The construction sector in Cyprus is experiencing a notable surge, with a 16.5% increase in the total value of building permits during the first half of 2023, according to a recent report by the Cyprus Statistical Service (Cystat). This encouraging growth also coincides with a 3% increase in the total area covered by these permits.
What’s particularly intriguing is that this growth is transpiring despite a 7.4% year-on-year decrease in the overall number of building permits issued.
Residential Units on the Rise
The increase in the number of residential units is mainly attributed to a significant uptick in residential multi-unit buildings, demonstrating a 17.6% increase compared to the previous year. In contrast, single-unit residences saw a decrease of 9.4%, duplexes plummeted by 20.9%, and mixed-use multi-unit buildings dropped by 45.2%.
Between January and June 2023, municipal authorities and provincial administrations granted 3,608 building permits, compared to 3,898 during the same period in 2022, marking a 7.4% decrease. However, the total value of these permits experienced a remarkable 16.5% increase, and the total area expanded by 3.0%.
Diverse Trends in Building Types
Looking closer at the data, the number of permits issued for residential buildings decreased by 8.2% compared to the first half of 2022. Additionally, permits for non-residential buildings dipped by 9%, and permits for civil engineering projects took a more substantial hit, decreasing by 21.1%.
On the bright side, land divisions increased by 3.7%, and road construction projects showed significant growth, surging by 30.1%.
In June alone, municipal authorities and provincial administrations issued 610 building permits, slightly down from the 626 permits issued in June of the previous year. The total value of these permits reached €251.1 million, a notable increase from the €220.05 million in June of the previous year. These permits are expected to result in the construction of 1,141 residential units, a marginal decrease from the 1,146 units projected in June 2022.
Across different districts, the number of building permits varied. Larnaca was the exception, with an increase in permits from 560 in the first half of 2022 to 612 in H1 2023. In contrast, Nicosia saw a decrease from 1,424 to 1,312, Limassol from 1,141 to 1,060, Paphos from 563 to 481, and Famagusta from 210 to 143 during the same period last year.
The Significance of Building Permits
The statistical service emphasises that building permits serve as a significant indicator for future activity in the construction sector. The recent surge in permit values and the increase in the total area covered indicate a promising outlook for Cyprus’s construction industry, despite the challenges posed by the decline in the number of permits.
As the construction sector continues to evolve, it will be interesting to see how these trends shape the island’s real estate and economic landscape in the months ahead.
Source Cyprus Mail