09.05.2024
President Nikos Christodoulides said that the construction sector, supported by the Cyprus Property Developers Association (LBDA), plays a very important role in attracting investment, promoting entrepreneurship and positioning Cyprus as an investment destination.
The President emphasized the government’s intention to support the construction sector. He mentioned an upcoming meeting with representatives of various associations, including the Cyprus Federation of Employers and Industrialists (OEV) and the Cyprus Chamber of Commerce and Industry ( KEVE ) and ministers. The meeting is scheduled for the end of May at the Presidential Palace.
During the event, President Christodoulides outlined the Government’s actions to address the housing crisis, in particular the Build to Rent scheme, which combines urban planning incentives with tax breaks to increase the number of residential rental properties on the market, offering significant economic benefits to investors in land development.
It is also planned to create a special fund to support housing policy, allowing for the payment of financial compensation and the provision of benefits for urban planning.
President Christodoulides also presented 22 measures to simplify and modernize construction permitting procedures. “I am well aware that these measures will not completely solve the problem, but they are an important first step,” the president said. “There are laws that need to be pushed through the House of Representatives, but these measures are aimed at more effectively managing residential development licensing applications, initially on a small scale, in collaboration with private planners who are now making a significant contribution to driving such developments forward,” he added. He then thanked the President of the Cyprus Science and Technology Chamber (ETEK) “for his cooperation on this matter.”
The President emphasized that reforming and simplifying licensing procedures is critical to promoting the development of the construction sector. He added that timely licensing not only stimulates the construction sector, but also supports the upcoming local government reform and the functioning of new district self-government organizations starting July 1, 2024.
The President also noted: “In the same context, facilitating the licensing of strategic development projects is another goal of the government, implemented through the application of the relevant law.” Following the recent submission of relevant resolutions to the House of Representatives and the competent House committee, “proceedings for the full implementation of the law have begun, which will be critical,” he added.
President Christodoulides also highlighted the Ippodamos information system, which he called a new tool to speed up licensing. “The introduction of e-applications is linked to the government’s broader efforts to modernize the state and reduce bureaucracy, thereby creating a business-friendly environment while enhancing the competitiveness of our country to become an even more attractive business destination,” he said.
In collaboration with the House of Representatives, “legislation is expected to be passed during 2024 that will make a significant positive contribution to real estate development, bringing significant benefits to both landowners and developers,” he added.
