Surge in Cyprus’ Construction Sector as Building Permits Increase
The early months of 2024 have been marked by a notable construction sector growth in Cyprus, with a surge in the issuance of building permits by municipal authorities and district administration offices. A report from the Cyprus Statistical Service (Cystat) highlighted a significant uptick in construction activity, with 706 building permits issued in February, culminating in a total of 1,293 permits over the January-February period. This reflects a 13.1 per cent increase from the 1,143 permits issued during the same timeframe in the previous year.
The economic implications of this growth are substantial, with the value of permits in February reaching €248.9 million and totaling €470.19 million over two months, marking a 16.9 per cent year-on-year increase. The total area covered by these permits also saw a significant expansion to 202,552 square metres in February, contributing to a year-to-date total of 400,750 square metres—a 14.3 per cent rise from the previous year.
Diving into the details, the growth is not limited to one segment but is rather diversified across various types of construction projects. The residential segment experienced an 8.6 per cent rise in permits, with 859 residential building permits issued in comparison to 791 in the prior year. The area and value of residential projects increased by 9.9 per cent and 17.3 per cent respectively.
Similarly, the non-residential buildings sector, encompassing commercial and industrial projects, also displayed impressive growth. The number of permits for non-residential buildings climbed by 16.0 per cent, with the area of these projects expanding by an impressive 34.2 per cent and financial commitment increasing by 23.5 per cent.
Civil engineering projects, crucial for infrastructure development, saw a remarkable 48.3 per cent increase in permit issuance, despite a 24.3 per cent decrease in project value. Additionally, the sector related to road construction and plot division also experienced growth, with permits for road construction rising by 17.6 per cent.
The data from Cystat paints an optimistic picture for Cyprus’ construction industry, signaling strong construction sector growth and investment potential in both residential and non-residential buildings. This trend bodes well for the country’s economic development and suggests a robust demand for construction services in the year ahead.
