Construction activity up in 2004

The construction sector in 2004 continued to record a positive rate of growth, registering an upwards trend in its value added in real terms of 5,8% compared to 7,1% in 2003 and 5,5% in 2002. This is attributed mainly to the significant increase in the construction of residential buildings, Cyprus Statistical Service said in its “Construction and Housing Statistics, 2004” report.

Gross output at current market prices rose by 14,3% and reached CYP 1.074,5 mln compared to CYP 939,9 mln in 2003. Dwellings accounted for 50,7% of the gross output, non-residential buildings (shops, offices, factories, hotels, etc.) for 19,5%, civil engineering projects (roads, water supply and sewerage networks, telecommunications and electricity lines etc.) for 19,6% and repairs and maintenance for the remaining 10,2%.

Employment in the sector increased from 29.518 persons in 2003 to 29.970 persons in 2004 and accounted for 9,3% of the gainfully employed population.

Labour cost in construction increased by 4,0% compared to 5,8% in 2003. The price index of construction materials recorded a rise of 8,2% compared to an increase of 4,6% in 2003.

The number of new dwellings completed rose by 26,1% to 11.013 dwelling units compared to 8.734 in the previous year. By district, the number of new dwellings is distributed as follows: Lefkosia 3.367, Ammochostos 1,251, Larnaka 1,758, Lemesos 1.776 and Pafos 2.861.

The average area per dwelling completed in 2004 was 200 square metres for houses and 105 square metres for apartments, compared to 202 and 111 respectively in 2003.

The cost of construction per square metre (excluding the value of land) rose from CYP 370 in 2003 to CYP 389 in 2004 for houses and from CYP 345 to CYP 363 for apartments.