THE CYPRUS construction sector continued to decline in June with the number building permits issued during the month standing at 557 compared with the 696 issued in June last year; a decrease of 20%, according to the latest figures released by the Cyprus Statistical Service.
Compared with June 2011 the total area of these building permits fell from 173,957 square metres to 124,830 square metres (-28%) and their value fell from €163 million to €136 million (-17%).
During May, building permits were issued for:
- Residential buildings – 352 permits
- Non-residential buildings – 100 permits
- Civil engineering projects – 74 permits
- Division of plots of land – 26 permits
- Road construction – 5 permit
During the first half of 2012, 3,671 building permits were issued; a decrease of 21% compared to the 4,619 permits issued during the same period last year. Their total value fell from €1.082 million to €777,712 (-28%) and their total area fell from 1,168,184 square metres to 782,418 square metres (-33%).
New home construction
The 352 residential building permits that were approved in May provided for the construction of 523 new homes comprising 227 single houses and 296 multiple housing units (such as apartments and other residential complexes).
This is a fall of 21% compared with June 2011 when building permits were issued for the construction of 662 new homes.
During the first half of 2012, the number of new homes for which permits have been issued has dropped 39.4% compared with the first half of last year. Their total value fell from €797.7 million to €552.6 million (-31%) and their total area fell from 900,227 square metres to 595,354 square metres (-34%).
According to the Cyprus Statistical Service, building permits constitute a leading indicator of future activity in the construction sector.
Meanwhile, Eurostat figures released last Friday show that the construction sector’s contribution to the island’s GDP shrank by €54 million (-19.7%) on an annual basis in the second quarter of 2012.