In an effort to revamp land development and construction processes across the island, Interior Minister Constantinos Ioannou has unveiled a series of legislative changes aimed at streamlining procedures and enhancing collaboration between public and private sectors.

During the 15th Nicosia Economic Congress, Minister Ioannou highlighted significant initiatives, such as plans to simplify permit fee structures, a bill addressing jointly-owned buildings, and legislation aimed at facilitating urban land redistribution.

“Our aim is to enhance the efficiency of interactions between citizens, businesses, and the government,” he stated. “We are striving for a construction and development sector that is sustainable, resilient, and capable of thriving.”

A major highlight is the simplification of the building permit process. Ioannou elaborated on the fast-track licensing system that delegates much of the approval responsibility to private sector planners. This system has already facilitated the submission of 756 residential permits and 56 applications for apartment blocks.

“This reform is our most significant to date,” Ioannou noted, emphasizing that the process considerably reduces approval times and eases the administrative load on local authorities.

To support these efforts, the ministry has enhanced district self-governance organizations (EOAs) with increased staff by 24%, the approval of over 300 new positions, and more than doubling the number of employees dedicated to licensing.

Since the reforms commenced, a total of 22 measures have been introduced to simplify processes, aiding local authorities in standardizing their operations and enhancing efficiency.

Further reforms are anticipated, with a proposal to simplify permit fee structures set to undergo public consultation by May, with Cabinet approval expected in June.

Minister Ioannou also emphasized two crucial bills: one concerning jointly-owned buildings, currently under legal review, and another addressing urban land redistribution, already submitted to the House of Representatives. The latter seeks to unlock development potential in landlocked plots, a persistent challenge for property developers.

He reiterated the government’s dedication to working closely with the private sector. “We have established a cooperative framework with all organized entities in the land development and construction industry,” he stated. “By addressing their concerns, we can offer practical, targeted solutions.”

Despite progress, Ioannou acknowledged that challenges remain, including revisions to local development plans and an overhaul of the land registry.

The reforms were met with a cautiously optimistic response from real estate professionals at the event, who didn’t hesitate to express ongoing concerns.

Platon Eliades from the Lanitis Group (Cybarco) praised the government’s direction but mentioned delays due to local government restructuring. He also addressed the rising property prices that challenge buyers and commended government efforts to improve access through housing schemes.

Michael Leptos of the Leptos Group noted the encouraging increase in residential permits but expressed concern over the stagnation of large-scale projects. He called for consistent policy and deeper collaboration between government and private sectors, particularly on infrastructure.

Melina Rafti from Korantina Homes described the backlog of permits, especially for 2021 and late-2023 applications, as a “cancer” and suggested that older applications could be handled by private planners to alleviate local authorities. Although Ioannou stated that such decisions lie with individual EOAs, Rafti emphasized the importance of supportive infrastructure like marinas and cultural venues to attract real estate investment.

Despina Chrysosthou from Cyfield supported fast-track licensing but stressed the need for quicker titling procedures. She praised the Cyprus Land Development Corporation’s affordable housing program as the most effective to date and pointed out labor shortages as a significant issue. Chrysosthou welcomed the Labour Ministry’s new licensing scheme for third-country nationals but advocated reevaluating Greek language requirements in specific professions.

Lastly, she proposed reexamining urban zoning laws, suggesting lower coverage ratios and allowing greater building heights in city centers to foster revitalization and increased population density.

As Cyprus advances in modernizing its land development framework, a shared vision of efficiency, sustainability, and growth is evident from both the government and private sector. Although challenges remain, the mutual willingness to collaborate promises long-term progress.

With legislative drafts moving forward and new systems already making a difference, the groundwork is set for a more responsive, investor-friendly property sector designed to harmonize robust development with effective governance.