It is a great pleasure to be at the 17th Land Development Conference, which has established itself in recent years as a benchmark for the real estate sector. This conference has established itself as a "platform" for the exchange of knowledge, ideas and experiences between distinguished professionals in the sector, encouraging discussion on the challenges and opportunities presented in this area, as well as contact and cooperation between the private and public sectors.
The Ministry of Interior, a multidisciplinary Ministry, with development at the heart of its action, has promoted in recent years significant actions towards the formation of a framework of modern mechanisms to encourage the development of the sector. Modify or even formulate, where necessary, policies that will give even greater support to land development data. By listening to the real needs of the construction industry, but also of society, for commercial and residential housing, we aim for an integrated, coherent development policy framework; and not "in the absence" of the private sector. The contribution of the private sector is vital to us. Its experience, innovative practices and know-how can, through synergies with the public sector, shape the recommendations for more effective and efficient policies and actions.
Ladies and Gentlemen,
The real estate sector, one of the most important pillars of the Cypriot economy, has not been unaffected by the prevailing conditions and events at international level, which have not ceased to take us by surprise: from the pandemic, to Russia's invasion of Ukraine, and the recent financial crisis, which, although being managed, also seems to create uncertainty.
Nevertheless, the data shows that real estate investment in recent years in Cyprus has been on a steady upward trend, which continues into 2023. Cyprus remains an attractive destination for foreign investors and property buyers and this is expected to be further enhanced by the Bill recently approved by the Council of Ministers to facilitate large and strategic developments. This provides for the simplification and acceleration of procedures, over a period of one year. And this is made possible through a regulated planning and building framework for rapid permitting of a development, through a modernized "one stop shop". This policy focuses, on the one hand, on providing a better service to foreign and local investors, free of delays and bureaucratic weaknesses and, on the other hand, on attracting strategic investments in Cyprus, strengthening the profile of Cyprus as an attractive destination for economic activity.
Growth in the real estate investment sector may seem positive for the economy, but in recent years Cyprus has been facing a major challenge in the housing sector. In particular, in some areas, the cost of building a house has reached unprecedented proportions for our country. High construction costs and the difficulty of securing finance have displaced mainly the low-income groups of the population, but also our moderately paid fellow citizens, from the housing market, creating a social rift of instability and inequality.
The Government of Nicos Christodoulides, recognizing these challenges, focuses on the redefinition of housing policy, through a holistic, realistic, but also more social approach that takes into account the specificities of Cypriot society, but also the circumstances of the time. The main parameters of our policy, among others, are. The Single Housing Authority, acting within a holistic approach, will utilize incentives and state land to meet the housing needs of citizens based on their economic and family circumstances.
2) In addition, by engaging the private sector, we aim to increase the housing stock available for rent in areas with increased housing problems. We will consider providing planning and tax incentives for large developments of housing units to be made available for rent for a specific defined period of time.
3) Another aspect of our policy is to provide targeted and attractive incentives by engaging the private sector, thereby expanding permitted developments in selected areas and providing planning incentives to those individuals who include social housing in their developments.
To provide affordable housing to citizens who, due to economic hardship, have been displaced from the housing market, the state aims to activate the real estate sector to create affordable housing for all income groups of the population by enriching planning and other incentives for affordable housing. By increasing the total buildable area of the development, we look forward to creating additional housing units to be made available for social purposes, while encouraging the creation of new options in the construction sector and consequent jobs.
A similar leveraging of attractive incentives, through the activation of the private sector, we are now attempting to achieve with the new IDP Housing Settlement Management Programme. This Programme, for the first time, addresses the problem of the structural adequacy of apartment buildings in a holistic way. We are promoting a challenging project for the State, the implementation of which will be made possible, as I mentioned earlier, through a partnership between the public and private sectors. By utilizing the knowledge and training of a wide range of specialties, such as civil engineers, architects, building contractors and others, we aim at bypassing bureaucratic procedures, to address the problem in a direct, fair and sustainable way.
4) At the same time, ladies and gentlemen, we have the Urban and Spatial Planning of our country that needs to be revised. Through the use of modern urban planning tools, such as urban rezoning, and with a view to the rational and balanced development of our cities and countryside, we are modernising the Local Plans and the Policy Statement. At the same time, we are also promoting a more flexible technocratic evaluation of these plans to make them more efficient. We "correct" urban planning irregularities and take into account the current development, social and environmental needs of Cyprus in a timely and effective manner.
With the revision of the Local Plans of the four major urban centres of Nicosia, Limassol, Larnaca and Paphos, as well as the Rural Policy Statement, we will begin the transition to a new, modernized form, but also with content, which will respond to the current challenges of social needs, economic trends, the energy crisis, but also climate change within and from the European framework.
Dear all,
To mention something that I think would be of interest to your sector, which concerns the activation of an important control tool - particularly in view of the construction of high-rise buildings - by amending the legislation on collective buildings. The amendment should solve the difficult problems of managing and collecting debts from owners. In the case of clusters of buildings on parcels of land, the possibility of exploiting the exclusive right of use of owners without the consent of the other co-owners is also promoted. In conjunction with the preparation of the relevant bill for the management of dangerous buildings, through the introduction of the periodic inspection of buildings, which will soon be submitted for legislative review, we believe that we will contribute to addressing an important and long-standing problematic chapter concerning the safety of our country's building stock.
The implementation of the new framework for local government from June 2024 is also expected to make a positive contribution to improving land development procedures. Through this reform, the role of the planning and building authority in each province will be assigned to a single entity, the Provincial Local Government Agency, which will have the authority to issue planning and building permits throughout the province, thus implementing a unified licensing policy.
Ladies and Gentlemen,
I could go on and on with reference to other plans or policies of the Ministry, such as the actions for the protection of architectural heritage or the programmes for the revitalisation of historic towns and settlements, as well as within the walls of Nicosia. A large Ministry and very limited time. So I would like to conclude by first of all expressing my sincere congratulations to the organisers of the conference and noting that we aim to establish a continuous dialogue between the state and the real estate, land development and construction sector in Cyprus. Together we aim to modernise and formulate mechanisms and actions in the best interest of the country.
Thank you and good luck with the work of your Conference.
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