Cypriot property developers are complaining about delays in obtaining building permits. According to local experts, this is hampering the realisation of a number of residential and commercial projects on the island.
To date, more than 33,000 applications have accumulated in the district organisations of the local government responsible for issuing permits. Developers are outraged by the chaos and confusion in the authorities. It is not uncommon for licences not to be issued because documents have been lost.
Many are convinced that the year 2024 is effectively lost in terms of the development of construction projects in Cyprus. Developers fear that the construction industry has suffered significant damage. The head of the Association of Property Surveyors, Polis Kourousidis, stated that the delays caused by the current bureaucracy will not only affect the property sector in Cyprus, but also the economy as a whole. He also stressed that the resulting increased costs will not only fall on the shoulders of local developers, but also on the shoulders of buyers.
Red tape adds to property prices. Once planning permission has been granted, a building permit is required, which essentially allows the owner to get a loan from a bank to start the project. Without a building permit, the bank cannot give a loan. And while the project is in limbo, the developer's costs increase, which he is likely to pass on to the buyer in the future," says Kourousidis.
It should be recalled that since the first of July, the power to issue building permits has been vested in the District Local Authorities (EOA).
There are 5 of them across Cyprus - in Limassol, Nicosia, Larnaca, Paphos and the free districts of Famagusta. Each organisation is responsible for urban planning, sewerage, water supply and waste management. It was expected that these changes would greatly simplify the review and approval process. In fact, despite significant efforts to streamline procedures and increase staffing levels, the number of building permits reviewed and issued remains well below the levels prior to the legislation establishing the EOA.