Cyprus President highlights reforms for development, licensing and affordable housing – impact on real estate sales in Cyprus

Cyprus President Nikos Christodoulides made special reference to reforms regarding development licensing, public contracts and new measures aimed at addressing the housing challenge in the country.

He spoke during his address at the 31st General Assembly of the Cyprus Federation of Building Contractors Associations (OSEOK), held in Nicosia on 29 November.

The President underlined that the construction sector continues to play a decisive role in the country’s development, noting that the Cypriot economy is currently performing at a level comparable to, and in some aspects exceeding, large European states. This momentum also affects the wider property market and long-term demand related to real estate sales in Cyprus.

He highlighted the revision of development licensing procedures as a top government priority, with a new framework based on fast-track procedures for low and medium-risk projects, representing almost half of all applications.

According to the President, the goal is to reduce bureaucracy and simplify and digitise relevant procedures. The government aims to reduce timeframes for planning and building permits to 40 working days for single-family and two-family homes and to 80 working days for apartment buildings with up to 20 units. These improvements could indirectly support future construction activity and encourage investing in Cyprus housing across different regions.

Christodoulides added that since the implementation of the new system, more than 1,400 applications for single and two-family homes and approximately 260 applications for apartment buildings with up to 20 units and small residential complexes have already been examined under the fast-track procedure within the prescribed deadlines.

Permit delays

The President also referred to the persistent issue of delays in the issuance of permits by local District Authorities, noting that indicators show gradual improvement.

Regarding measures to address the housing problem, Christodoulides mentioned Urban Planning Initiatives and the Build to Rent scheme. Through this framework, developers are granted an additional building coefficient of up to 45 percent, provided that a share of the additional units will be offered at affordable prices for purchase or rent.

As a result, approximately 1,500 housing units are expected to be constructed within the next two years, including about 250 that will be classified as affordable.

These steps may influence the direction of residential development and stimulate interest in buying property in Limassol and other fast-growing urban districts.

European initiatives

The President also highlighted actions at European level, noting that the President of the European Commission is expected to announce a European strategy for affordable housing in December. Considering that Cyprus will assume the Presidency of the Council of the EU, the Republic intends to be an active partner in shaping a joint European housing policy.

Contractors’ contribution

OSEOK President Stelios Gavriel pointed out that contractors contribute around 12 percent of the country’s GDP, with 6 percent coming directly from construction activity. The sector employs more than 43,000 technical and creative staff, and around 2,500 contractors are currently registered with OSEOK.

He also stressed the labour shortage and the need for a comprehensive long-term strategy, including more effective procedures for hiring workers from third countries and possible transnational agreements with states offering qualified labour.

Modern approaches

ETEK President Constantinos Constanti stated that modern approaches are required in the chain of public works, stressing that the country deserves better procedures, transparency and faster decision-making at the necessary quality level.

He also expressed disagreement with the existing ministerial framework regarding public contracts, emphasising the need for a healthy market environment for successful implementation of public infrastructure.

Cyprus Employers and Industrialists Federation (OEB) President George Pantelidis, through a speech delivered by Vice President Demetris Vakis, underlined the role of the construction industry as an economic driving force and an essential contributor to Cyprus GDP.