Government Pledges Continued Support for Construction Sector
At a celebratory dinner commemorating the 40th anniversary of the Cyprus Property Developers Association (LBDA), President Nikos Christodoulides highlighted the crucial role of the construction sector in Cyprus’s economic landscape. The sector, bolstered by the LBDA, has been instrumental in attracting investments and fostering entrepreneurship, thereby cementing Cyprus’s reputation as a prime investment hub.
The president underlined the government’s commitment to prop up the construction industry, revealing plans for a high-level meeting with key stakeholders. This meeting, slated for late May at the Presidential Palace, will convene representatives from the Cyprus Employers & Industrialists Federation (Oev), the Cyprus Chamber of Commerce and Industry (Keve), and relevant ministers to deliberate on government initiatives.
Addressing the housing crisis, President Christodoulides outlined the government’s Build to Rent scheme. This initiative aims to alleviate housing shortages by offering incentives and tax reliefs to boost rental unit availability. Additionally, a special fund is set to be established to support housing policies and provide financial incentives for urban planning.
Efforts to combat bureaucratic hurdles were also discussed, with a central planning authority being designated to expedite applications related to special housing incentives. The president acknowledged the 22 measures introduced to streamline town planning and building permit procedures, marking them as a significant step forward.
President Christodoulides expressed gratitude towards the president of the Scientific and Technical Chamber of Cyprus (Etek) for their cooperation on these matters. He stressed that simplifying licensing processes is vital for spurring development and that efficient management of licensing applications, particularly for small-scale residential developments, is a priority.
The president also touched upon the importance of timely licensing in supporting not just the construction sector but also in aiding the reform of local government and the establishment of new District Self-Government Organisations from July 1, 2024.
Furthermore, he mentioned the government’s focus on facilitating strategic development projects through the application of relevant laws and regulations. The Ippodamos information system was introduced as a new tool for expedited licensing, aligning with the broader government objective to modernize state operations and reduce bureaucracy.
Urban regeneration measures were also addressed, with legislation submitted in December 2023 aimed at promoting sustainable land development and curbing haphazard expansion. The anticipated adoption of this law in 2024 is expected to significantly benefit real estate development and related businesses.
In closing, President Christodoulides reaffirmed the government’s dedication to nurturing the real estate sector through various supportive actions, ensuring its continued growth and contribution to Cyprus’s economy.
