Building permits authorised for 907 new homes

Nigel Howarth
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Building permits authorised for 907 new homes

THE CONSTRUCTION of 696 new homes was authorised in January 2020 compared to the 548 authorised in January 2019 according to official statistics from the Cyprus Statistical Service; an increase of 27.0%.

The strong growth in the island’s construction sector continued in January 2020 with 538 building permits issued compared to 548 in January 2019. Although the number issued fell by 1.1%:

  • Their total value of these permits rose by 51.6% to reach €178.5 million.
  • Their total area rose by 55.0% to reach 165.8 thousand square metres compared to January 2019.
  • They provided for the construction of 696 new homes, an increase of 27.0% compared to 548 in January 2019.

During January 2020, the 538 building permits were authorised for:

  • Residential buildings – 395
  • Non-residential buildings – 73
  • Civil engineering projects – 18
  • Division of plots of land – 36
  • Road construction – 16

Building permits for new homes

The 395 residential permits provided for the construction of 696 new homes (dwellings). These comprised 216 single houses, an increase of 2.9% compared to the 210 authorised in January 2019, and 480 multiple housing units including apartments, semis, townhouses and other residential complexes; an increase of 42.0% compared to the 388 authorised in January 2019.

Building Permits Issued for the Construction of New Homes
(Number of Dwellings)

Month 2019 (Dwellings) 2020 (Dwellings) Increase/Decrease %age Change
January 548 696 148 27.0%
Totals 548 696 148 27.0%

Of those 696 new homes, 265 are destined for Limassol, 185 for Nicosia, 94 for Famagusta 78 for Larnaca and 74 for Paphos.

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

Foreign property sales take a big hit

Nigel Howarth
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1
Foreign property sales take a big hit

AS REPORTED last Friday, sales of property in Cyprus suffered a significant downturn in March as coronavirus fears hit house buyers. The Department of Lands & Surveys has recently released details of how each segment of the Cyprus real estate market has been affected.

Overseas property sales

Not surprisingly the greatest downturn in foreign sales occurred in Paphos, the most popular place for foreigners buying property, where sales fell by 65%. Foreign sales in Larnaca fell by 30%, while sales in Limassol, Famagusta and Nicosia fell by 29%, 14% and 6% respectively.

Total Overseas Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 34 30 16 32 45 24 21 13 23 20 21 26
2020 19 23 15
Famagusta 2019 21 29 29 38 42 18 47 17 24 17 35 38
2020 40 29 25
Larnaca 2019 60 43 71 67 90 60 67 40 35 79 53 74
2020 71 54 50
Limassol 2019 85 104 95 137 217 81 109 62 64 84 86 72
2020 82 89 67
Paphos 2019 157 180 157 155 229 136 176 112 139 126 169 151
2020 113 142 55
Totals 2019 357 386 368 429 623 319 420 244 285 326 364 361
2020 325 337 212

During the first quarter of 2020 the total number of foreign sales amounted to 575 compared with 750 over the first quarter of 2019; a decline of 21%.

Sales to EU nationals

Looking at the foreign sales figures in more detail, we can see that property sales to EU nationals fell by 47%, with sales in all districts falling (with the exception of Nicosia where they remained steady.)

Sales in Paphos fell by 59%, while sales in Larnaca fell 48%. Sales in Limassol and Famagusta fell by 45% and 29% respectively.

Foreign (EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 14 14 9 19 20 16 13 5 8 10 15 14
2020 9 12 9
Famagusta 2019 9 6 14 17 10 8 17 14 10 5 9 23
2020 6 14 10
Larnaca 2019 12 12 21 18 20 11 16 13 6 23 14 23
2020 21 13 11
Limassol 2019 16 25 20 21 28 26 27 17 25 30 26 25
2020 28 30 11
Paphos 2019 56 72 61 48 69 59 73 58 61 95 61 72
2020 40 60 25
Totals 2019 107 129 125 123 147 120 146 107 110 133 125 157
2020 104 129 66

During the first quarter of 2020 the total number of sales to EU citizens stood at 299 compared with 361 over the first quarter of 2019; a fall of 17%.

Sales to non-EU nationals

The number of sales to non-EU nationals fell by 40% in March compared to March 2019, with sales falling in all districts (with the exception of Famagusta where they remained steady.) The two most favoured areas of the island were hit hardest.

Paphos saw sales falling by 69%, followed by Limassol where they fell by 25%. Meanwhile sales in Larnaca and Nicosia fell 22% and 14% respectively.

Foreign (Non-EU) Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 20 17 7 13 25 8 8 8 15 10 6 12
2020 10 11 6
Famagusta 2019 12 23 15 21 32 10 30 3 14 12 26 15
2020 34 15 15
Larnaca 2019 48 31 50 49 70 49 51 27 29 56 39 51
2020 50 41 39
Limassol 2019 69 79 75 116 189 55 82 45 39 54 60 47
2020 54 59 56
Paphos 2019 101 108 96 107 160 77 103 54 78 61 108 79
2020 73 82 30
Totals 2019 250 257 243 306 476 199 274 137 175 193 239 204
2020 221 208 146

During the first quarter of 2020 the total number of sales to non-EU citizens stood at 575 compared with 750 over the first quarter of 2019; a fall of 23%.

But we must remember that property sales to non-EU nationals has been declining since the government introduced stricter criteria for foreign investors seeking Cypriot citizenship.

Domestic property sales

Sales to the domestic market, which accounted for 58% of all sales in March, fell by 25% compared to March 2019.

Although sales in Larnaca and Nicosia rose by 19% and 8% respectively – and sales in Famagusta remained steady, falls of 60% in Limassol and 7% in Paphos more than wiped out the gains.

Domestic Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 127 164 115 137 168 121 153 90 114 163 187 154
2020 178 155 124
Famagusta 2019 32 19 16 58 45 25 2 13 16 33 13 26
2020 10 18 16
Larnaca 2019 54 82 47 73 83 42 90 53 67 81 69 88
2020 76 64 56
Limassol 2019 166 152 192 291 329 138 177 134 176 144 210 212
2020 98 136 76
Paphos 2019 30 31 28 69 175 69 54 54 34 66 64 69
2020 55 29 26
Totals 2019 409 448 398 628 800 395 476 344 407 487 543 549
2020 417 402 298

During the first quarter of 2020 the total number of sales to Cypriot citizens stood at 1117 compared with 1255 over the first quarter of 2019; a fall of 11%.

Analysis of property sales since 2000

Cyprus Property Sale Contracts 2000 – 2020

Year Overseas Sales Domestic Sales Percentage
Overseas Sales		 Total
Sales
2000 450 12,214 3.6% 12,664
2001 1,207 12,849 8.6% 14,056
2002 2,548 14,111 15.3% 16,659
2003 3,981 15,294 20.7% 19,275
2004 5,384 11,947 31.1% 17,331
2005 6,485 10,106 39.1% 16,591
2006 8,355 8,598 49.3% 16,953
2007 11,281 9,964 53.1% 21,245
2008 6,636 8,031 45.2% 14,667
2009 1,761 6,409 21.6% 8,170
2010 2,030 6,568 23.6% 8,598
2011 1,652 5,366 23.5% 7,018
2012 1,476 4,793 23.5% 6,269
2013 1,017 2,750 27.0% 3,767
2014 1,193 3,334 26.4% 4,527
2015 1,349 3,603 27.2% 4,952
2016
 1,813 5,250 25.7% 7,063
2017
 2,406 6,328 27.5% 8,734
20181 4,367 4,875 47.3% 9,242
2019
 4,482 5,884 43.2% 10,366
2020 (Mar)
 874 1,117 43,9% 1,991
Totals
 70,747 159,391 30.7% 230,138

1 The Department of Lands & Surveys has advised that overseas sales in 2018 and subsequent year should not be compared to sales in previous years due to changes in the methodology used to classify ‘Aliens’ (foreigners).

The future

With a lockdown in place and blanket ban on passenger flights, property sales will continue to fall until the restrictive measures are eased. Then it will take several months for things to return to any semblance of normality.

One of Cyprus’ other main sources of foreign income is tourism, which is facing a disastrous year. Cyprus tour operators say they are facing the worst crisis in their history after waves of holiday cancellations due to the coronavirus outbreak.

The Cyprus Finance Minister Constantinos Petrides has said that the economy is heading for a recession and could contract by 5% after five years of growth.

Cyprus house price index falls

Nigel Howarth
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Cyprus house price index falls

THE CYPRUS Statistical Service (CYSTAT) has announced that prices for houses and apartments in Cyprus fell by an average by 3.7 per cent in the third quarter of 2019 compared to the previous quarter in its latest House Price Index (HPI).

The HPI also reports that residential property prices in Cyprus fell by 4.8 per cent on an annual basis.

According to the CYSTAT press release, the Cyprus House Price Index (HPI) “is a quarterly index which measures the change in the average prices of residential dwellings. It captures all types of residential properties, both new and existing. The land component of the residential property is included.

“The data source used for both, indices and weights, is the Department of Lands and Surveys, Ministry of Interior. The data cover all areas which are under the control of the government of the Republic of Cyprus.”

Year Quarter House Price Index (2015=100) Quarterly Change (Compared to the previous quarter) (%) Annual Change (Compared to the same quarter of the previous year) (%)
2010 Q1 114.37 -1.6 -6.6
Q2 112.79 -1.4 -6.9
Q3 112.39 -0.4 -5.7
Q4 112.05 -0.3 -3.6
2011 Q1 111.56 -0.4 -2.5
Q2 113.99 2.2 1.1
Q3 111.22 -2.4 -1.0
Q4 107.60 -3.2 -4.0
2012 Q1 106.40 -1.1 -4.6
Q2 106.02 -0.4 -7.0
Q3 110.14 3.9 -1.0
Q4 108.22 -1.7 0.6
2013 Q1 104.54 -3.4 -1.7
Q2 104.77 0.2 -1.2
Q3 103.05 -4.7 -9.3
Q4 100.78 0.9 -6.9
2014 Q1 98.08 -2.7 -6.2
Q2 103.55 5.6 -1.2
Q3 102.70 -0.8 2.8
Q4 101.56 -1.1 0.8
2015 Q1 97.52b
Q2 100.59 3.1
Q3 102.49 1.9
Q4 99.40 -3.0
2016 Q1 97.29 -2.1 -0.2
Q2 99.18 1.9 -1.4
Q3 101.87 2.7 -0.6
Q4 102.72 0.8 3.3
2017 Q1 99.64 -3.0 2.4
Q2 102.74 3.1 3.6
Q3 102.46 -0.3 0.6
Q4 105.24 2.7 2.4
2018 Q1 103.34 -1.8 3.7
Q2 103.98 0.6 1.2
Q3 103.30 -0.7 0.8
Q4 106.95 3.5 1.6
2019 Q1 107.78 0.8 4.4
Q2 112.27 4.2 8.0
Q3 105.69 -5.9 2.3
Q4 101.81 -3.7 -4.8

b There is a break in the series in the first quarter of 2015 due to redefinition of the model variables.

30-year Paphos marina saga continues

Bejay Browne
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30-year Paphos marina saga continues

THE MINISTRY of tourism’s announcement that the process to open a tender to secure the services of a specialised consultant to examine the proposal of establishing a combined marina and cruise ship docking facility in Kissonerga in Paphos, with no mention of an environmental impact study, is being queried by the Cyprus Greens.

“They have announced the development of infrastructure for the reception of cruise ships without the required environmental impact study,” a statement from the party said.

In addition, they highlighted the timing of the deputy minister to proceed with the process, noting it raises ‘logical’ questions.

“Certainly the timing of the announcement is no coincidence, as they (the ministry) are likely to believe that there will be no reaction. The economic crisis that is looming creates the conditions for the acceptance of any ‘development’ project. But they are mistaken,” the Greens noted.

Initially, the proposal to cater for cruise ships was earmarked for Kato Paphos harbour, however it was then suggested to combine the facility with a proposed marina in Kissonerga as the antiquities department said the development would have a negative impact on the archaeological environment of the area.

The design for a marina in Potima (Kissonerga) will accommodate 1,000 boats, which is a ‘huge’ scale for the area, and the development that will create several problems with its operation, they noted.

“It is time to change economic policies and not put all of the importance on tourism. It will take years for Cyprus to recover and perhaps numbers of visitors will never reach the millions again,” a spokesman for the Paphos Greens told the Cyprus Mail.

He added that the Greens were not enemies of progress in tourism but that matters needed to be reassessed.

However, Kissonerga community leader George Stylianou disagreed and said that the announcement was a move in the right direction but that any real progress was far off and that it was too early for an environmental impact study.

“At present, the authorities are considering the terms of the tender, it is just a first step. They will decide who will be employed as a consultant and they will decide if the idea of having a combined marina and cruise ship docking facility is viable or not.”

He added that they will take many factors into consideration, such as if the depth of the sea is suitable and the impact the development would have on the coastline.

“An environmental impact study is very important and has to be carried out, and I am sure will be part of the process at a later stage.”

He added that ways to minimise the impact of such a project on the environment were imperative.

Stylianou noted that cruise tourism – coronavirus notwithstanding – was a booming business, which could be an enormous added income for Cyprus and comes with added benefits.

“Cruise passengers that get a taste of Cyprus and like it will come and stay in hotels for longer, they may invest, purchase a house and so on,” he said.

The Greens added that EVE (Paphos chamber of commerce) and other Paphos bodies have expressed their satisfaction with the promotion of “growth”.

“As the Greens, we ask for more and immediate information regarding the data that led the ministry of tourism to this decision, for example, we want to know if there has been a previous environmental impact assessment study for the project in its new form. Let our environment finally stop being destroyed on the altar of so-called developments.”

Coronavirus fears hit Cyprus property sales

Nigel Howarth
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Coronavirus fears hit Cyprus property sales

PROPERTY sales in March fell by a third compared to March 2019 as coronavirus fears caused house buyers and sellers to reassess their plans.

On March 21 Cyprus airports went into a virtual lockdown with a blanket ban on all passenger flights for 14 days as part of measures to contain the spread of coronavirus. And just yesterday a government decree extended the ban for a further 14 days; according to the Cyprus Mail, air traffic in March fell by 91.6%.

What’s most notable in the figures published by the Department of Lands & Surveys is that the highest downturn in sales is in the districts most popular with overseas buyers, while in the least popular district (Nicosia) the number of property sales actually rose.

It seems certain that overseas property sales will have plummeted as a result of the ban on passenger flights.

With so many developers focussing on building properties for well-heeled investors wishing to obtain citizenship under the Cyprus government’s ‘Cyprus Investment Programme‘, they must be worried how long they will be able to stay in business.

And as Philip Beardwood Bsc Est Man FRICS wrote in an article a few years ago “If I were a bank, I think that I should be spending quite a lot of time in the toilet.”

March property sales

March saw a total of 510 property sale contracts deposited at Land Registry offices across the island compared to the 766 deposited in March last year; a fall of 33%.

Although sales in Nicosia, the capital, rose by 6%, they fell in the remaining four districts:

Hardest hit was Paphos, the most popular hot-spot with foreign investors, with sales falling by 56%.

The second most popular hot-spot with foreigners (Limassol) saw sales fall by 50%

Meanwhile sales in Larnaca and Famagusta fell by 10% and 9% respectively.

Total Property Sale Contracts – 2019/2020 Comparison

District Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Nicosia 2019 161 194 131 169 213 145 174 103 137 183 208 180
2020 197 178 139
Famagusta 2019 53 48 45 96 87 43 49 30 40 50 48 64
2020 50 47 41
Larnaca 2019 114 125 118 140 173 102 157 93 102 160 122 162
2020 147 118 106
Limassol 2019 251 256 287 428 546 219 286 196 240 228 296 284
2020 180 225 143
Paphos 2019 187 211 185 224 404 205 230 166 173 192 233 220
2020 168 171 81
Totals 2019 766 834 766 1057 1423 714 896 588 662 813 907 910
2020 742 739 510

In the first quarter of 2020, Limassol remains the most popular with those buying property followed by Nicosia (the capital), Paphos, Larnaca and Famagusta. The only two districts to record a rise in sales in the first quarter are Nicosia Larnaca.

Construction of new homes doubles

Nigel Howarth
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Construction of new homes doubles

THE CONSTRUCTION of 1,107 new homes was authorised in December 2018 compared to the 504 authorised in December 2018 according to official statistics from the Cyprus Statistical Service; an increase of 119.6%.

Th strong growth in the island’s construction sector continued in December 2019 with 647 building permits issued compared to 479 in December 2018.

The total value of these permits rose by 171.7% to reach €431.2 million, while their total area rose by 108.9% to reach 292.3 thousand square metres compared to December 2018.

The permits provided for the construction of 1,107 new homes, an increase of 119.6% compared to 504 in December 2018.

During December 2019, the 647 building permits were authorised for:

  • Residential buildings – 470
  • Non-residential buildings – 90
  • Civil engineering projects – 32
  • Division of plots of land – 37
  • Road construction – 18

Building permits for new homes

The 470 residential building permits provided for the construction of 1,107 new homes (dwellings). These comprised 356 single houses, an increase of 65.6% compared to the 215 authorised in December 2018, and 751 multiple housing units including apartments, semis, townhouses and other residential complexes; a massive 159.9% rise compared to the 289 authorised in December 2018.

Building Permits Issued for the Construction of New Homes
(Number of Dwellings)

Month 2018 (Dwellings) 2019 (Dwellings) Increase/Decrease %age Change
January 476 548 72 15.1%
February 431 576 145 33.6%
March 467 615 148 31.7%
April 418 742 324 77.5%
May 541 907 366 67.7%
June 506 812 306 60.5%
July 632 1,028 306 62.7%
August 453 525 72 15.9%
September 576 1,114 538 93.4%
October 617 744 127 20.6%
November 580 909 329 56.7%
December
 504
 1,107
 603
 119.6%
Totals 6,201 9,627 3,336 55.2%

Of those 1,107 new homes, 645 are destined for Limassol, 201 for Nicosia, 104 for Larnaca, 80 for Paphos and 77 for Famagusta.

Annual construction figures

A total of 7,218 building permits were authorised during 2019, compared to 6,408 in 2018.  Their total value increased by 81.4% and their total area by 49.8%. The number of building permits authorised for new homes rose by 55.2%.

The 5,197 residential building permits authorised in 2019 provided for the construction of 9,627 new homes; 4,108 in Limassol, 2,875 in Nicosia, 1,158 in Larnaca, 1,084 in Paphos and 402 in Famagusta.

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

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