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Residential property construction plunges 41 percent

Investments in the Cyprus construction sector continued their downward spiral in November according to the Island’s Statistical Service, which released the latest building permit figures earlier today.

NOVEMBER saw another sharp fall in the Island’s construction sector according to the latest figures from the Cyprus Statistical Service.

CySTAT’s figures show that a total of 601 building permits were authorised by the Municipal Authorities and District Administration Offices in November 2011. Compared with the 733 permits authorised in October 2010; a fall of 18%.

In November, building permits were issued for:

  • Residential buildings – 415 permits
  • Non-residential buildings – 102 permits
  • Civil engineering projects – 32 permits
  • Division of plots of land – 45 permits
  • Road construction – 7 permits

The total value of these permits reached €145.1 million and their total area 153.8 thousand square metres.

During the period January to November 2011, 6,946 building permits were issued; a decrease of 13.6% compared to the corresponding period of last year. The total value of these permits fell by 23.4% and their total area by 24.5%.

Residential buildings

In November, 415 permits were approved for the construction of 572 dwellings comprising 299 single houses and 273 multiple housing units (such as apartments and other residential complexes).

This is a fall of 40.8% compared with November 2010 when building permits were issued for the construction of 966 dwellings.

Source: Cyprus Statistical Service

During the first eleven months of 2011, building permits were issued for the construction of 8,226 dwellings compared with 13,396 during the same period in 2010; a drop of 5,130 (-38.3%)

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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  • Mike says:

    Frank – Authorities in the Irish Republic are considering just that. The demolition of built but unsold housing units. Despite price cuts of 75 to 80%, and more in places, they still cannot sell. Allegedly some 300,000 units are under consideration for demolition and for re-instating the land back to green fields.

    Much of Cyprus in particular the South West and Western coastal regions are now despoilt and carpeted in ugly concrete and poorly built holiday homes. Not attractive at all and to some areas to avoid. So very sad to what was a lovely unspoilt area some 40 years ago.

  • dimitri says:

    I have to say this is a good thing, supply is more than adequate, the developer ‘moda’ as they say locally is a thing of the past, it’s not in fashion now to say you are a developer….every Tom Dick and Harry with a shred of land and no experience of construction or fair commercial practices suddenly became a developer…..sad that so many people are out of work due to this downturn but eggs in more than one basket is what the island needs…tourism and developing won’t cut the ice anymore.

  • Frank says:

    Perhaps it is time that the authorities made the issue of a construction permit conditional on the demolition of one of the many unsold and/or abandoned projects which already litter Cyprus.

  • John Swift says:

    I think it will take some time before it picks up as many in the UK cannot sell even at knock down prices.
    We have control over a property sale in the UK, in 2006 valued it was valued at £186k and rising, the estate agents now think that a more realistic figure in the current UK climate is £124k.

  • The views expressed in readers' comments are not necessarily shared by the Cyprus Property News.

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