PtD assured of government support in the field of land and building development – “Main pillar of the economy” – What he said at an event for the 40th anniversary of the establishment of the Pancypriot Association of Land and Building Development Entrepreneurs
He assured that both he and the members of the Government stand by and will continue to support the actions of the land and building development sector, to achieve the common goals the President of Democracy.
Speaking at an event for the 40th anniversary of the establishment of the Pan-Cypriot Association of Land and Building Development Entrepreneurs in Limassol, the President Christodoulidishe referred to the association's 40-year history saying that the work it performs is a key pillar of the Cypriot Economy.
The President stated that at the end of May, together with OEB and KEBE will be at the Presidential Palace, in the presence of all the relevant Ministers to present some of the actions they are working on to help specific sectors.
“The construction industry and land development, as < strong>main pillar of the Cypriot economy, has been characterized in recent years by strong dynamics, despite the various challenges and the particularly sensitive nature of its sector to exogenous changes and exogenous pressures,” he said, among other things.
He stressed that “the protracted crises of recent years – financial, health, geopolitical, energy – they have undoubtedly created new data, but we have to recognize, to your credit first, but also because of the quick reflexes of both the previous and current Governments, that the real estate and land development sector is distinguished for its high resilience and adaptability, in a constantly changing environment, and remains to this day and will continue to be the driving force of Cypriot business”.
Such is his greeting:< /p>
“It is with great pleasure that I participate in tonight's event on the occasion of the 40th anniversary of the establishment of the Pancypriot Association of Land and Building Development Entrepreneurs. Through the admittedly successful course of four decades, your Association has only achievements and commitment to goals to show that, with strategy and planning, always lead to success. In particular, the extroversion of your actions, through your multi-level activity and the development of large projects, has proven to be of vital importance for the economy of our country and the general effort to attract new and important investments, thus strengthening, and the development of of domestic entrepreneurship and highlighting Cyprus as an investment destination, in the European and international arena.
Precisely because we recognize over time the very important work you do, you are a key pillar of the Cypriot economy, something that particularly concerns us, the relevant Ministers are also here, it is the fact that as a state we must clearly do more for all of you, for Cypriot businessmen , because through your own actions and successes in the long term the state has a lot to gain. And it is for this reason that at the end of May, together with the OEB and the KEBE, we will meet at the Presidential Palace, in the presence of all the competent Ministers, to present some of the actions we are working on to help specific sectors of the economy and one of the reasons the sectors are also construction in order to help Cypriot entrepreneurs.
The construction industry and land development, as a key pillar of the Cypriot economy, has been characterized by strong dynamics in recent years, despite the various challenges and the particularly sensitive sector to exogenous changes and exogenous pressures. The protracted crises of recent years – financial, health, geopolitical, energy – they have undoubtedly created new data, but we have to recognize, to your credit first, but also because of the quick reflexes of both the previous and current Governments, that the real estate and land development sector is distinguished for its high resilience and adaptability, in a constantly changing environment, and remains to this day and will continue to be the driving force of Cypriot business.
The Government, recognizing the challenges, but also the importance of your sector in the economic sector, promoted a network of political actions aimed at improving the economic environment in our country, looking forward in this way to promoting sustainable development, supporting the entrepreneurship, in the creation of quality jobs and, by extension, to be able to achieve the great goal of the well-being of the citizens. Within this framework, we set specific strategies and goals that we diligently implement.
From the first day of assuming the governance of the country, one of our highest priorities has been to address the great challenge of ensuring decent and adequate housing, with particular emphasis and sensitivity to meeting the housing needs of the new generation. And especially in Limassol it is one of the biggest problems and challenges we have to face.
The announcement of the first comprehensive single housing policy, in October 2023, demonstrates the great importance and seriousness with which we approach the issue. The integrated housing policy was transformed into practice and is now a fact, including targeted actions, immediate and medium-term, with the aim of increasing the affordable mainly residential stock, new or existing idle, and its subsequent disposal in the housing market.
< p>We cannot alone as an executive power achieve this goal. Your own decisive contribution to this effort, of the private sector of land and building development in the successful implementation of the project, remains indisputable.
Within this context, and looking forward to the cooperation of the public with the private sector and listening to your concerns, and approaching you as partners and fellow travelers, we have formulated an attractive framework of urban planning incentives that provides alternative options for utilizing additional building factor, depending on the planning and needs of each investor, in exchange for offering residential units at an affordable price, for sale or for rent.
Allow me to focus in particular on two very important new housing policy actions which are essentially an invitation to the private sector to participate in the production of affordable housing. The first concerns the announcement of the Built to Rent Plan, a pioneering Plan for Cypriot data, which 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 concerns the creation of a Special Fund to support the Housing Policy, which provides for the possibility of paying monetary compensation and purchasing the urban planning Incentives.
In addition to the housing policy, in the effort to deal with a huge scourge that we face over time as a state, that of bureaucracy and to speed up the licensing of developments that contribute to alleviating the housing issue, we decided that all applications concerning special housing incentives are examined by a Central Urban Planning Authority – the Director of the Department of Urban Planning and Housing.
In addition to what I have mentioned above, recognizing the great and wide acceptance and utilization of the Urban Incentives Plan for the recovery of business activity, which was first presented by the previous administration, we proceeded last January to extend the implementation of the Plan, until the end of the current year. After evaluating the positive and very beneficial – i would say – benefits of the Plan for the economy of our country, we also proceeded with the updating of the Plan, so that the beneficial results in the areas of land development, tourism and industry continue. And I am happy with the results, with the use that the Plan is getting.
In the same direction, we have decided and are implementing 22 measures to simplify and modernize the procedures for issuing town planning and building permits. I am well aware that these measures have not solved the problem, but they are an important first step. There are some legislative arrangements that should be promoted through the House of Representatives, but these measures aim at more efficient management of the applications for permits for residential development projects, in the first phase of small scope, in cooperation with the private architects, who are now actually participating in the promoting such developments. And I thank the President of ETEK for the cooperation in this matter.
This effort, namely the reform and simplification of the licensing procedures, as you know very well, is necessary to promote development, because with timely licensing the activity of the construction sector and the building industry in our country is strengthened. At the same time, the simplification of licensing mechanisms is an essential factor, and something we should see, for the successful implementation of the upcoming Local Government reform and the operation of the new District Self-Government Organizations, from 1 July 2024. It is a bet we have to win, is a proper reform. For the major reforms, of course, there will be challenges in the first phase, but we are here to deal with them, especially in the issue of licensing, and that is why we have decided that major licensing should remain at a central level, with the Director of the Department of Urban Planning and Housing, so that further delays are created.
Within the same context, the facilitation of the licensing of strategic development projects is another goal of the Government, which is implemented through the implementation of the relevant law on the Facilitation of Strategic Development Projects. With the recent filing of the relevant Regulations in the House of Representatives, in the competent Committee, the procedures for the full implementation of the law, which will be of decisive importance, are also set in motion.
An important reforming step for the field of strategic investments is also the launch of the electronic application for strategic development projects, through the “Ippodamos” information system, a measure that contributes to rapid licensing. The adoption of the electronic application is intertwined with the Government's wider effort to modernize the state and reduce bureaucracy, thus creating a friendly investment environment, while at the same time strengthening the competitiveness of our country, so that it becomes even more attractive business destination.
Further and in the direction of the timely activation and development of residential areas in our country, the implementation of urban redevelopment measures will also contribute, through the relevant bill submitted to the House of Representatives in December 2023. Urban redevelopment promotes the model of compact and sustainable land development and contributes to limiting scattered development, phenomena we have seen in the past. In cooperation with the House of Representatives, a law is expected to be passed within 2024 that will have a substantial positive contribution to the development of real estate, with significant benefits for both land owners and land development companies.
As I have repeatedly stated, the construction sector and the building industry play a key role in the success of the general objectives of all Governments over time, but I am talking specifically about our own governance and the goals we have set ourselves to promote sustainable development. Within this context, the development of synergies between the public and private sectors is our main priority, with the ultimate goal of achieving balanced development, always centered on people. Besides, I want to acknowledge it, and the practical contribution of the land and building development sector, over time, to society as a whole has brought tangible results. And on these foundations I want us to continue to build our honest relationship and cooperation.
In closing, I want to assure you that we continue unhindered, with zeal and determination in the planning of policies and actions, always listening to yours proposals, you clearly know better than us, with the aim of improving the daily lives of citizens, for us and our children, ensuring at the same time social cohesion in our country.
My presence at tonight's event, together with the Ministers of Finance, Foreign Affairs and Transport – the Home Secretary would also be here, but for reasons beyond his ability he is not with us tonight – is a clear indication that, as a Government, we are by your side, we will continue to support the actions of the land and building development sector, to achieve our common goals.”
