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Construction of new homes slows

Following ten months of double digit increases in the number of building permits authorised for the construction of new homes, August saw an increase of 6.6 per cent compared to August 2016.

Cyprus: Construction of new homes slowsTHE NUMBER of building permits authorised in Cyprus during August 2017 stood at 410 compared with the 381 authorised during the same period last year; an increase of 7.6% according to official figures released by the Cyprus Statistical Service.

The total value of these permits reached €90.3 million and their total area reached 85.0 thousand square metres.

During August 2017, building permits were issued for:

  • Residential buildings – 302 permits
  • Non-residential buildings – 62 permits
  • Civil engineering projects – 9 permits
  • Division of plots of land – 33 permits
  • Road construction – 4 permits

During January to August of 2017, 3,772 building permits were issued compared to 3,434 during the same period in the previous year; an increase of 9.8%

The total value of these permits increased by 49.1% and the total area by 39.5%.

Building permits for new homes

The 302 residential building permits approved in August provided for the construction of 244 new homes comprising 142 single houses and 102 multiple housing units (such as apartments, semis, townhouses and other residential complexes); an increase of 6.6% compared with August 2016 when permits were issued for the construction of 229 new homes.

Building Permits Issued for the Construction of New Homes
(Number of Dwellings)

Month2016
(Dwellings)
2017
(Dwellings)
Increase/
Decrease
%age
Change
January24338113856.8%
February3123837122.8%
March30641210634.6%
April2012898843.8%
May27842414652.5%
June2873819432.8%
July38253715540.6%
August229244156.6%
Totals2,2383,05181336.3%

Construction and housing statistics

The Cyprus Statistical Service recently published Construction and Housing Statistics for years 1995 to 2016, which show the contraction of the industry in the years after the property bubble burst and the recession.

Between 2008 and 2016, constructions lost 73 per cent of their added value and although they are recovering gradually they are nowhere near the figures of a decade ago.

The number of new homes completed has yet to reach the number last seen in 1995. In 2015 the number of new homes completed reached 2,390, down by almost two thirds on the 6,891 completed in 1995. It’s worth noting that during the boom years the number of new homes completed soared reaching 18,195 in 2008.

Similarly the number of building permits authorised for the construction of new homes in 2016 stood at 3,649 compared with the 8,776 issued in 1995.

Although the construction sector has started on the long road to recovery, the journey is going to take many, many years.

Readers' comments

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  • Deanna says:

    @ Ed. Ditto; our hire car people used to leave it in Larnaca (old airport) ‘somewhere’, with keys in ashtray and yes, leave it there for next customer on our departure.
    Imagine these days leaving your car unlocked with keys in the ashtray!!!
    Good old days/ different world.

  • steve r says:

    I agree about stopping new builds. Our site of 7 new builds (hardly new builds, they were started in 2005) lay still unfinished. The builder went bust in 2008 and a receiver was appointed. Nothing has been done since then. Three properties are now in a derelict state. If the site was brought up to scratch by a developer and the 3 properties were repaired, they would bring in around €900,000.

  • Deanna says:

    @Ed. Lol yes ‘the English always pay on time’

    In the early ’90s I was in Napa – it was a jewellers – and really took a fancy to one item. I said “I don’t have enough money, I will come back tomorrow” The lady in the shop insisted I took the item with me “because the English always pay”….

    Probably not the same these days!

    Ed: I experienced something similar when we used to come here on holiday. I rented a car from a firm in Limassol (the chap who ran it called me ‘captain’ because of my beard). He used to leave a car for us at Larnaca airport with the keys in the ashtray. I used to drive to Limassol and call him from the hotel to see when I should pay. “No rush” he used to say “call into the office when you’re passing”. When we were going back to the UK he used to give me a car to leave at the airport for another customer.

  • Deanna says:

    Common-sense from Pils. There should be no more permits issued until NPLs are cleared.

    The stats in the article refer to ‘new-builds’; are there any stats on ‘not completed new-builds’ which are still standing derelict? I have a personal interest in this since I have an unfinished house looming over what was once my ‘back garden’ since 2008.

    Ed: Unfortunately there are no statistics on incomplete builds. Many people lost money as a result of the haircut and have not been able to finish building. (There’s an unfinished block of apartments in Limassol no far from the port – its developer went bust in the 1980s)

    Regarding NPLs – the banks made it too easy to borrow money in the boom years – they were throwing it around like water. Plus they were offering very high interest rates for depositors to encourage investment. And getting some people to pay is difficult. I remember buying some marble when my house was being built and when it was delivered I went to the shop and paid. The chap there said that he liked English customers because they always paid on time.

  • pils says:

    Cyprus have a dilemma of NPL with many properties lie unsold ,derelict . Why build more properties ? To improve Cyprus NPL, all efforts required to restructure loans, sort out CHF loans and sell many unsold properties then Cyprus can build new property developments.
    Cyprus do things in a back to front way.

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