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Causes and consequences of the increase in building permits for the Cyprus property market

Causes and consequences of the increase in building permits for the Cyprus property market

Cyprus saw a sharp rise in the number of building permits issued in June 2024, as local authorities tried to speed up the processing of a backlog of applications before handing over this responsibility to the newly created District Authorities ( EOAs ). According to the Cyprus Statistical Service ( CySTAT ), the number of permits issued by municipal and district authorities amounted to 1,528, a 150% increase compared to June last year, when only 610 permits were issued.

There have been disagreements between municipalities and the new district governments over the issuance of building permits, according to Green Party MP and member of the House of Representatives’ Committee on Internal Affairs Stavros Papadouris , the permitting process requires serious reform. He stressed that there is a problem of fast-tracking applications through corruption schemes, where priority is given to those applications that were submitted only a few months ago, while others have to wait more than a year.

It is also reported that during the transfer of cases from previous planning authorities to the EOA , some applications were lost, leading to an even greater backlog of applications. This raises concerns about illegal construction, as delays in licensing create opportunities for such activities.

Chairman of the Scientific and Technical Chamber of Cyprus ( ETEK ) Constantinos Konstanti criticized the Interior Ministry for a poorly planned construction amnesty that added another 15,000 applications to the existing 30,000 cases. He also noted that the lack of coordination between the ministry and ETEK exacerbates the problem.

There is also discussion about who will be responsible for demolishing dangerous buildings. Neither municipalities nor district governments want to take on this responsibility because of the high costs associated with such work. It has been suggested that the transfer of this responsibility should be delayed for a year in order to find ways to finance the EOA , which is planned to be self-financing.

The overall situation with building permits in Cyprus demonstrates the need for reform and clear regulation to avoid corruption and ensure safe development of urban areas.

 

Text based on materials from www.news.cyprus-property-buyers.com, photo pixabay.com

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