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Construction sector collapse

The construction sector in Cyprus recorded the biggest drop in production year-on-year in the European Union member states according to a report published by Eurostat this morning.

Cyprus onstruction sector collapse PRODUCTION in the Cyprus construction sector fell 18.8% in the fourth quarter of 2014 compared to Q4 2013, the biggest fall in the European Union according to a Eurostat news release published this morning.

This followed a 22.1% fall in the previous quarter.

Cyprus was followed by Slovakia, where production in the construction sector fell 6.3%, France (- 5.9%) and Italy (-5.6%).

The best performing states were Lithuania, where production rose by 13.5%, Sweden (+13.2%), Greece (+11.7%) and the Netherlands (+10.1%).

Overall in the eurozone, production in construction fell 0.7% in the fourth quarter, while in the EU it increased 0.7% compared to the fourth quarter of 2013.

Further reading

Eurostat newsrelease 70/2015 – 20 April 2015

Readers' comments

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  • ibrahim says:

    The situation will only get better if a major clean up of the system takes place but cleaning up will never be performed by the same people who govern it.

    Having a bad name is much worse than losing your money, you can make up your loss if you have a good name. Hopefully some people will understand this basic fact of life.

  • Steve says:

    It should be a cause for concern that the construction and development industry has contracted so severely and continues to do so. along with it is the contraction of service infrastructure that affects new building and also those of us already owning property here. That means building materials, furnishing, DIY, maintenance, renovation, alterations and everything else that is needed when property is bought and sold, to the point where only limited property development becomes possible. Then there is the increased risk that developers will go bust. Sadly, none of this will fix the title deeds mess.

    Part of the problem of falling sales is that while there is money around, the banks are not lending enough – to builders or developers or to people who want to buy new property, particularly off-plan, or to business in general. Allied to that, the valuations of properties and new development prices still seem so out of line with reality that the buyers are put off. In fact, these issues may have as much negative effect as- or more than – the title deeds issue.

  • Costas Apacket says:

    If they think it’s bad now, just wait until they start repossessing fully paid for properties due to hidden secondary Developer loans.

    The guano and fan will meet each other in full swing.

  • Hector says:

    I have to agree with Steve R. This does boil down to TRUST. Trust in the law giving you protection; trust in lawyers to protect your interests and a system of redress if they don’t; trust in the government to ensure the laws are there to protect innocent purchasers; trust in the courts and legal system to protect the innocent and punish fraudsters; trust in the local administrative procedures i.e. land registry to protect your property interests.

    Trust in the developers to construct good quality properties and not double selling or taking out loans/mortgages on land/property already sold to their customers; trust in the police to investigate fraud and corruption and bring offenders to justice; trust in the politicians to root out corruption and poor service amongst their own and government employees.

    I think that sums it up. Can anyone say that there is TRUST in any of the above?

  • BarbG says:

    At least they’re now getting one thing right. Why build houses when no-one in their right mind would be daft enough to buy one?

  • Steve R says:

    We were all warned that this would happen in Cyprus but none of the hierarchy would listen and are still not listening. It’s not about money, there is plenty of money about. It’s not about the location. Cyprus is one of the most beautiful islands in the Med.

    It’s all down to Title Deeds and trusting the lawyers, developers and banks. The have a really bad name within the eurozone and in fact around the world. The sad thing is they are doing nothing to bring trust back to the market. Every year this goes on it will take 3 years for the property/building trade to recover. Do something about it or lose this lovely island.

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

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