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Investments in construction at lowest level in years

Investments in the Cyprus construction sector remain at their lowest level in years, with no signs of a recovery on the horizon according to the latest figures from the Island’s statistical service.

FIGURES released today by the Cyprus Statistical Service offer no encouraging signs of an upturn in investments in the construction sector as the number of building permits issued continues to fall.

A total of 696 building permits were authorised by the Municipal Authorities and the District Administration Offices in June 2011. Compared with the 792 permits authorised in June 2010, this reflects a fall of 21.1% over last year.

In June 2011, building permits were issued for:

  • Residential buildings – 515 permits
  • Non-residential buildings – 93 permits
  • Civil engineering projects – 31 permits
  • Division of plots of land – 46 permits
  • Road construction – 11 permits

The total value of these permits reached €163.1 million and the total area 174.0 thousand square metres.

During the period January to June 2011, 4,024 building permits were issued; a fall of 12.9% compared to the same period last year. The total value of these permits fell by 24.6% and their total area fell by 229.3%.

Residential buildings

Of the 515 permits approved for the construction of residential buildings, these were issued for the construction of 662 dwelling units comprising 293 single houses and 369 multiple housing units such as apartments and other residential complexes.

Compared to the June 2010 total of 1,193 dwelling units, this represents a fall of 44.5% and an overall year-to-date fall of 42.2%.

Source: Cyprus Statistical Service

Limassol has suffered the worst fall, with the number of dwelling units for which permits have been issued down by 51.0% compared with last year. Limassol is followed by Larnaca (-48.8%), Famagusta (-37.4%), Nicosia (-36.2%) and finally Paphos (-31.6%).

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

Readers' comments

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  • Jill Warr says:

    The answer’s simple really as everyone knows – GIVE US OUR TITLE DEEDS – treat the people who already live here with a modicum of respect instead of treating us as idiots, and give people what they are entitled to. TITLE DEEDS …..Once these are readily available, instead of pussyfooting around with asking us to pay off developers mortgages (Ha!) perhaps things might pick up,,,,

  • Richard says:

    Excellent news.

    Whilst it’s not good practice to extol clichés – there is no smoke without fire – and Greek / Cypriot culture is not one that is seen as bursting with collaboration, innovation and energy. As the late & great Paul Arden said: “Energy – if you haven’t got it – be nice”. I’m afraid on many occasions they’ve fallen short of the line here too!

    Sometimes the low-hanging fruit gets picked clean and you have to start working harder to reach fruit off the higher branches.

    It’s time for both the Greeks and the Cypriots to start thinking about building a more diversified economy – and opening up their resources to other nations to help do it in a ‘win win’ collaborative way. Stop blaming everyone for your shortcomings, and get up off your rears!

    A small example of how Cyprus can be (which I accept is off topic but indulge me). When the Japan tsunami hit them in spring – it was ‘believed’ that seafood for Sushi caught in Japanese waters was contaminated by radioactivity. The ONLY 2 countries in the world to instigate a trade ban on Japanese Sushi & seafood products? USA & CYPRUS.

    Now I’d kind of expect that from the USA – despite their economic power – only 5% of them have a passport and they did fight a bitter war with Japan. Cyprus? Come on – the whole damn world rallied aid (inc USA) – and all you could do from your tiny little island was issue a trade ban on them!

    Perhaps the EU should throw you out of being a trading partner as you are suspected to have made the whole construction industry a stinking pit of corruption and malpractice. No-one outside of Cyprus will ever be allowed to invest in the island again – you can only sell to domestic citizens. How would that go down Cyprus?

    I don’t know if anyone of any influence on the island reads this forum or not – but you won’t see construction sector lift back up – of course you won’t. You don’t deserve it. You haven’t earned it.

    There’s a lot of hard work to do Cyprus.

    Shovel’s are over there….

  • Adrian Wright says:

    Perhaps they should stop building until the Land Registry catches up with the title deeds!!

  • Costas Afortune says:

    When will this little island realise that us Brits have had enough ? Facebook sites, blogs, holiday homes from hell, and even demonstrations outside of UK property shows. Corruption and disregard for European laws have had it’s last laugh at unsuspecting investors whom now are starting to fight back, and quite rightly so! Our money will dry up because of their greed, and then what? The knock on effect when we stop buying there overinflated priced properties will be massive.

  • JRB says:

    I submitted a permit for a summer house back in July and am still waiting on a reply. After that according to my architect I will have to submit another further four permits. I expect the whole process will take at least six to eight months before I can even start building. During this wait the incompetent leaders managed to blow up the power station, the cost of living continues to climb, and there is no end in sight. I am having doubts about proceeding with the project. Why invest half a million to buy land and build a house and when it’s finished it may be worth only a fraction of that. When Cyprus rids itself of the incompetence at the top maybe investors will return. I have lived here 22 years, invested heavily here and the current state of affairs is the worst I have seen. May God help save us from our leaders!!

  • Costas Apacket says:

    Quelle surprise!

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