Interior Minister Constantinos Ioannou on Wednesday evening said that licensing reform had become one of the government’s most important tools for speeding up development and supporting housing policy.

Addressing the annual official dinner of the Cyprus’ real estate developers association in Limassol, Ioanou said that the reform of development licensing was among the most important interventions implemented in recent years.

The event, which the association described as one of the most important institutional gatherings of Cyprus’ business community, was attended by Ioannou on behalf of President Nikos Christodoulides. 

In his address, the minister congratulated the association for “its long-standing and substantial contribution to one of the most important and productive sectors of the Cypriot economy”, saying land and real estate development played a crucial role in the modernisation of cities and communities, the upgrading of infrastructure, job creation, the attraction of strategic investment and the strengthening of Cyprus’ competitiveness. 

His comments came at a time when the property sector remains one of the island’s strongest economic drivers, but also one of the most closely watched, as rising prices, tight supply and affordability concerns continue to dominate the housing debate. 

Ioannou said Cyprus was going through a period of important reforms, as well as adaptation to new economic, technological and environmental challenges. 

Within that changing environment, he said, “the government attaches particular importance to the formation of a modern, effective and development-friendly institutional framework, which allows businesses to invest, innovate and develop with security and perspective”. 

He said the licensing reform was central to that effort, adding that faster and more automated procedures, stronger e-governance and the use of modern digital tools were designed to reduce bureaucracy, accelerate applications and improve service to citizens, investors and businesses. 

Pointing to the first results of the reform, Ioannou said almost 3,000 housing units and around 1,000 apartment buildings had been licensed within 40 and 80 working days respectively, figures which, he said, confirmed the need for the changes. 

These results, he added, were contributing both to the smoother implementation of development projects and to the strengthening of the state’s housing policy. 

The housing angle gave the dinner broader political weight. Access to quality and affordable housing is now one of the most pressing challenges facing Cyprus and the wider European Union, Ioannou said, noting that the government was implementing a comprehensive housing policy aimed at increasing supply and expanding the options available to citizens, especially young people and young families. 

“In this effort, the real estate development sector is a constructive partner of the State, as the creation of new housing units and the acceleration of the implementation of quality and sustainable projects contribute decisively to the achievement of our goals,” he added. 

The remarks also came against a strong property backdrop. Apartment prices in Cyprus rose by 10.8 per cent year-on-year in the first quarter of 2026, while the broader residential property price index increased by 7.5 per cent, according to Central Bank of Cyprus (CBC) data. 

At the same time, property sales remained resilient, with sales documents rising by 11.9 per cent year-on-year in the first five months of 2026. Limassol remained the largest market, recording 2,537 sales documents between January and May. 

For the government, this creates both an opportunity and a challenge. The sector continues to attract investment, support employment and shape urban development, but the same growth has intensified concerns over whether younger buyers and middle-income households can still access the market. 

Ioannou said the government would continue modernising services directly linked to land and real estate development, including reforms at the departments of lands and surveys and the Land Registry, with the aim of creating a more efficient, transparent and citizen- and investor-friendly public administration. 

“We are further investing in the digitalisation of procedures, the upgrading of electronic services, the reduction of administrative delays through the reorganisation of the competent services and the improvement of the processing of applications,” he said. 

“Our goal is to provide faster, higher quality and more reliable services to everyone,” he added. 

The minister said Cyprus’ competitiveness as an investment destination was directly linked to the efficiency of public services and the state’s ability to license, service and facilitate quality developments. 

“The reforms we are implementing are precisely aimed at creating an environment that enhances the attractiveness of our country for new investments,” he said. 

Beyond licensing, Ioannou said the government viewed the private sector as a valuable partner in the country’s development strategy, particularly in relation to the green transition, the energy efficiency of buildings, smart cities, the use of technology and the adoption of innovative practices in design and construction. 

However, he also said the sector’s continued growth required dialogue, institutional cooperation and commitment to transparency, quality and reliability. 

“Only through a relationship of mutual trust between the State and the business community can we ensure conditions of stability, development and long-term progress,” he said. 

The association has also placed affordable housing high on its agenda. Its chairman, Yiannis Misirlis, has previously described the issue as one of the country’s greatest social challenges, while saying the sector is ready to support efforts to address it.