Government will continue supporting the construction sector, President says

The construction sector is one of the most important pillars of the economy, President Nikos Christodoulides has said, stressing the Government's intention to support the sector.

Speaking at an 8 May dinner on the occasion of the 40th anniversary of the establishment of the Cyprus Land and Building Developers Association (LBDA) the President noted that the multi-level action of the LBDA, has proven to be of vital importance for the general effort to attract new and important investments, strengthening the development of domestic entrepreneurship and highlighting Cyprus as an investment destination, in the European and international arena.

President Christodoulides referred to the actions of the State to deal with the housing crisis, and specifically, the ‘Built to Rent’ scheme that combines urban planning incentives with tax reliefs to promote residential units on the rental market, “with very significant financial benefits for land development investors”. The second one, concerns the creation of a Special Fund to support the Housing Policy, which provides for the possibility of monetary compensation and purchasing of urban planning incentives.

He also referred to a decision that all applications concerning special housing incentives are examined by a Central Town Planning Authority, the Director of the Department of Town Planning and Housing, to tackle red tape and expedite the licensing of developments that contribute to alleviating the housing problem.

The President also referred, among other things, to 22 measures aimed at simplifying and modernising the procedures for issuing town planning and building permits, noting that these measures have not resolved the problem, “but it is an important first step”. He said that some legislative arrangements should be promoted through the House of Representatives, but that these measures aim at more efficient management of the applications for permits for residential development projects.

President Christodoulides also referred to the "Ippodamos" information system, which he described as a measure that contributes to rapid licensing and to the implementation of urban redevelopment measures, through a bill tabled in parliament in December 2023.

He further underlined the government's intention to continue supporting the land and building development sector with various actions.

(Source: CNA)