Elikkos Elia: Keen interest by land developers to invest in affordable housing market

The Permanent Secretary of the Ministry of Interior, Dr Elikkos Elia, expressed satisfaction at the interest shown by land developers to invest in the affordable housing market after the relevant state incentives were revised back in June.

He was addressing a seminar by the Cyprus Association of Large Investment Projects on behalf of Interior Minister Constantinos Ioannou, entitled “The new housing policy: From theory to practice.”

According to Elia, the special housing incentives with urban planning benefits are part of the government’s integrated housing policy and include a coherent network of innovative policies that provide for an increase in the maximum building factor. The aim is to involve the private and wider public sector in the production of housing stock, new and existing idle, and making it available at affordable prices.

As he explained, the urban planning incentives focus on three main areas, providing combinable possibilities to interested investors, depending on their own circumstances and planning.

These areas are:

First: Use of incentives and supply of affordable housing units for primary residences

Second: Use of incentives and supply of affordable housing units for holiday homes

Third: Full or partial redemption of the incentives and payment of the corresponding compensation to the Special Affordable Housing Fund.

According to Elia, the first urban planning applications under the revised incentives scheme have already been submitted, while a number of projects for affordable housing are under study and, soon, new applications are expected to be submitted.

Assuring that the Government's commitment to the issue of affordable housing is ongoing, Elias then referred to some of the remaining plans that have been drawn up and will be implemented in the next three weeks.

For example, he mentioned the "Renovate-Rent" project, which, like the urban planning incentives and the "Build to Rent" Plan, aims to boost the market with residential units.

The plan offers grants to owners of idle or even vacant houses, so that they can upgrade or renovate them, with the obligation to make them available on the market to beneficiaries of affordable rent.

At the same time, in the next three weeks, the Plan to grant financial aid to young people and/or young couples up to the age of 41 for the acquisition of a first home will be implemented.

Elia explained that under specific conditions that will apply, the measure aims to strengthen the possibility of access to housing for the socially sensitive group of young people.