already compete on finishing standards and layouts. Expect energy performance to become a competitive axis as well. But buyers need to be discerning.
What to expect from developers:
- More projects marketed with Energy Class A badges
- Technical specs in sales brochures showing insulation, window types, and renewable systems
- Increased use of certification, performance testing and third-party validators
What buyers should verify before committing:
- Ask for the building's official EPC or the draft certificate from the developer.
- Request detailed specs: U-values for walls/roof/windows, HVAC model and efficiency ratings, solar PV capacity, battery storage if any.
- Confirm whether performance claims are for the design stage or certified in-use performance testing.
- Ask about warranties and maintenance obligations for mechanical systems.
Checklist for international buyers and expats
Buying overseas adds layers of complexity. Here are practical steps we recommend:
- Confirm the EPC rating is official and current, not just a marketing summary.
- Request a breakdown of estimated annual energy costs and the assumptions used.
- Check if homeowners’ association fees include maintenance for shared energy systems like heat pumps or communal solar.
- Discuss financing options with lenders who operate in Cyprus and ask whether they consider energy ratings when underwriting.
- Factor energy performance into your resale scenario: higher initial price for Class A may be offset by better marketability and lower bills.
Risks and caveats buyers should not ignore
Energy Class A is useful, but it is not a guarantee.
- Performance gap: Buildings often underperform versus design models because of occupant behaviour, poor installation or commissioning failures.
- Greenwashing: Some developers use selective data or optimistic assumptions; insisted documentation is essential.
- Higher up-front costs: Class A features can increase build costs, which may raise asking prices and reduce rental yields in the short term.
- Retrofit constraints: Older homes without Class A ratings can be expensive and complex to upgrade, especially in multi-unit blocks.
Buyers should weigh these risks against the benefits and consider commissioning an independent technical review where possible.
Market implications for Cyprus real estate in 2026 and beyond
BNO expects the market to keep moving toward higher-efficiency homes through 2026 and after. We see several likely effects:
- Rising supply of Class A new-build inventory as developers adapt to demand.
- A premium for verified Class A products in buyer searches and shortlists.
- Greater emphasis by brokers and consultants on energy performance when advising international clients.
- Increased pressure on sellers of older stock to invest in upgrades or accept lower sale prices.
For investors targeting rental returns, this may tighten the supply of affordable modern units while improving tenant expectations for energy costs and comfort.
What this means for Russian-speaking and other international buyers
BNO works with a wide range of international clients. While the company did not single out particular nationalities, the change affects anyone buying from abroad — including Russian-speaking buyers who have historically been active on the island.
Key points for overseas buyers:
- Energy ratings are now a standard filter for professional advisers, so expect Class A to appear in broker shortlists.
- If you plan to finance the purchase in Cyprus, discuss energy performance with your lender early.
- For residency or relocation planning, lower energy bills and modern systems ease the transition to island life.
How to judge the price premium for Class A
Price behavior will vary by location, unit type and developer credentials. A useful approach is a simple cost-benefit exercise:
- Compare the price difference between a Class A unit and a similar lower-rated unit.
- Estimate annual energy cost savings from the Class A unit.
- Factor in likely stronger resale demand and shorter time on market for the Class A product.
- Adjust for any extra maintenance or service charges related to advanced systems.
If the payback period for the energy premium fits your holding period and liquidity needs, the Class A unit can be a rational choice for many buyers.
Practical negotiation points when buying a Class A new-build
- Seek explicit contractual clauses that list the energy-related specifications and performance targets.
- Ask for penalties or remediation steps if delivered performance diverges significantly from the promised rating.
- Request documentation of commissioning and testing on handover day.
- Negotiate for inclusion of smart meters and clear data access so you can monitor in-use performance.
These points shift some performance risk back to the developer and protect your resale route.
Frequently Asked Questions
Q: What is Energy Class A, and how is it measured in Cyprus?
A: Energy Class A is a top-tier energy performance rating on the building’s energy performance certificate (EPC). It reflects low projected energy demand for heating, cooling, hot water and lighting. Buyers should request the official EPC and supporting technical data from the developer.
Q: Will lenders in Cyprus require Energy Class A for mortgage approval?
A: Lenders are increasingly taking energy performance into account when assessing risk, but there is no universal requirement that mortgages must be on Class A homes. You should discuss the property’s rating with potential lenders early in the process; better ratings can ease underwriting in many cases.
Q: Can an older home be upgraded to Class A?
A: Upgrading an older property to Class A is possible but often costly and complex, especially in multi-unit buildings. Upgrades may include insulation, window replacement, efficient HVAC and renewable systems. Evaluate retrofit costs against potential increases in sale price or rental income.
Q: How can I protect myself against misleading Class A claims?
A: Verify the official EPC, ask for independent technical checks when possible, insist on contractual performance obligations, and request commissioning records at handover.
Our final take
BNO Developments’ decision to make Energy Class A the default for its Cyprus new-build shortlists from 24 June 2026 is a clear market signal. For buyers and investors this is not just about lower utility bills. It is about resale flexibility, lender confidence and how properties are marketed to an increasingly discerning international audience.
If you are in the market now, start demanding transparent EPC documentation, build energy performance checks into your due diligence and factor energy ratings into your resale assumptions. BNO’s move puts a date on that shift: shortlists will default to Class A from 24 June 2026. That is the practical fact buyers and advisers should plan around.
We will find property in Cyprus for you
- 🔸 Reliable new buildings and ready-made apartments
- 🔸 Without commissions and intermediaries
- 🔸 Online display and remote transaction
International Real Estate Consultant
Subscribe to the newsletter from Hatamatata.com!
Subscribe to the newsletter from Hatamatata.com!
Popular Posts
We will find property in Cyprus for you
- 🔸 Reliable new buildings and ready-made apartments
- 🔸 Without commissions and intermediaries
- 🔸 Online display and remote transaction
International Real Estate Consultant
Subscribe to the newsletter from Hatamatata.com!
Subscribe to the newsletter from Hatamatata.com!
I agree to the processing of personal data and confidentiality rules of HatamatataNeed advice on your situation?
Get a free consultation on purchasing real estate overseas. We’ll discuss your goals, suggest the best strategies and countries, and explain how to complete the purchase step by step. You’ll get clear answers to all your questions about buying, investing, and relocating abroad.
Sales Director, HataMatata