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Developments in the real estate sector, the new Licensing System and the Government's priorities
Let me first of all congratulate you for your initiative to organize today's meeting, which provides an opportunity for our country's real estate and land development professionals to review and analyze recent trends in the real estate market.
The construction sector is characterized by rapid developments that make up an ever-changing environment. Professionals in the sector and State Services need to be flexible, responsive and adaptable in order to keep pace with change for the benefit of development.
In taking over the governance of the country, the Government of Nicos Christodoulides has set as its main objective the improvement of the service provided to citizens in their dealings with State Services, as well as the encouragement and facilitation of entrepreneurs in the construction sector.
The Government of Nicos Christodoulides has set as its main objective the improvement of the service provided to citizens in their dealings with State Services, as well as the encouragement and facilitation of entrepreneurs in the construction sector. To achieve this to the maximum extent possible, we have promoted solutions that simplify the procedures of development licensing and titling.
It is acknowledged by all that, as they have been until now, the procedures for issuing development permits and title deeds have been lengthy and caused very long delays and slowness to the detriment of development. The delays were the result of two main factors, the significant increase in the number of applications, which created additional pressure on staff, who remained at the same level in terms of numbers despite the increased volume of work they were called upon to handle.
At the same time, a major challenge for us is the forthcoming implementation of the Local Government Reform and in particular the transfer of the responsibility for licensing from the existing Planning Authorities and Municipalities to the five Provincial Authorities that will be established from 1 July. In effect, three different agencies that are currently responsible for issuing planning and building permits are being merged. Therefore, the challenge is initially to smoothly merge the different cultures that exist under a single Authority in order to speed up permitting and improve service to citizens. This is a major change, which in the medium to long term is expected to have multiple benefits for both citizens and construction professionals.
To achieve our goals of reducing delays, simplifying procedures and providing better quality services to citizens, we took specific and targeted actions.
First, we conducted a study (capacity plan), which identified the need to recruit 105 people to strengthen existing staff and speed up licensing. Already 87 people have been recruited and assigned to the existing planning and building authorities, with plans to transfer to the Provincial Authorities as of July 1. The aim of recruiting additional staff is to process a significant number of pending applications before the implementation of the reform, but also to provide them with proper and timely training so that they are able to contribute effectively to the new licensing agencies.
In addition, we have adopted a number of measures to achieve the simplification of the State's urban and land use planning, which will enhance development prospects. At the same time, we expect that, through the establishment of flexible and faster procedures, the long delays observed in many cases in relation to the completion of title procedures will be eliminated, thus reducing unnecessary inconvenience for citizens.
Ladies and Gentlemen,
Since last October and after consultations with the competent advisory body of the State, the Council of State, we have come up with a package of 22 measures, the implementation of which has already begun, with a completion date of July 1 of this year, when the reform of local government will be implemented and the Provincial Local Authorities will be operational.
The purpose of the promoted actions is to modify the existing procedures in such a way that the entire licensing process is reorganised and a more flexible framework is introduced in order to reduce the time needed to process applications. On the basis of a specific timetable set for the gradual implementation of these measures, 11 of the 22 amendments have so far been completed and implemented, while 10 others are at an advanced stage of development and will be implemented in the period remaining until the reform of local government.
For example, since last October, a new practice has been in place that provides for the necessary consultations to be carried out in advance with agencies such as the Fire Service, the AHK, etc., so that applicants can be consulted in advance. Our ultimate goal is the full operation of the Integrated Information System "IPODAMOS", where all requirements will be submitted electronically, further reducing the application processing time.
In addition, as early as January 1, 2024, an external zoning certificate is required to be secured and submitted in advance with the application in order to submit a planning application. This measure was deemed appropriate to facilitate the proper submission of applications to the on-the-ground database, while ensuring that the necessary commitments are processed and no delays are caused in the processing of the planning application. In the same direction is the amendment effective from 1 January 2024 and receipt of applications for planning permission for development of plots only after obtaining a planning permission for land development.
At the same time, having noted unevenness among the various Licensing Authorities, in relation to the implementation of the licensing process, which made the licensing system cumbersome, we are in the process of preparing a single manual, which will introduce common forms, procedures and criteria that should The manual, which is being prepared in cooperation between the services of the Ministry of Interior and the ETEK, is expected to reduce the lengthy bureaucratic procedures that currently exist and cause unnecessary delays in issuing decisions.
At the same time, in cooperation with the ETEK, a training plan has been prepared for both the members of the ETEK and the staff that will staff the EOAs for the responsibility of licensing. The aim is to train and educate them on the proper submission and examination of applications, so that there are no delays in issuing a decision due to incomplete applications
A crowning achievement of the 22 measures being implemented is the abolition of the obligation to obtain planning and building permits for small developments. In the proposed legislation, it is envisaged that the responsibility for the correctness of the completeness of the design will lie with the Architect or Civil Engineer of the project. At the same time, the institution of the Building Inspector is introduced and greater emphasis is placed on on-site inspection of building development and the role of the Architect and Civil Engineer is upgraded. We want to ensure that the Bill serves the purpose for which it is being drafted. Although we are working hard on the drafting of the Bill, it is not expected to be completed before the reform is implemented, and our goal is to have it completed and presented to the House of Representatives as soon as possible within the year.
Ladies and Gentlemen,
As I mentioned earlier, the State's urban and land use planning is being changed to directly serve the citizens and to enhance growth prospects. Along with the changes in the planning licensing process, radical reforms in the process of issuing property titles have been initiated and are being implemented. A series of amendments that have been orbited and/or implemented aim to eliminate the unnecessary inconvenience suffered by citizens in their efforts to be served and ensure a substantial reduction in the overall time required to complete the application and issue titles to an average of three months.
More specifically, from 2 January 2024, the new procedure for issuing property titles was implemented, with the introduction of new practices concerning applications for the division of parcels (horizontal and vertical) for the creation of new titles. A prerequisite now for submitting a partition application is the prior external demarcation and carrying out the spatial survey work, so that all the required documents are submitted in a fully completed application. This allows for faster assessment and ensures that the development will be implemented within the actual boundaries of a parcel.
In addition and to further speed up the process, the institution of a private competent land surveyor has been introduced, giving citizens the flexibility to approach a land surveyor of their choice themselves and proceed with the development work according to their own timetables. This limits the time they expected to wait for the Department of Lands and Surveys to complete their zoning work and frees the Department's staff to focus on other tasks.
Friends,
Last October, the Government unveiled its new comprehensive housing policy. The integrated housing policy aims to gradually increase the housing stock, with a focus on providing affordable housing options to people in need. The new housing policy is people-centred and strengthens the welfare state to offer solutions to socio-economically vulnerable citizens who are unable to meet their housing needs.
Already since December, two of the housing policy actions have been implemented, namely the "Built to Rent" scheme and the revised planning incentives. Through the innovative for our country "Built to Rent" Plan, an additional free building factor of up to 45% of the current one is granted, with an obligation to concession all additional units produced at an affordable rent for a period of at least six years. Combined with tax incentives and reliefs provided in the Plan, a strong incentive is given to land development professionals to boost the market with an additional 800 residential units within the next three years.
In addition, having identified some weaknesses, we have proceeded to review the planning incentives that were previously in place. In order to increase the production and supply of new housing units, an additional building factor of up to 45% of the current rate is granted, with an obligation to sell 25% of the additional units produced for affordable housing purposes at average construction cost, and 20% for the benefit of the owner at open market prices. Alternatively, construction professionals who take advantage of the planning incentives will be able to do so by paying a sum of money, as a buyout, for use for affordable housing production purposes. The buyout will be at a price determined by the Department of Lands and Surveys increased by 50% of the value of the General Building Rate Assessment.
I am pleased to learn that through your organized Associations, land development professionals have attended informational workshops on the Built to Rent Plan and the revised planning incentives. Your interest and suggestions for improving our measures are very important to the successful implementation of the State's housing policy and we have already made some improvements based on your suggestions.
Friends,
Particularly in view of the implementation of the Local Government Reform and the transfer of development licensing to the Provincial Self-Government Organizations, our priority is to formulate the appropriate conditions so that the new Local Government environment is effective for the benefit of both citizens and development, as well as the local economy. That is why we have strengthened the planning and building authorities with additional staff, as I mentioned above, which, together with the changes we are implementing, will contribute to a smooth transition and adjustment.
Our priority is also to fully implement the housing policy and offer definitive housing solutions to our fellow citizens with greater difficulty in meeting their housing needs. We believe that the Plans and measures we are proposing constitute an attractive package for professionals employed in the wider construction sector and can be beneficial to their business activities.
The Government of Nicos Christodoulides is committed to improving the quality of services and removing labyrinthine bureaucratic procedures that make Services cumbersome and inconvenience citizens. The changes we have initiated resolve chronic problems, modernizing procedures and facilitating not only the service of citizens, but also the cooperation of land development professionals with government services.
We see the construction sector as the engine for growth in our country, with a significant contribution to the country's economy and entrepreneurship. For this reason, we invest in our cooperation with all organized bodies in the construction sector and its further strengthening. I assure you of our political will to intervene and diversify established procedures and practices in order to safeguard the interests of citizens and professionals.
Thank you very much for your attention.
(MQ)
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