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Investments in Cyprus construction continue to fall

October saw a sharp fall in the number of building permits issued in Cyprus according to figures published earlier today by the Island’s Statistical Service which show a drop of 19 percent compared with October 2010.

THE sharp decrease of investment in new construction projects in Cyprus is continuing according to figures published earlier today by the Island’s Statistical Service (CySTAT).

CySTAT’s figures reveal that a total of 594 building permits were authorised by the Municipal Authorities and District Administration Offices in October 2011. Compared with the 733 permits authorised in October 2010; a fall of 19%.

In October, building permits were issued for:

  • Residential buildings – 404 permits
  • Non-residential buildings – 111 permits
  • Civil engineering projects – 20 permits
  • Division of plots of land – 56 permits
  • Road construction – 3 permits

The total value of these permits reached €170.5 million and their total area 180.8 thousand square metres.

During the period January to October 2011, 6,345 building permits were issued; a decrease of 13.2% compared to the corresponding period of last year. The total value of these permits fell by 21.8% and their total area by 24.1%.

Residential buildings

In October, 404 permits were approved for the construction of 617 dwellings comprising 288 single houses and 329 multiple housing units (such as apartments and other residential complexes).

This is a fall of 50.9% compared with October 2010 when building permits were issued for the construction of 1,257 dwellings.

Source: Cyprus Statistical Service

During the first ten months of 2011, building permits were issued for the construction of 7,694 dwelling units compared with 12,430 during the same period in 2010; a drop of 4,4736 (-38.1%).

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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  • andyp says:

    Begs the question Nigel, why are we occupying these properties without permits?

    Does this not take us back to The State being responsible for turning a blind eye?

  • @Mike – unfortunately, CySTAT doesn’t publish who applied for building permits. But it does say that 543 of the permits were for ‘small’ projects and 51 were for ‘big’ projects (> 900sqm.).

    It also doesn’t publish which of those permits have been issued for the first time – and which have been issued for a second/third/forth… time due to changes made during the course of construction.

    Finally, as some of these permits will be for properties that have already been constructed, it’s very difficult to read anything meaningful into the figures (apart from the fact that investment in construction is falling).

    PS. Some of the permits may result from αντιπαροχή agreements the terms of which, I have been advised, can be very strict.

  • Mike says:

    We must not forget that some of the residential building permits may be issued to those of us who build our own or have our own built on our own land for our own or our families personal use.

    It would be interesting to know how many residential permits are applied for by developers as against local builders on behalf of and private individuals.

    In any event the figures identify the underlying trend which is not a good sign but will meaningful measures be taken to reverse the trend – of course not!

  • Gavin Jones says:

    Robert Briggs.

    EVERYONE in Cyprus is “in a state of denial”.

    All the protagonists in the construction industry are irrevocably locked in to one another and there’s no escape. (Developers, banks and the state).

    Because developers are indebted to the banks for billions of euros, the latter can’t foreclose. If they did, they’d be left with thousands of properties and parcels of land which THEY would then have to sell: an unlikely scenario. It would also threaten their own existence which is in any case precarious. This would in turn shift the onus onto the state.

    In short, the game’s up and the above constituent parts will continue to sit on their hands as they’re unable to do anything else – other than stump up the cash which they don’t have.

    As mentioned in recent articles and comments, EU Commissioner Reding COULD hold the key to potentially bringing this edifice tumbling down. We shall see.

  • Robert Briggs says:

    Yet they are still building, hoping that the good times will return? The property construction industry perhaps is in a state of denial. Even these people should realise that the property laws should be placed on a decent legal footing. 1st step, Title Deeds to be available at point of sale, end of story!!

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