CYPRUS: Big construction projects push building permit values to EUR 1.55 bln

The value of building permits spiked by an annual 46% to EUR 1.55 bln in the first nine months to September owing to the rise in large commercial and housing projects, according to official data.

The number of building permits issued in the nine-month period of January – September 2018 increased 9.38% to 4,702 compared with 4,281 permits issued in the same period last year.

A surge in construction is mainly down to new hotels – fuelled by a booming tourism sector – and commercial properties being built while apartment blocks are dominant in the housing sector.

Large housing projects recorded the biggest increase with their estimated value spiking by 78% to EUR 0.97 bln from EUR 0.53 bln in 2017.

The number of permits for large projects increased 61.4% to 394 while the land area covered by these permits rose by 50% to 681,128 sqm.

Building permits for small projects between January – September improved 6.71% to 4,308 from 4,037 in 2017.

For September alone, the number of building permits issued by local authorities stood at 588.

The total value of these permits reached EUR 160.2 mln covering a total area of 155,200 sqm. These building permits provide for the construction of 576 housing units.

Over the nine months, the most expensive projects were in Nicosia (EUR 300 mln) and Limassol (EUR 345 mln) with both districts absorbing the lion’s share of the building permits issued.

Building permits constitute a leading indicator of future activity in the construction sector.