Data on building permits released by the Statistical Service CYSTAT indicate that the overall construction sector is buoyant, although there are sharp differences depending on the area.
The total number of building permits authorised in May reached 832, a rise of 21.9% compared with May 2005. The value of permits rose by 29.4% to CYP 145.3 mln and the total area rose by 31.5% to 380.1 thousand square metres.
These building permits provide for the construction of 2,090 dwelling units.
This continues a strong trend. During the period January - May 2006, the number of building permits issued rose by 11.7% year on year to 4,155.
The total value increased by 8.8% and the total area by 5.9%. Τhe number of dwelling units recorded a rise of 3.3%.
Free Famagusta up by 64.5%
A breakdown of figures by region shows that the performance of each district differs markedly.
The number of individual dwelling units authorised for Free Famagusta (Ammochostos) rose by a staggering 64.5% to 847 in January-May. Since the number of actual permits rose by a much lower 16.3%, it suggests that there is strong demand for the construction of apartment blocks.
At the opposite end of the spectrum, the number of individual dwelling units authorised for the capital Nicosia dropped by 17.5%. However, a strong rise in the number of permits issued for rural areas (up 41.3%) suggests that the latest fashion is no longer to have a brand new apartment but to have brand new house, even if you can only afford one out of town.
As far as the number of building permits is concerned, the small rise was recorded in Paphos on the west coast of Cyprus, where they rose by only 3.6% year on year.
This indicates a more mature market: Paphos was the first area to benefit from the demand for holiday homes and is also the most expensive.
Source: Financial Mirror
