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It is with great pleasure that I participate in tonight's event on the occasion of the 40th anniversary of the establishment of the Pancyprian Association of Land and Building Development Entrepreneurs. Through the admittedly successful course of four decades, your Association has only achievements and commitment to goals that with strategy and planning always lead to success. In particular, the extroversion of your actions, through your multi-level activities and the development of major 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 enhancing the development 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. And it is for this reason that at the end of May, together with OEB and KEBE, we will meet at the Presidential Palace, in the presence of all the relevant Ministers, to present some of the actions we are working on to help specific sectors of the economy. One of these sectors is the construction sector, in order to help Cypriot entrepreneurs.
The construction industry and land development, as a key pillar of the Cypriot economy, has been characterized in recent years by strong dynamics, despite the various challenges and the sector's particular sensitivity to exogenous changes and external pressures. The prolonged crises of recent years - financial, health, geopolitical, energy - have undoubtedly created new realities, but we must acknowledge, to your credit first and foremost, but also because of the quick reflexes of both the previous and the current government, that the real estate and land development sector is distinguished for its high resilience and adaptability in an ever-changing environment, and remains to date 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, has promoted a set of policy actions aimed at improving the economic environment in our country, thus looking forward to promoting sustainable development, supporting entrepreneurship, creating quality jobs and, by extension, being able to achieve the great goal, which is the well-being of citizens. In this context, we are setting specific strategies and objectives that we are committed to implementing.
From the first day of assuming the government of the country, one of our top priorities has been to address the major challenge of ensuring decent and adequate housing, with particular emphasis and sensitivity to meeting the housing needs of the younger 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 the seriousness with which we approach the issue. The integrated housing policy has been translated into action and is now a fact, involving targeted actions, both immediate and medium-term, to increase the mainly affordable housing stock, new or existing vacant stock, and then make it available to the housing market.
We cannot achieve this goal alone as the executive. Your instrumental contribution to this effort, the private land and building development sector's contribution to its successful implementation, remains unquestionable.
In this context, and looking forward to the cooperation of the public and private sectors, 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 an additional building factor, depending on the planning and needs of each investor, in return for offering housing units at an affordable price, for sale or for rent.
Allow me to focus in particular on two very important new housing policy actions that are essentially an invitation to the private sector to participate in the production of affordable housing. The first is the announcement of the Built to Rent Scheme, a pioneering scheme by Cypriot standards, which combines urban planning incentives with tax relief for promoting residential units in the rental market, with very significant economic benefits for land developers. The second concerns the creation of a Special Housing Policy Support Fund which provides for the possibility to pay a cash compensation and buy-out of planning incentives.
In addition to housing policy, in an effort to address a huge scourge that we face over time as a state, bureaucracy, and to expedite the permitting of developments that help mitigate the housing issue, we have decided that all applications relating to special housing incentives will be reviewed by a Central Planning Authority, the Director of the Department of Planning and Zoning.
In addition to what I have mentioned above, recognizing the wide and widespread acceptance and utilization of the Urban Incentive Scheme for Business Recovery, pioneered by the previous administration, we proceeded last January to extend the implementation of the Scheme until the end of this year. Having assessed the positive and very beneficial, I would say, benefits of the Plan for our local economy, we also proceeded with the update of the Plan to ensure that the beneficial effects continue in the areas of land development, tourism and industry. And I am delighted by the results of which the Plan is benefiting.
In the same direction, we have decided and are implementing 22 measures to simplify and modernize the procedures for issuing 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 pieces of legislation that will have to be pushed through the House of Representatives, but these measures are aimed at more efficient management of applications for the licensing of residential development projects, in the first instance on a small scale, in cooperation with private planners, who are now substantially involved in the promotion of such developments.
This effort, namely the reform and simplification of licensing procedures, as you are well aware, is necessary to promote development because timely licensing enhances the activity of the construction sector and the building industry in our country. At the same time, the simplification of licensing mechanisms is an essential factor, and it is something that we need to see, for the successful implementation of the forthcoming Local Government Reform and the operation of the new Provincial Authorities from 1 July 2024. It is a bet we must win, it is a proper reform. For the major reforms, of course, challenges will arise in the first phase, but we are here to address them particularly on the issue of licensing and that is why we have decided that major licensing will remain at the central level, at the Director of the Department of Planning and Zoning, so as not to create further delays.
In the same context, facilitating the licensing of strategic development projects is another objective of the Government, which is being implemented through the implementation of the relevant law on the Implementation of the Law on Strategic Development. With the recent submission of the relevant Regulations to the House of Representatives, in the relevant Committee, the procedures for the full implementation of the law, which will be of crucial importance, are also being initiated.
An important reform step for the strategic investment sector is also the launch of the electronic application for strategic development projects through the "Hippodamus" information system, a measure that contributes to speedy licensing. The adoption of the electronic application is interwoven with the Government's broader effort to modernise the state and reduce bureaucracy, thus creating a friendly investment environment and at the same time enhancing the competitiveness of our country, so that it becomes an even more attractive business destination. Urban rezoning promotes the model of compact and sustainable land development and helps to limit scattered development, phenomena that we have seen in the past. In collaboration with the House of Representatives, it is expected that within 2024, legislation will be passed that will make a substantial positive contribution to real estate development, with significant benefits for both landowners and land developers.
As I have repeatedly mentioned, the construction sector and the building industry play a key role in the success of the overall goals of all governments over time, but I am speaking specifically about our own administration and the goals we have set to promote sustainable redevelopment.
As I have repeatedly mentioned, the construction sector and the building industry play a key role in the success of the overall goals of all governments over time, but I am speaking specifically about our own administration and the goals we have set to promote sustainable redevelopment. In this context, developing synergies between the public and private sectors is a key priority for us, with the ultimate goal of achieving balanced development, always with a focus on people. Moreover, I would like to acknowledge that the practical contribution of the land and building development sector over the years to society as a whole has produced tangible results. And it is on these foundations that I want to continue to build our sincere relationship and cooperation between us.
In conclusion, I want to assure you that we continue unhindered, with zeal and dedication in designing policies and actions, always listening to your suggestions, you clearly know better than we do, in order to improve the daily lives of citizens, for ourselves and our children, while at the same time ensuring social cohesion in our country.
In conclusion, I want to assure you that we continue unhindered, with zeal and focus in designing policies and actions, always listening to your suggestions, you clearly know better than we do, with the aim of improving the daily lives of citizens, for ourselves and our children, while at the same time ensuring social cohesion in our country.
My presence at tonight's event together with the Ministers of Finance, Foreign Affairs and Transport - the Minister of Interior would have been here, but for reasons beyond his capabilities he is not with us tonight - is a clear indication that as a Government we are with you, we will continue to support the actions of the land and building development sector to achieve our common goals.
(PM/EP)
Contents of this article including associated images are owned by PIO
Views & opinions expressed are those of the author and/or PIO
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