The assurance that the Government continues to support the construction industry by promoting and encouraging the purchase and development of land as well as the attraction of investments was given by the Minister of the Interior Nikos Nouris.
In his speech at the Annual General Meeting of the Pancypriot Association of Land and Building Development Businesses, Mr. Nouris said that the Government continues its efforts to support development and the construction industry, promoting investment options that encourage the purchase and development of land as well as the attraction of strategic investments.
< p>Noting that for the year 2023, the budget of the Ministry of the Interior is enriched with highly developmental elements, and includes funds of millions for the implementation of housing projects, development projects and other strategic pursuits with the aim of improving economic activity, he said that one of the biggest reform achievements are the introduction of rapid urban planning and building permits.
Mr. Nouris said that two years after the implementation of the New Licensing Framework, the numbers of licenses granted leave no room for doubting the importance of the project. Quoting figures, he said that by October 2022, more than 4500 applications for developments of up to two residential units on a plot/plot under construction have been processed, reducing the chronic inconvenience of citizens and professionals.
He added that given this positive development, as of September 15, 2022, the scope of application of fast-track licensing was extended, covering developments of up to 12 residences, in apartment buildings of up to 20 apartments, but also in mixed commercial office or residential developments of up to 1000 sq.m. Additionally, e-governance has been extended to licensing, which reduces the time and hassle of both citizens and professional surveyors.
The Minister then referred to the third reforming step in licensing, the bill “On the Facilitation of Strategic Developments Law”, which has been tabled and is being discussed and is expected to be passed by the House of Representatives.
As he said , this concerns the implementation of a rapid licensing process for strategic investments, which will make it possible to attract and facilitate the implementation of important strategic developments for the country, of foreign and local interest.
“It is expected that soon, without the time-consuming burdens of bureaucracy and delays, the strategic developments will contribute decisively to the strengthening of economic activity and the creation of new jobs, significantly strengthening the profile of our country as an ideal investment destination,” he said.< /p>
Mr. Nouris continued by saying that it was for the same reasons that the period of validity of the Urban Incentive Plans package was extended and extended. More specifically, the Planning Incentives Plan for Development Activity Recovery and the Plan for the Legalization and Licensing of Unauthorized and New Constructions in Approved Developments were extended until December 2023.
He said that one of the Government's legacy is the Recovery and Resilience Plan, through which significant funds are added to the state coffers for various development actions. This Plan includes, among others, the Grants Plan for the conversion of buildings into student dormitories/rooms within the walls of the city of Nicosia and the innovative reforming action of the application of the urban revitalization tool, which is expected to rationalize the management of idle residential land.
This action, which is transformed through the bill entitled “Urban Development Zones (Urban Revitalization) and Related Matters Law”, is expected to be a cut in the active urban planning of the place, he said and added that equally the modernized review of both the Local Plans and the Countryside Policy Statement, which starts on December 9, is also important.
Mr. Nouris then stated that despite the economic circumstances of recent years, investing in real estate in Cyprus remains a safe investment, even with reduced returns. He noted that the latest statistics show an increase in the flow of newly filed sales documents of 36% compared to the corresponding period last year and 26% compared to 2019, i.e. before the pandemic. Foreign investments in the third quarter of 2022 show a surprising increase of 100%, compared to the corresponding period last year.
The Minister noted that despite any misgivings, in the field of computerization and electronics governance, the TKH has succeeded until 1/11/2022 in reducing the number of pending property title deeds for forced modernization, from 45,000 in 2015 to 15,000, and the effort to further simplify the process of issuing property titles continues.
The President of the Association of Land and Building Development Entrepreneurs Michalis Hatzipanagiotou in his speech referred to the challenges faced by the sector and the Cypriot economy as a whole as a consequence of the war and persistent inflation.
“The sector contributes more than 3 billion euros in the country's GDP and employs more than 35 thousand workers. These figures reflect their importance as one of the main development pillars for the country,” he said.
Mr. Hatzipanagiotou particularly referred to the need for administrative reforms and the extroversion of businesses, as crucial elements for the formation of a favorable environment for the coming years.
“I am confident that our country will stand tall in this international environment of economic instability. What is needed to achieve this is the cooperation of the parties involved, businesses, banks and the state, in order to make the necessary changes that will make us more competitive against foreign markets,” he said.
“Our collective goal it should be the attraction of foreign investors in different sectors of the economy and through them the achievement of high growth rates, the results of which will benefit all Cypriots”, he added.
Mr Hatzipanagiotou placed particular emphasis on importance of promoting sustainable development, highlighting the role that financial institutions play in this process.
The President of OEB Antonis Antoniou, in his own greeting, said that the Federation is well aware of the enormous importance that the land and building development sector plays for the development and well-being of the economy, noting that with a contribution that reaches approximately 17% of the domestic gross of added value and employing thirty-five thousand workers, has always been a key pillar of the Cypriot economy.
Mr. Antoniou then said that despite the difficult economic climate globally, the Cypriot economy continues to positively surprise, confirming once again its potential and resilience.
The President of OEB, among but he said that as far as foreign investments are concerned, it is imperative that the efforts to attract fresh capital continue unhindered. Cyprus, he said, has a lot to offer foreign investors and the role of the land development sector remains as important as in previous years.
Mr. Antoniou stated that the new Strategy for Attracting Investments, which was put into effect at the beginning of the year, was strengthened by two bills last July regarding the expansion of the scope of the tax deduction for the activation or expansion of the activities of foreign companies in the Republic. The whole effort, he said, has already started to bear fruit thanks to your own persistence and effort.
He noted that the land and building development sector has been the pillar of the Cypriot economy several times in the past. He pointed out that in difficult times for the country where unemployment reached record levels, Cyprus had turned to the construction sector.
“Through the developments that took place, jobs were created, new investments arrived and the recovery of the economy was helped. . The business world does not forget the timeless contribution of the Association and the Land and Building Development sector in general. On the contrary, he greatly appreciates his contribution and expects even more in the future, he said.
