Interior Minister: The new government’s priorities for real estate

Interior Minister Constantinos Ioannou analysed the new government’s priorities for the local real estate industry, in his address to the 17th Real Estate & Construction Conference & Exhibition on Wednesday.

The minister made some important announcements during his speech, including the government’s plan to introduce a Common Housing Agency and new incentives. He also revealed plans to accelerate and simplify licensing procedures so that licence applications can be processed and completed within the space of a year, through a regulated town-planning and building framework. He said the aim was to upgrade and modernise the sector and the way it functions.

According to Ioannou, the interior ministry has taken huge strides in forming a modern framework to encourage development activity in Cyprus in recent years. “As the new government, we are taking the next step. That is, to develop or even transform where needed, the policies that will enhance the land development sector even further,” said the minister. “We are aiming for a comprehensive, inclusive development policy framework – with the inclusion of the private sector.”

He said the contribution of the private sector is vital, as the experience, innovative practices and expertise it has to offer can lead to more effective and efficient policies and actions.

Saying the real estate sector is one of the most important pillars of the Cyprus economy, Ioannou pointed out that despite negative international developments last year, investments in Cyprus continued to follow an upward trend, which has carried on in 2023. “Cyprus remains an attractive destination for foreign investors and property buyers and this is expected to be reinforced even further with the Bill that was recently approved by the Council of Ministers to assist large and strategic developments,” said the Minister.

The bill, he said, provides for a simplification and acceleration of procedures so that permits are issued no later than a year after the application was submitted. This will be made possible through a regulated planning framework for swift licensing that will be achieved through the creation of a modern one-stop-shop.

As for the new government’s housing policy, the minister echoed other speakers’ concerns that Cyprus has seen an unprecedented rise in the cost to build a home in recent years, especially in certain parts of the island. “High construction costs and the difficulties in securing financing has mainly affected the lower-earning population groups, but also the medium earners, who have been pushed out of the housing market leading to a social rift with instability and inequality,” said Ioannou.

As regards affordable housing, the minister said the government planned to help the lower earning population groups by enriching the planning and other incentives available. This will be achieved by increasing the building co-efficient, he said, which will lead to the creation of more residential units for social purposes and also encourage the diversification of the local real estate sector’s product offering.

Another measure in the works is the revision of the country’s Town-planning zones, which Ioannou said will respond to society’s real needs as well as the financial trends, the energy crisis and climate change.