The Government is moving ahead with significant reforms aimed at modernising and simplifying procedures, as well as putting in place the right incentives that will boost competitiveness and respond to the needs of the times, President Nikos Christodoulides said addressing the Annual General Meeting of the Cyprus Property Developers Association.
He also announced that “in the very next period we will have important announcements… Intergovernmental agreements with three countries: with an EU member state, with a Gulf state, and with an Asian state, which will further strengthen foreign investment in our country, where there is strong interest.”
Housing: 500 affordable homes on state land in Nicosia, Limassol, Larnaca, and Paphos
On housing, the President said that it “has been our top priority since the first day we assumed governance. And we have proven it in practice. We have already announced a series of measures within the framework of a comprehensive housing policy, with emphasis on affordable housing for our young people, and I am pleased to see your strong interest in making use of the housing schemes we are already implementing. It is especially important for us that, in this major effort to ease the housing problem, we have as partners and fellow travellers all of you, the professionals of the sector. From the outset, your contribution has been decisive in shaping, improving, and effectively implementing the measures, and I would like today to take the opportunity to thank you publicly as well.
Your interest in the Town Planning Incentives Scheme is particularly high and is expected to deliver more than 1,500 housing units, of which around 250 will be made available at affordable purchase or rental prices. With the increase in the supply of quality, high-specification housing, we are confident that many of our fellow citizens will be able to meet their housing needs, gradually addressing a social problem that concerns all member states of the European Union.
And it is precisely in this context that today we announced two more emblematic policies of our Government to alleviate the housing problem:
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The construction of approximately 500 affordable homes on state land in Nicosia, Limassol, Larnaca, and Paphos, which will be allocated to families and/or single individuals at affordable rent. The cost is expected to reach €70 million, in addition to the value of the land estimated at €7 million. This is a decision that proves in practice our determination and will to tackle the housing challenge. The state plots will be offered through a competitive tender to the private sector for construction using the Design and Build method, while ownership will remain with the state.
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At the same time, responding to a long-standing request of yours, we announced today the construction of Collective Accommodation units for workers in sectors with heightened need. This is a decision that will further relieve the increased demand for housing for employees and will also help reduce rental prices.
Regarding housing, I would also note that it is one of the issues that will hold an important place on the agenda of Cyprus’ Presidency of the Council of the European Union, which we assume in three weeks, and we will work towards adopting specific actions at European level.”
In the same context he added that, “despite the fact that housing issues are a national competence, it is positive that the European Union, also following our intervention, is moving at a collective level to address this challenge.
I also note that for the first time the issue of housing was discussed at European Council level last October, and it is extremely important that, I repeat, following our intervention and with a recent EU decision, existing funds from the Cohesion Fund can be used for housing purposes.
As you know, in the coming days, on 16 December, we also expect the President of the European Commission to publicly present the European Affordable Housing Plan, which we will of course make use of as the Republic of Cyprus.”
Business Service Centre
“With the aim of better service and the creation of a modern investment environment, a few months ago we launched the upgraded Business Service Centre, bringing the competent services together under a single body. By appointing a Project Manager for Strategic Developments, we offer targeted guidance, less bureaucracy, and faster procedures. I am pleased to learn that, through OEB, you are already participating in briefing meetings so that you can make full use of the Centre’s services and pass this experience on to your network of partners, because the decision to upgrade the Centre was made to address long-standing distortions and there is an opportunity you must seize,” he stressed.
“Implementing an integrated plan, we proceeded with speeding up licensing procedures, eliminating unnecessary bureaucratic obstacles and significantly reducing delays. At the same time, the digitisation of applications and their electronic examination have contributed to a drastic shortening of timeframes and to limiting unjustified delays.
Indicatively, I note that applications for low-risk developments are now examined within 40 working days, while medium-risk developments within 80 working days. And I am truly glad because the new licensing method has been applied successfully over the last year, with significant results: more than 1,400 applications for single and semi-detached houses have already been examined within the set timeframe, as well as over 260 applications for apartment buildings of up to 20 units,” he added.
Tax reform and public procurement
“At the same time, tax reform is in its final stages and its adoption by the House of Representatives is expected before the end of the year. The new, fairer and more flexible tax framework will undoubtedly further strengthen Cypriot businesses, and this was something we highlighted as a necessity from the first moment.
Moving in the same direction is the revision of public procurement legislation. We must proceed with further changes. Our objective is to shape a strong and reliable public procurement system that will enhance transparency and healthy competition, reduce delays, allow better planning and oversight, and ensure the quality and sustainability of development projects,” he concluded.
