Once again, I am attending the Annual General Assembly of the Pancyprian Land and Building Business Development Association, which gives me the opportunity to express my own thanks, and of the Government, for the steady contribution of your Association to the development goals we have set for achieving social, economic and environmental soundness in our country.
Despite the fact that we continue to be confronted both internationally and locally with the remnants of the pandemic and the effects of the war in Ukraine, the ongoing crises at the economic, social, health and political levels, we are nevertheless methodically managing them effectively and the data so far attest to the resilience of our economy.
In this effort, we cannot fail to acknowledge the crucial contribution of the land and construction development sector, with partnerships and activities at the international and local level that strengthen the Government's work and efforts to recover, stabilize the economy and promote sustainable development.
I must admit that maintaining the competitiveness of our country at high levels is not an easy task. However, Cypriot business continues to demonstrate that its quick reflexes to new challenges, its adaptability to new circumstances, its ability to modernise, as well as its ability to rapidly adopt new technological applications, have contributed to the fact that as a country we are presenting excellent examples of business activity in various sectors of the economy.
Ladies and gentlemen,
It is undeniable that conditions prevailing around the world do not allow for complacency, stagnation and inertia. That is why the government continues its efforts to support growth and the construction industry, promoting investment options that encourage the purchase and development of land and the attraction of strategic investments.
I would like to note that for the year 2023, the budget of the Ministry of Interior, which was recently presented to the Finance Committee of the House of Representatives, is enriched with highly developmental elements, and includes allocations of millions for the implementation of housing projects, development projects Two years ago, some people scoffed at us when we announced it. Two years after the implementation of the New Licensing Framework, the numbers of permits granted leave no room for doubting the importance of the project. By October 2022, more than 4500 applications for developments of up to two residential units on a plot/plot under construction were processed, reducing the chronic inconvenience of citizens and professionals, and given this positive development, from 15 September 2022 we extended the scope of the fast-track licensing, covering developments of up to 12 residential units, in apartment buildings of up to 20 apartments and in mixed commercial office and/or residential developments of up to 1000 sqm.In addition, we have expanded e-governance in permitting, which reduces the time and hassle for both citizens and professional planners.
The third reform step in permitting is the bill "On the Facilitation of Strategic Developments Act", which has been tabled, is being debated and is awaiting passage by the House of Representatives. It concerns the implementation of a fast-track licensing procedure for strategic investments, which will make it possible to attract and facilitate the implementation of strategic developments of foreign and local interest that are important for the country. It is expected that soon, without the time-consuming burdens of bureaucracy and delays, strategic developments will contribute decisively to the strengthening of economic activity and the creation of new jobs, significantly enhancing the profile of our country as an ideal investment destination.
And it is for exactly the same reasons that we extended and prolonged the duration of the Urban Incentive Plans package. Specifically, we extended until December 2023 the Planning Incentives Plan for Development Recovery Purposes and the Plan for the Legalization and Permitting of Unauthorized and New Construction in Approved Developments. Both Plans, extended since their utilization has paid off by contributing variously to the recovery of economic activity.
Ladies and Gentlemen,
One of the Government's legacies is the Recovery and Resilience Plan. An important tool to strengthen socio-economic policy for a modern and thriving economy. Through it, significant funds are added to the coffers of the state for various developmental activities. This Plan includes, inter alia, the Sponsorship Scheme for the conversion of buildings into student residences/rooms within the walls of the city of Nicosia and the innovative reform action of implementing the tool of urban rezoning, which is expected to rationalise the management of idle residential land. This action, transformed through the bill entitled the "Urban Development Zones (Urban Redevelopment) and Related Matters Law", is expected to be a breakthrough in the active urbanisation of our country.
Equally important, however, is the modernised revision of both the Local Plans and the Declaration of Rural Policy, which starts on 9 December, through which we are looking forward to the creation of a modern urban - spatial planning of our cities and countryside.
Dear,
Despite the economic circumstances of recent years, investing in real estate in Cyprus remains a safe investment, albeit with reduced returns. In fact, the latest statistics show an increase in the flow of newly filed sales documents of 36% compared to the same period last year and 26% compared to 2019, i.e. before the pandemic. Foreign investment in the third quarter of 2022 shows an astonishing increase of 100%, compared to the same period last year.
These data fill us with optimism for additional targeted actions, projects and interventions in the real estate market. For example, the changes in legislation regarding private and public auctions have already brought positive signs to the real estate market, while another ambitious project has been implemented, that of the General Valuation of Real Estate in values 1.1.2021, which creates, in addition to a uniform basis of values for tax purposes and the strengthening of the institution, for a "properly informed buyer" through conditions of transparency.
Also, just last week we concluded the debate on amendments to the Trapped Buyers Bill, aimed at reducing the system's pathologies and creating a mechanism to safeguard the interests of buyers.
Ladies and Gentlemen,
Despite any grumbling, I must mention that in the area of computerization and e-governance, the TCF has succeeded by 1/11/2022 in reducing the number of pending forced modernization property titles from 45,000 in 2015 to 15,000, and the effort to further simplify the process of issuing property titles continues. This action is even included as an obligation in the Recovery and Resilience Plan.
We are also promoting the amendment of relevant legislation to enable the issuance of unauthorized work certificates in cases of irregularities, the possibility of exploiting the exclusive right of use in jointly owned buildings without the necessary consent of all co-owners, and we are well on the way to solving the problem of non-payment of common charges.
We are also promoting the amendment of relevant legislation to enable the issuance of unauthorized work certificates in cases of irregularities, the possibility of exploiting the exclusive right of use in jointly owned buildings without the necessary consent of all co-owners, and we are well on the way to solving the problem of non-payment of common charges.
Ladies and Gentlemen,
The above policies and reforms of the Government, as well as the redesign of bureaucratic procedures, will be the catalyst and accelerator for more effective response and management of time-consuming procedures and crises.
I am really pleased that at the end of the term of this government we have achieved significant improvements and modernized processes that were a barrier to growth. The Ministry of Interior is providing more modern, improved and higher quality services to citizens in response to the increased demands of civil society.
In conclusion, I would like once again to praise the work of the leadership and members of the Pancyprian Association of Land and Building Development Entrepreneurs, and to assure you that both I personally and our Government recognize your efforts and initiatives, we listen to your concerns and together we aspire to shape an even better environment of comprehensive and coherent government policies and tools that will further assist the land development business sector to continue its dynamic course.
I wish you every success in the work of your General Assembly.
Thank you.
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