21.03.2022
Unfortunately, building density is used as a tool to attract votes, both at the grassroots level of local councils and communities, and at the highest level of political parties and the ruling government.
Increased building density encourages development, exemplified by hotel upgrades and expansions, and more creative changes such as de-density of covered porches, lobbies, etc.
But still, I would like to note the non-exclusion of common areas (for example, common use corridors), which could provide more comfortable living for residents.
Unfortunately, there is no single body that understands real estate development in its entirety.
For example, when the government wants to increase the supply of rental units (to reduce housing price and rent increases), investors who buy or build rental units are subject to a 19 percent VAT, which increases their value.
I proposed to reduce in such cases the 19% VAT to 5% (for own needs).
If the investor sells the property within ten years of the acquisition, the balance of 14 percent must be paid back to the government.
In addition, there is a nauseating indifference of Parliament and Government to the General Expenditure Act, which does not work and creates social and financial problems.
It is for these (and other) reasons that we have proposed the creation of a Deputy Ministry of the Interior, whose task will be to improve the situation with the procedures and development of the land administration.
With the current system and the indifference shown by the majority (including the Technical Chamber and developers), there is no chance for improvement in the near future.
Antonis Loizou & Associates EPE – Real Estate Appraisers, Real Estate Agents and Real Estate Consultants
