A building orgasm characterizes the Cypriot real estate market. The future picture of the construction industry is shown by the numbers of building permits issued for the construction of buildings.
For 2018, it seems that the market has warmed up and there is intense interest in the construction of single-family homes and apartment buildings. Cypriots seem to be turning to building houses - as they used to do - after a period of economic crisis.
Households choose to build a house or buy from housing estates, while land development entrepreneurs build apartment buildings as they see the intense interest of people in buying apartments.
Another feature of 2018 was the rise of major projects. Permits have been issued for projects approaching € 1 billion. What is being built in Cyprus and what will be built in the near future can be seen from the number and type of housing units. According to the statistical service, for the nine months of 2018 the number of housing units has increased by 32%.
Of the 3.277 building permits and 4.500 housing units issued in 2018, the majority of housing units were detached (2.169) and residential blocks (1.531). The number of duplexes (674) and mixed apartment buildings (126) is smaller.
For 2017, 3.034 building permits were issued - for 3.413 housing units. The majority of housing units again concerned detached houses (1.738). It is found that from last year until this year the houses are increased by 25%. At the same time, the residential apartment buildings record an increase of 59% as last year permits were issued for 964 residential units. Most of the money was given in 2018 to single-family homes (€ 547 million), followed by residential apartment buildings (€ 213,6 million).
Regarding the cities in which building permits were issued for residential units, Nicosia holds the lead after in the nine months of 2018 1.736 building permits were issued (1.124 in urban areas and 612 in rural areas) with a value of € 432 million. Next is Limassol with 1.394 building permits (801 in urban areas and 593 in rural areas) and a value of € 493 million. What is found is that although Nicosia has the highest number of building permits, Limassol absorbs the highest value as more expensive buildings are built.
In third place is Larnaca with 768 building permits for 659 housing units with a value of € 293 million. Paphos is in fourth place with 571 building permits for 478 housing units and a value of € 156 million. Last is free Famagusta with 233 building permits for 333 housing units and a value of € 176 million.
The largest increase during the period January - September 2018 was presented by the value of large projects, which increased by 77% and amounted to € 936 million compared to € 528 million in the corresponding period last year. Regarding non-residential buildings, for 2018 building permits were issued for 26 hotels with a value of € 203 million. Last year the numbers were much lower. 16 building permits were submitted for hotels worth € 14,7 million.
Source: Phileleftheros / Dimitra Landou