Radical policies set to boost land development and construction sector

Focusing on reforms in the land development and construction sector and the prospects for a more sustainable and efficient future, a dialogue was held between the Minister of the Interior, Constantinos Ioannou, and young entrepreneurs during the 15th Nicosia Economic Congress.

The Minister emphasised the government’s determination to offer solutions by implementing both small and large-scale changes in licensing and urban planning procedures.

He specifically highlighted timely approvals for staff recruitment and the simplification of procedures, with the implementation of 22 targeted measures aimed at easing the workload of district authorities.

He also referred to the operation of the Business Facilitation Unit since March, which functions as a one-stop-shop with a customer-oriented approach.

Ioannou further mentioned the advancement of housing policy through urban planning incentives and the positive impact of the Build to Rent scheme. He underlined the importance of new legislative initiatives, such as the law on co-owned infrastructure and the utilisation of landlocked properties, aimed at enabling more direct contact between citizens and the relevant authorities.

Despina Chrysochou, Platon Eliadis, and Michalis P. Leptos highlight progress and challenges

Despina Chrysochou, Executive Director of Cyfield Group, welcomed the swift permit approvals achieved through the IPPODAMOS system and praised the success of the Cyprus Land Development Corporation’s (KOAG) affordable housing scheme, which launched in January.

She also pointed to labour shortages and called for a review of language requirements for professionals such as drivers. Additionally, she proposed digitising administrative procedures, revitalising city centres by increasing residential development in central areas, and making changes to building regulations.

Platon Eliadis, Special Projects Manager at Lanitis Group (Cybarco Development), described the government's policies as targeted and moving in the right direction, particularly regarding the fast-track process.

However, he also raised concerns about the growing inability of locals to purchase homes due to rising prices, mainly driven by demand from foreign investors. Reflecting on the Minister’s earlier statements, he remarked that the government’s measures seem to be creating a win-win situation for both the state and the private sector.

Micheal Leptos, part of the Executive Management of Leptos Group, agreed on the effectiveness of the reforms. He emphasised that the green transition measures planned through 2035 will be helpful, but at the same time, there are still disincentives that hinder the realisation of large-scale projects.

“The market is not predictable; everything changes daily,” he noted, commenting on the impact of ongoing global developments.

Melina Rafti welcomes reforms but points to remaining bottlenecks in licensing process

Melina Rafti, General Manager of Korantina Homes, also welcomed the government’s reforms, while offering constructive feedback that delays in issuing permits continue to undermine the sector’s competitiveness.

She suggested transferring the management of older permit applications to the private sector and removing the so-called “2026 issue” from the agenda. Although she acknowledged that the approval process has improved to a timeframe of 60–80 days, she emphasised the need to strengthen other essential services, such as the Fire Department and the Cyprus Electricity Authority (EAC), as they directly impact licensing progress.

In his closing remarks, Minister Ioannou highlighted that the number of licensing authorities has been reduced from 46 to just 5—an initiative aimed at increasing efficiency and streamlining procedures.

Regarding application volumes, he clarified that the responsibility lies with each relevant local authority, which must actively report on their efforts to boost staffing levels.

Summarising, the Minister conveyed the government’s strong commitment to simplifying procedures and facilitating both citizens and businesses through practical, results-oriented actions.