Nicosia demand driving house building recovery

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A significant decline in building permits was recorded in the first six months due to the restrictive coronavirus measures but data for June shows signs of an economic upswing driven by demand in Nicosia.

The number of building permits authorised by local authorities in June reached 724, up from 708 issued in the previous month and 573 issued in June 2019.

In June most COVID-19 containment measures were lifted while constriction was one of the sectors to return after the March lockdown.

The total value of building permits reached €270 mln, an increase of 29.2% from June 2019.

The total area covered was 225,100 square metres, up by 19% compared to the same period last year.

These building permits provide for the construction of 976 housing units, an increase of 20% compared to June 2019.

During the six months January to June 2020, 3,153 building permits were issued against 3,393 in the same period last year.

The total value of these permits decreased by 34.8% and the total area by 18% while the number of homes recorded a drop of 0.7%.

The largest dip in building permits for the first half of the year was recorded in Limassol where they decreased to 950 from 1,025 in the same period of 2019 while their total value also dropped by 66.5%.

In Larnaca, building permits decreased to 405 from 552 in 2019, their total value declined by 19.7%.

In Paphos, building permits fell to 424 from 491, their total value decreased by 32.7%.

For Famagusta, building permits issued dipped to 143 compared to 151 in 2019, however, the total value slumped by 88.6%.

Nicosia was the only district where building permits increased, rising to 1,231 from 1,174 last year and their total value climbed by 14.2%.

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