In a bid to modernise land development and construction across the island, Interior Minister Constantinos Ioannou has announced a wave of legislative reforms designed to streamline processes and strengthen collaboration between the public and private sectors.
Speaking at the 15th Nicosia Economic Congress during a roundtable with real estate professionals, Minister Ioannou outlined key initiatives under way, including plans to simplify permit fee structures, a forthcoming bill on jointly-owned buildings, and legislation to facilitate urban land redistribution.
“Our goal is to make daily interactions between citizens, businesses, and the state more efficient,” he said. “We envision a sustainable, resilient construction and development sector that continues to thrive.”
Reducing bureaucracy to boost private sector growth
Central to the government’s agenda is the simplification of the building permit process. Ioannou highlighted the fast-track licensing system introduced, which hands over much of the responsibility to private sector planners. This move has already seen 756 residential permits and 56 apartment block applications submitted through the scheme.
“This is the most significant reform to date,” Ioannou said, explaining that the new process dramatically cuts down on approval times and reduces the administrative burden on local authorities.
To bolster the effort, the ministry has increased staffing levels in district self-governance organisations (EOAs) by 24 per cent, approved over 300 new positions, and more than doubled the number of employees handling licensing.
A total of 22 simplification measures have been introduced since the reforms began, helping local authorities standardise their procedures and operate more effectively.
Further changes are on the horizon, with a proposal to simplify permit fee structures expected to go to public consultation by May, ahead of Cabinet approval in June.
Urban planning and infrastructure
Minister Ioannou also underscored the importance of two key bills: one on jointly-owned buildings, currently under legal review, and another on urban land redistribution, which has already been submitted to the House of Representatives. The latter aims to unlock the development potential of landlocked plots, a long-standing issue for property developers.
He reaffirmed the government’s commitment to working closely with the private sector. “We have established a framework for cooperation with all organised entities in the land development and construction space,” he said. “By listening to their concerns, we can offer effective, targeted solutions.”
Despite the progress, Ioannou acknowledged there is still work to be done. Revisions to local development plans and a thorough overhaul of the land registry are among the major challenges still to be tackled.
Industry cautiously optimistic
Real estate stakeholders present at the event responded positively to the reforms, though they did not shy away from highlighting ongoing concerns.
Platon Eliades of the Lanitis Group (Cybarco) welcomed the government’s direction but cited delays caused by local government restructuring. He also noted the challenges many face in buying property, due to escalating prices, and praised government efforts to ease access through housing schemes.
Michael Leptos of the Leptos Group pointed out that the rise in residential permits is encouraging but flagged concerns over the stagnation in large-scale projects. He called for policy consistency and deeper collaboration between the government and private firms, particularly on infrastructure.
Melina Rafti of Korantina Homes described the permit backlog – especially for applications submitted in 2021 and late 2023 – as a “cancer,” proposing that older files be handed over to private sector planners to relieve local authorities. While Ioannou said such decisions rest with individual EOAs, Rafti stressed the need for supportive infrastructure like marinas and cultural venues to attract real estate investment.
Despina Chrysosthou of Cyfield echoed support for fast-track licensing but added that titling procedures must also be accelerated. She praised the Cyprus Land Development Corporation’s affordable housing programme as the most effective to date, and highlighted labour shortages as a significant concern. Chrysosthou welcomed the Labour Ministry’s new licensing scheme for third-country nationals but urged a re-evaluation of Greek language requirements in certain professions.
Finally, she proposed a fresh look at urban zoning laws, suggesting reduced coverage ratios and greater building heights in city centres to encourage revitalisation and higher population density.
Forward-looking approach
As Cyprus continues to modernise its land development framework, both the government and private sector appear aligned on a vision for efficiency, sustainability, and growth. While challenges persist, the tone from both sides signals a willingness to collaborate for long-term progress.
With draft laws advancing and new systems already making an impact, the foundations are being laid for a more responsive, investor-friendly property sector – one that aims to balance robust development with practical governance.
