Cyprus building permits on the rise again

Building permits in Cyprus defied expectations again in October, rising in number, value and area terms for the second straight month, despite reports of a slowdown in demand.
The Statistical Service announced that the number of building permits authorized by the municipal authorities and the district administration offices during October 2008 stood at 844, compared with 797 in October 2006.
The total value of these permits was EUR 300.7 mln, compared with EUR 246.8 mln in the same month of 2007, while the total area was 374,647 square metres, compared with 318,083 in November 2007. These building permits provide for the construction of 2,088 dwelling units, up from 1,774 in the same month of 2007.
The picture for the period to date is still negative, however. During the period January -October 2008, 7,291 building permits were issued, a fall of 8.4% compared with the corresponding period of 2007.
The total value of these permits decreased by 0.1% and the total area by 2.4%.
Τhe number of dwelling units recorded a decrease of 6.3%.
Building permits constitute a leading indicator of future activity in the construction sector.
Meanwhile, inflation in construction materials prices, which is heavily influenced by oil, has begun to ease.
The Price Index of Construction Materials for November 2008 reached 154.69 (base year 2000=100,00), a fall of 3.9% over the previous month.
For the period January – November 2008, the index recorded an increase of 12.24% over the corresponding period of the previous year.