The Government is moving forward in important areas with the aim of modernizing and simplifying the procedures, as well as the operation of the appropriate incentives that will strengthen competitiveness and respond to the needs of the time, said today the President of the Republic, Mr. Nikos Christodoulidis, in his speech at the Annual General Meeting of the Cyprus Real Estate Development Association.
The following is the full text of the speech of the President of the Republic.
It is with great pleasure that I participate again this year, together with the Minister of the Interior, in the annual General Assembly of the Cyprus Real Estate Development Association. An Assembly which, among other things, is also a unique opportunity for an exchange of views, but also joint planning for the future of development and the economic course of our country. After all, the real estate and land development sector has always been at the center of the economic development of our country. Your contribution to the creation of new jobs and to the competitiveness of our country is of decisive importance both for the local economy, but also for the development of our country in general.
And precisely on the basis of these data, as a Government, we recognize the importance of your industry and work to further strengthen the institutional, fiscal and administrative framework in which you are called upon to operate. With a clear orientation and a clear reform approach, our Government is moving forward, from the first day of taking over the governance of the country, in important areas. with the aim of modernizing and simplifying the procedures, as well as the operation of the appropriate incentives that will, on the one hand, strengthen the competitiveness of our country, and on the other, respond to the needs of the time, and, above all, to address the challenges we all face.
Achieving our common goals requires bold decisions and overcoming timeless, anachronistic distortions by adopting more flexible, more modern, more efficient methods. And in this context, as a Government, we have shown in action and not in words that we have the necessary political will and courage, and we have made substantial changes to the development licensing process. By implementing an integrated design, we proceeded to speed up the licensing procedures, eliminating unnecessary bureaucratic obstacles and significantly reducing delays. At the same time, the digitization of applications and their electronic examination contributed to the drastic shortening of time and the limitation of unjustified delays.
For example, I should mention that applications for low-risk deployments are now considered within 40 working days, while medium-risk deployments within 80 working days. And I'm really glad, because the new licensing method has been successfully implemented in the last year, with significant results: more than 1,400 applications for single-family houses and two-family houses have already been examined within the specified time frame, as well as more than 260 applications for multi-family houses up to 20 apartments. In addition to facilitating citizens, scholars and professionals, the new licensing mechanism offers speed, predictability and, of course, transparency. Consequently, it also allows the real estate development sector to evolve, remaining resilient, competitive and, of course, an important pillar of progress for the Cypriot economy.
As we have repeatedly mentioned, the issue of housing is, from the first day of taking over the governance of the country, a top priority. And we have proven it in practice. Already, we have announced a series of measures, within the framework of the integrated housing policy, with an emphasis on affordable housing, especially for our young people, and we are pleased to see the strong interest in taking advantage of the housing projects we are already implementing. It is particularly important to us that in this great effort to address the housing problem we have all of you, the industry professionals, as partners and fellow travelers. From the beginning, your input has been instrumental in shaping, improving and effectively implementing the measures, and I would like to take the opportunity today, on behalf of the State, to publicly thank you.
Your interest in the Urban Development Incentive Scheme is particularly high and is expected to yield more than 1,500 housing units, of which approximately 250 will be available at affordable purchase or rental prices. With the increase in the supply of high-quality, high-standard housing, we are sure that many of our fellow citizens will be able to meet their housing needs, gradually addressing a social problem that does not only concern Cyprus, it is a European challenge. And it is precisely in this context that today, together with the Minister of the Interior, we announced two emblematic policies of the Government concerning housing.
The construction of approximately 500 affordable homes on state-owned land in Nicosia, Limassol, Larnaca and Paphos, which will be granted to families or single individuals, for an affordable rent. The cost is expected to reach 70 million euros, in addition to the value of the state land, which is estimated at around 7 million euros. This is a decision that proves in practice our determination and will to face the housing challenge. The state lots will be tendered to the private sector for Design and Build construction, and ownership will remain with the state. At the same time, today, in response to a constant request of yours, we announced the construction of Collective Accommodation units, to house workers in sectors that have an increased need. This is a decision which will further decongest the increased demand for housing for workers and contribute and in reducing the price of rents.
In relation to housing, I should also mention that it is one of the topics that has an important place on the agenda of the Cyprus Presidency of the Council of the European Union (EU), which we are undertaking in three weeks, and we will work towards the adoption of specific actions at the European level. Despite the fact that housing policy issues are not EU issues, they are a national competence, it is important that the EU, after our own interventions, is moving at a collective level to address this challenge.
I should note that, for the first time, the issue of housing occupied the European Council of last October, and it is extremely important that, I repeat, with the interventions of the Minister of the Interior at the level of the competent Council, with interventions of mine at the level of the European Council, with a recent decision of the EU, existing funds from the Cohesion Fund can be used for housing purposes.
At the same time, precisely because of this interest now on the part of the EU, I should mention that we expect the President of the European Commission to publicly present the European plan for affordable housing in the coming days, on December 16, which we will certainly use as the Republic of Cyprus.
Despite the geopolitical challenges, international turmoil, the Cypriot economy continues its upward trajectory, with strong performances, which allow us to look to the future with optimism and invest in the Health, Education and Housing sectors. The responsible fiscal policy we implement has strengthened our country's credibility vis-à-vis international rating agencies and our partners in the EU, but also in the region. And precisely in this context, the stable and developmental course of our economy is also reflected in the growing investment interest from Cypriot and foreign businessmen. In the near future, we will have important announcements, important political agreements – foreign policy is directly intertwined with domestic policy – with three states. With a member state of the EU, with a state from the Gulf countries and with an Asian state. Interstate agreements that will strengthen even more more foreign investments in our country, because there is a strong interest in investing in our country.
With the aim of better service and the creation of a modern investment environment, we also launched the upgraded Business Service Center a few months ago, housing all the relevant Services under a single entity. By appointing a Project Manager for Strategic Developments, we offer targeted guidance, less bureaucracy and significantly faster processes. I am pleased to inform you that, through the Federation of Employers and Industrialists (OEB), you are already participating in informational meetings, in order to make full use of the Center's services and to transfer this experience to your network of partners, because the decision to upgrade, to modernize this particular Center was made, in order to deal with chronic distortions, and there is an opportunity there, which you must take advantage of.
At the same time, the tax reform is in the final stages, and we hope before the end of the year that the House of Representatives will pass the tax reform, to be implemented from the 1st of the year. A new, fairer, more flexible tax framework, which will undoubtedly strengthen Cypriot businesses even more, and this was something we had highlighted as a necessity from the very beginning.
The revision of the legislation on public contracts is moving in the same direction. We need to move on to more changes. Our aim is to establish a strong and reliable public procurement system, which will enhance transparency and healthy competition, reduce delays, enable better planning and control and ensure the quality and sustainability of development projects.
Our country has a great opportunity in front of it: to continue to evolve, to develop with a resilient and competitive economy, where responsibility, extroversion and collectivity are the foundations and guide our every political choice.
In this effort, your Association is an important partner and partner for us. Your experience, knowledge and active participation are necessary to formulate policies that respond to the needs of the market, protect the public interest and contribute to the further development of the Cypriot economy which allows us to invest in Education, Health and housing policy.
I wish every success in the work of your General Assembly and reiterate our political will to strengthen cooperation with all of you, professionals in the sector, with the aim of further upgrading the economy and the continuous improvement of the quality of life of our citizens.
