Nicosia: Cyprus' land development and construction sector is entering a phase of full digitalisation and simplification of permitting procedures, with the Government placing housing policy at the top of its priorities in order to address growing pressures in the property market. Speaking on Wednesday at the 16th Nicosia Economic Congress, Minister of Interior, Constantinos Ioannou, highlighted the importance of the construction sector as a key driver of economic growth and referred to the major reforms being implemented to create a more flexible and citizen-friendly regulatory environment.
According to Cyprus News Agency, Ioannou said that the introduction of the fast-track licensing procedure for low- and medium-risk developments has already delivered tangible results. More than 2,100 applications for up to two residential units were processed within 40 working days, while 660 applications for apartment buildings were examined within 80 days. Under the previous framework, he noted, these procedures would typically require 12 to 20 months to complete.
Within the same reform framework, the Minister announced the modernisation of the Department of Lands and Surveys, with the project expected to be completed by 2027. The reforms include the digital submission of applications, cooperation with private valuers in auction procedures, and the creation of specialised teams to accelerate the examination of right-of-way cases.
Referring to the strong pressures on the housing market due to geopolitical developments and rising construction costs, Ioannou stressed that the government's objective is to increase the housing supply.
"The pressures on the housing market in recent years have been significant. Geopolitical developments and their impact on construction costs, material prices and labour shortages have led to a reduction in supply while demand and prices continue to increase," he said.
"For the Government, housing policy is a top priority. Access to affordable and quality housing is a fundamental social good that we must safeguard, particularly for young couples, young families, and households with low and middle incomes," the Minister added.
To support the development of affordable housing, the Government is offering planning incentives with increased building density of up to 45%. According to the Minister, more than 2,500 housing units are expected to be created over the next two years, of which around 400 will be allocated as affordable housing.
At the same time, £12.5 million is expected to flow into the Affordable Housing Special Fund of the Cyprus Land Development Corporation. Ioannou also noted that the Cyprus Presidency of the Council of the EU aims to strengthen dialogue on the European Plan for Affordable Housing.
The Minister said, moreover, that Cyprus continues to have important comparative advantages, including its strategic geographic position, high-quality services, a strong legal and institutional framework, and a skilled workforce.
"In a period of geopolitical uncertainty, these characteristics can make Cyprus a safe and attractive destination for investment and business activity," he said.
At the same time, he stressed that the success of this effort requires the cooperation of all stakeholders, including the state, the private sector, industry professionals and investors.
"Our common goal is to maintain the sector's growth momentum, strengthen its competitiveness and shape a sustainable development model that combines economic progress with social cohesion and quality of life," the Minister noted.
The Minister of Interior also referred to new measures for the management of historic and preserved buildings, including an increase in the maximum recognised restoration cost and the introduction of fast-track licensing procedures aimed at safeguarding and reusing architectural heritage.
"Through a series of measures, our objective is the comprehensive protection of important buildings and the historic centres of our cities and villages. At the same time, we aim to facilitate property owners in restoring and reusing these buildings," Ioannou said.