Construction in 2005 reached CYP 1.2 bln

Property sizes are shrinking

 

New figures for the construction sector in 2005 showed that gross output in the sector rose by 12.8% in current price terms to reach CYP 1,232 mln (CYP 1.2 bln) in 2005,  up from CYP 1,074 mln in 2004. Output in construction thus accounted for 15.7% of GDP in 2005, although gross value added in construction accounted for around 7.5% of GDP.

In real (price-adjusted) terms, the sector rose by 6.1%, almost matching the growth rate of 6.4% recorded in 2004.

Full details are available in the Statistical Service’s “Construction and Housing Statistics, 2005” report.

The report contains detailed data on the construction sector, pertaining, inter alia, to output, capital formation, inputs, new dwellings completed, building permits authorized, labour cost index and price indices of construction materials.

Growth in the construction sector is attributed mainly to the significant increase in the construction of residential buildings.

 

Property size is shrinking

 

The figures show the impact of higher prices, as property sizes shrink. The average area per dwelling completed in 2005 was 186 square metres for houses and 114 square metres for apartments, compared to 200 and 105 respectively in 2004.

At the same time, the cost of construction per square metre (excluding the value of land) rose from CYP 389 in 2004 to CYP 416 in 2005 for houses and from CYP 363 to CYP 384 for apartments.

New residential buildings accounted for 53.8% of gross output, new non-residential buildings (shops, offices, factories, hotels, etc.) for 19.1%, civil engineering projects (roads, water supply and sewerage networks, telecommunications and electricity lines etc.) for 17.0% and repairs and maintenance for the remaining 10.1%.

Employment in the sector increased from 31,140 persons in 2004 to 32,200 persons in 2005 and accounted for 9.4% of the gainfully employed population.

Labour costs in construction increased by 5.2% compared to 4.0% in 2004. The price index of construction materials recorded a rise of 5.5% compared to an increase of 8.2% in 2004.

The number of new dwellings completed rose by 49.1% to 16,416 dwelling units compared to 11,013 in the previous year. By district, the number of new dwellings is distributed as follows: Lefkosia (Nicosia) 4,280, Ammochostos (Free Famagusta) 1,562, Larnaka 2,968, Lemesos (Limassol) 2,843 and Pafos 4,763.

. The report is available for sale from the Government Printing Office in Nicosia at the price of CYP 6.00 per copy. An electronic version of the report can also be downloaded free of charge from the web site of the Statistical Service under the section Publications (Category: Annual Publications, Theme: Industry,Construction, Subtheme: Construction).