ACCORDING to figures released by CySTAT, the number of building permits issued last December fell to 560 compared with the 733 issued in December 2010; a fall of 24%.
In December, building permits were issued for:
- Residential buildings – 398 permits
- Non-residential buildings – 99 permits
- Civil engineering projects – 23 permits
- Division of plots of land – 30 permits
- Road construction – 10 permits
The total value of these permits reached €189.3 million and their total area 213.9 thousand square metres.
During 2011, 7,506 building permits were issued; a decrease of 14.5% compared with 2010 and their total value slumped 21.8% to €2,065.1 million from €2,639.5 million in 2010.
Last December, 398 permits were approved for the construction of 573 residential properties comprising 224 single houses and 349 multiple housing units (such as apartments and other residential complexes).
This is a fall of 37.4% compared with December 2010 when building permits were issued for the construction of 916 dwellings.
During 2011, building permits were issued for the construction of 8,839 residential properties compared with 14,312 during 2010; a drop of 5,473 (-38.2%)
According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.
The last ten years
The number of residential properties being built has now reached its lowest level since 2002. The latest figures from CySTAT show that they have fallen by 57% since the height of the property boom in 2007.
There was some good news for the Cyprus property market last month. The number of properties sold increased for the first time in 18 months following the introduction of tax incentives by the government designed to stimulate the Island’s moribund property market.
Whether these increased sales will help revive the construction sector should become evident as we move forward in the year.