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Construction sector in the doldrums

With the number of building permits issued in Cyprus continuing to fall in August, the island’s construction sector remains firmly in the doldrums with no signs of a recovery in the foreseeable future.

THE NUMBER of building permits authorised in August 2014 stood at 298 compared with the 351 authorised in August last year; a fall of 15%, according to figures released by the Cyprus Statistical Service.

Compared to August 2013, the total area of these permits fell by 13% to 47,060 square metres from 53,809, while their value fell 13% to €48.5 million from €55.9 million.

During August, building permits were issued for:

  • Residential buildings – 206 permits
  • Non-residential buildings – 61 permits
  • Civil engineering projects – 11 permits
  • Division of plots of land – 15 permits
  • Road construction – 5 permits

New home construction

The 206 residential building permits authorised in August provided for the construction of 227 dwelling units comprising 136 single houses and 91 multiple housing units (such as apartments, semis, townhouses and other residential complexes).

This is a drop of 2% compared with August 2013 when building permits were issued for the construction of 232 new homes.

Cyprus construction sector in the doldrums

Year to date performance

During the first eight months of 2014, a total of 3,307 building permits were authorised; a fall of 7% compared to the 3,571 permits authorised during the same period last year. The total value of these permits has fallen by 30%, while their total area has fallen 29%.

According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.

Readers' comments

Comments on this article are no longer being accepted.

  • Nick says:

    This topic (that crops up monthly) tells it like it is. Nonetheless, I do not expect too many comments because by now we all know the reasons for the property market collapse. It is also patently clear to everyone what is required to resuscitate it. Unfortunately, our cry is a voice in the wilderness.

  • Chris Elliott says:

    Peter fully agree with your comments but most of the so called Devlopers were money speculators with most of them not competant just cashing in on a property market boom building sub standard properties that do not meet any building standards

  • Peter Davis says:

    The developers could have built quality homes, controlled planning applications, and treated their customers with respect. They had a goldmine that needed care.

    But this thinking is totally alien to them.

    They decided instead to milk the system by producing inferior concrete buildings, stacked across the Island and treat their customers with avarice and greed.

    Blame the Banks, Government and Lawyers, but it was the developers who ran the scam.

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


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