Building permits resume decline in June

But values still rising

The number of building permits authorised resumed their decline in June, falling by 5.3% compared with June 2004, to reach 754 permits. This is the third month in a row in which the number of permits has not risen: in April, they fell by 1.5% year on year and in May they stagnated.

The total decline recorded for the second quarter was 2.4%, while for the January-June period the number of building permits registered an increase of 3.4% to 4,475.

However, looking at the value of building permits, it is clear that the picture is not so glum for the developers as might first appear, since the value of building permits authorised has risen year on year consistently throughout 2005, although the pace of growth has slowed.

In the first quarter, the value of building permits rose by 23.8% year on year, whereas it rose by just 5.8% in the second quarter and by 4.4% in the month of June. For the January-June period as a whole, the value rose by 14.4% to CYP 670.9 mln.

The square-metre area has also risen, by 17.8% in the first quarter and 6.0% in the second, brining the total for Jan-June to 1.54 mln–a rise of 11.8% in the first half.

The fact that the number of dwelling units rose in January-June by 29% suggests that developers are concentrating on apartment blocks, rather than individual houses or villas.

Fiona Mullen