New business activity support centre announced
President Nikos Christodoulides on Thursday reiterated the government’s commitment to bolstering Cyprus’ construction and real estate sectors.
Christodoulides’ comments were delivered during his speech at the annual general assembly of the Cyprus Property Developers Association.
The event was held at the headquarters of the Employers and Industrialists Federation (Oev) in Nicosia.
“The construction sector, rightly called the ‘engine of the economy’, plays a pivotal role in showcasing Cyprus’ immense potential for business growth,” said the president.
“Your contributions over the last 41 years have been instrumental to our country’s economic and social development,” he added.
Christodoulides acknowledged the challenges posed by inflation, the ongoing conflict in Ukraine, and tensions in the Eastern Mediterranean.
“External factors have created significant pressures on your sector,” he said.
“But as a government, we respond with actions, not words, to ensure your smooth adaptation to changing conditions while seizing emerging opportunities,” he added.
Moreover, he mentioned that recently announced reforms in the construction licensing process as a key government initiative.
“Over the past year, we implemented a comprehensive reform of land development licensing procedures,” he explained.
“Starting with 22 measures,” he continued, “we significantly reduced delays that had previously hindered your activities and caused unnecessary hardship for citizens.”
One of the most impactful measures introduced was the expedited issuance of small-scale development permits.
“Since October, urban planning permits for low-risk developments, such as single and semi-detached houses, are issued within 20 working days,” the president stated.
“From January, this will also apply to building permits, reducing the time required to secure all necessary approvals to just 40 working days,” he added.
The president also announced the next phase of the reforms.
“In March, we will launch the second phase targeting medium-risk developments,” he said.
He added that “necessary permits will be issued within 80 working days, providing greater flexibility and efficiency to both citizens and businesses.”
Moreover, he pointed out that affordable housing remains a priority for the administration.
“One of our primary goals is addressing housing challenges, particularly access to affordable housing,” Christodoulides said.
“Our integrated housing policy includes seven schemes designed to increase supply and enhance citizens’ purchasing power,” he added. “I am truly pleased with the tremendous response, particularly from young people.”
He also promised increased funding for these initiatives, saying that “as long as there is public interest, the state is prepared to invest even more to ensure everyone benefits.”
The president also lauded the private sector’s response to government incentives. “I am informed of the strong interest from developers in leveraging the additional building coefficient provided under our urban planning incentives,” he said.
“This supports our objective of increasing the housing stock, particularly affordable options,” he added.
Upcoming legislation on managing shared buildings was another focal point of the president’s speech.
“Approximately 50 per cent of our population is affected by issues related to jointly owned buildings,” he said.
“We aim to empower management committees with stronger tools to ensure smoother operations, minimise safety risks, and protect citizens,” he added.
Addressing the business environment, the president announced the creation of a business activity support centre.
“This new centre will serve as a one-stop shop for Cypriot and foreign entrepreneurs,” he explained.
“Our goal is to provide immediate information and tailored guidance, improving efficiency and productivity,” the president said.
He also cautioned against legislative proposals under discussion in parliament, which he described as counterproductive.
“Some proposals, while sounding appealing, have proven ineffective in other EU countries,” he warned.
“They risk causing more harm than good to our economy,” he added.
The president also said that there is a need for banking reforms.
“Banks must reduce interest rates and find effective solutions,” he stated.
“We are working in this direction, but caution is essential to avoid measures that could exacerbate problems rather than resolve them,” he added.
President Christodoulides reaffirmed the government’s support for the construction industry.
“Your dynamic presence in local, European, and global markets is vital,” he said.
“We stand by you as partners, ensuring that your sector continues to thrive,” he concluded.
Real estate sector contributes 15 per cent to Cyprus’ GDP
Meanwhile, Yiannis Misirlis, the association’s president, opened the event by calling 2024 a “year of dynamic progress” for the real estate sector.
He said that the industry contributes 15 per cent of the nation’s GDP and employs over 40,000 people, underscoring its role as a key pillar of the Cypriot economy.
Misirlis attributed the sector’s resilience to flexibility, innovation, and strategic initiatives by developers, as well as modern and technologically advanced projects.
Moreover, he stated that the industry had navigated significant challenges, including the housing crisis, licensing delays, inflation, high interest rates, and geopolitical tensions.
The association also announced its rebranding, adopting the new name Cyprus Property Developers Association, along with a new logo.
Misirlis emphasised the importance of collaboration with the government and various ministries, describing the partnership as based on mutual respect and a shared vision for sectoral improvement.
The association’s president also called for expedited licensing processes to address thousands of delayed projects, which he stated would increase housing supply, tackle the housing problem, and stabilise property prices.
In addition, he highlighted the acute labour shortage plaguing the sector, urging for a comprehensive strategy to ensure the sector’s competitiveness and growth.
On green initiatives, Misirlis said that there is a need to integrate sustainable practices into the industry, advocating for incentives to promote eco-friendly construction.
He mentioned that technological advancements, including artificial intelligence, offer opportunities to improve efficiency and performance.
Elsewhere, Antonis Antoniou, president of Oev, echoed optimism for the economy, citing European Commission forecasts of strong growth for 2025–2026, lower inflation, and higher wages.
Finally, Antoniou also warned of challenges such as global economic uncertainty, rising material costs, and the need for a green transition.