Minister backs private sector role in land reform

Interior Minister Constantinos Ioannou on Tuesday said that the government is moving ahead with a series of draft laws which aim to improve land development and construction processes in Cyprus.

Ioannou’s comments were delivered during during a roundtable discussion with real estate entrepreneurs at the 15th Nicosia Economic Congress.

Specifically, the minister highlighted several key initiatives, including proposals to simplify permit fees, a new bill concerning jointly-owned buildings, and legislation on urban land redistribution.

“Our goal is to facilitate the daily lives of both citizens and businesses in their interaction with the state’s services,” Ioannou said.

He added that “our vision is a sustainable and resilient land development and construction sector,” adding that the objective is to ensure the industry continues its upward trajectory.

Moreover, Ioannou reaffirmed the government’s political will to modernise public administration.

“We want to improve the services we offer, provide solutions, and ease day-to-day life,” he said.

He also noted that “whenever problems arise, reforms are pursued within the land development framework”.

In this context, he pointed out that considerable progress has been made over the last two years.

Regarding permit procedures, the minister acknowledged anticipated difficulties stemming from the local government reform.

Measures taken so far include a 24 per cent increase in personnel assigned to district self-governance organisations (EOAs), the approval of over 300 additional staff positions, and more than double the number of employees now working on licensing compared to before.

He also mentioned that twenty-two simplification measures have been introduced since October 2022, resulting in more uniform procedures to help local authorities handle their duties effectively.

“The most significant reform”, Ioannou said, “is the fast-track licensing process launched on October 1.”

This system transfers responsibility to private sector planners and significantly reduces approval timelines.

So far, 756 residential building permits and 56 for apartment complexes have been submitted under this scheme.

“We are evaluating the simplification of building permit fees, aiming to reduce the burden on both the EOAs and planners,” he said.

A proposal is expected to be submitted for public consultation by May, with Cabinet approval anticipated in June of this year.

Ioannou also referenced the business facilitation unit, which functions as a one-stop shop for enterprises.

He added that “for strategic developments, a dedicated project manager is appointed to liaise with government departments”.

Further legislative changes are in the works, including the bill on jointly-owned buildings currently undergoing legal review.

“This will make apartment investment more attractive,” he said.

In addition, the urban redistribution bill, already before the House, is expected to “make it easier to utilise landlocked properties”.

“We believe in partnering with the private sector,” Ioannou said.

“We’ve established a framework for collaboration with all organised entities in the land development and construction sector,” he added.

He explained that “by listening to their concerns, the government can offer effective solutions”.

However, he acknowledged that significant challenges remain, including the need to revise local development plans and make drastic reforms to the land registry.

“The government will continue with reforms to make life easier for the general public and entrepreneurs in their interactions with the state,” he stated.

Feedback from real estate sector stakeholders

Platon Eliades, from the Lanitis Group (Cybarco), said the government’s reforms are moving in the right direction.

He cited delays in permit approvals due to local government reform and expressed hope that the new measures would ease the strain on the system.

He also pointed out the difficulty many people face in purchasing a home due to rising prices, while acknowledging the government’s efforts to provide solutions through housing schemes.

Michael Leptos, of the Leptos Group, said that purchasing power is directly tied to wages.

He noted an increase in residential permits recently but said data for large-scale projects remains discouraging.

Leptos underlined the importance of long-term stability at a time when rules seem to change daily and stressed the need for closer cooperation between businesses and the government on infrastructure projects.

Melina Rafti of Korantina Homes described outdated permit applications as a “cancer,” particularly those submitted in 2021 and October 2023 before VAT changes on primary residences.

She proposed transferring these older applications to the private sector to ease the load on local authorities.

Ioannou responded that the decision rests with each EOA within the context of their financial and administrative autonomy.

Rafti also stressed the need for parallel infrastructure development to attract real estate investment, citing marinas and cultural events as examples.

Despina Chrysosthou of Cyfield highlighted the importance of fast-track licensing and said titling procedures must also be streamlined.

She praised the Cyprus Land Development Corporation’s affordable housing programme, calling it “the most successful one so far”.

She also pointed out that workforce shortages are a major challenge for the economy and welcomed the Labour Ministry’s programme to licence third-country nationals.

However, she called for a review of certain professional prerequisites, such as the Greek language requirement for specific roles.

Finally, she proposed revising urban planning zones in city centres by reducing coverage ratios and allowing increased building heights to encourage urban density and revitalisation.