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Construction investment decline continues

Investment in the Island’s construction sector is continuing to decline according to figures published earlier today by the Cyprus Statistical Service, which reveal a 13.3 percent fall in the number of building permits issued over the first nine months of this year compared with last.

FIGURES from the Cyprus Statistical Service (CYSTAT) released earlier today show that investments in the Island’s once thriving construction sector are continuing to fall.

CYSTAT’s figures reveal that a total of 648 building permits were authorised by the Municipal Authorities and District Administration Offices in September 2011. Compared with the 717 permits authorised in September 2010, this represents a fall of 9.6%.

In September, building permits were issued for:

  • Residential buildings – 465 permits
  • Non-residential buildings – 99 permits
  • Civil engineering projects – 26 permits
  • Division of plots of land – 50 permits
  • Road construction – 8 permits

The total value of these permits was €187.8 million and their total area 219.5 thousand square metres.

During the period January to September 2011, 5,751 building permits have been issued; a decrease of 13.3% compared to the corresponding period of last year. Their total value decreased by 21.9% and their total area by 24.2%.

Residential buildings

In September, 465 permits were approved for the construction of 932 dwelling units comprising 329 single houses and 603 multiple housing units (such as apartments and other residential complexes).

This is a marginal improvement of 3.2% compared with September 2010 when building permits were issued for the construction of 903 residential units.

Source: Cyprus Statistical Service

So far this year, building permits have been issued for the construction of 7,077 dwelling units against 11,173 during the same period last year; a drop of 4,096 (-36.7%).

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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  • Costas Apacket says:

    The Government ought to introduce a control system for companies who supply ready mixed cement which means that they cannot deliver the goods to site unless the written order from the builder/developer contains details of the building permit number for that particular development site.

    Yes I know it’s never going to happen!

  • @hector – one of the problems is that construction work is started (illegally) before building permits have been issued and sometimes they are not sought until the project has been completed.

    Even if building permits were issued some time ago and changes were made during the course of construction, a ‘cover’ building permit may be needed.

    Also, with the Town Planning Amnesty some of these permits may relate to properties with planning infringements for which a ‘new’ building permit has been sought.

    Unfortunately, the information provided by the Statistical Service doesn’t differentiate which are:

    Permits for construction that has yet to take place.

    Permits for construction that has already taken place.

    Cover permits for changes made during the course of construction.

    ‘Amnesty’ permits issued under the provisions of the Town Planning Amnesty.

    I think all that we can safely deduce from the figures is that that investment in construction activity is falling.

  • hector says:

    I think there is a big difference between the number of new building permits and then construction taking place. Does anyone know how many of these building permits are actually started?

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