Constantinos Ioannou highlights new incentives for real estate entrepreneurs and investors

"The government is moving forward with targeted policies to strengthen the land development sector, through reforms that simplify procedures and introduce new incentives for entrepreneurs and investors," Interior Minister Constantinos Ioannou has highlighted.

The Minister delivered a speech entitled ‘Government Policy: Shaping the Future of the Real Estate Sector in Cyprus,’ during the 19th Property Development & Construction Conference and Exhibition presented by Exness, and analysed the reforms underway to revitalise the real estate market and address the housing problem.

Among its key points giving a boost to foreign businesses, the new Special Plan for mixed developments in commercial zones will offer an additional building factor, facilitating the creation of housing for business personnel. The new bill will also contribute to containing rental prices in the market.

In the context of his presentation, Ioannou underlined the importance of reform in the licensing sector, noting that the process of examining and issuing urban planning and building permits is being modernised and automated.

More specifically, the fast-track process concerns low-risk developments of up to two residences, with a completion time of 40 working days, and medium-risk developments of up to 12 terraced residences or four-story apartment buildings of up to 20 apartments, with a basement, which will be issued in 80 working days.

This change, according to the Minister, reduces delays, relieves the burden on District Local Government Organisations and offers more immediate solutions to the housing problem, re-introducing residential units to the market.

Regarding urban planning incentives, Ioannou referred to the ‘Build to Rent’ Scheme, which encourages the creation of rental housing through incentives for land developers. It is estimated that approximately 1,900 new housing units will be created in the next three years, with over 280 of them being allocated for affordable housing. At the same time, over €8.7 million will be channeled to the Cyprus Land Development Corporation’s Special Affordable Housing Fund to support housing programs.

Another important measure announced by the Minister is the further reduction of the minimum area of ​​all types of apartments by between 10% and 15%, as well as the abolition of the obligation to adhere to specific percentages per type of apartment in tourist zones.

Furthermore, the new Special Plan for mixed developments in commercial zones offers an additional building factor, facilitating the creation of housing for business personnel.

With these measures, the government aims to increase the housing stock and strengthen the purchasing power of citizens.

Ioannou emphasised that this strategy aims not only to meet the growing demand for housing, but also to shape a more sustainable and competitive land development sector, which will attract investment and strengthen the country's economy.

(Source: InBusinessNews)