Value of con­struc­tion ac­tiv­ity spiked 22% in 2016 to EUR 2.14 bln

Financial Mirror (Cyprus) - - PROPERTY -

Ac­cord­ing to the ‘Con­struc­tion and Hous­ing Statis­tics 2016’ sur­vey re­leased Thurs­day, the pro­duc­tion value of Cyprus’ build­ing sec­tor in­creased 22.2% to EUR 2.146 bln from EUR 1.756 bln the year be­fore. The value added at cur­rent prices shows an in­crease of 23.5%.

More new and big­ger homes were built – with Li­mas­sol lead­ing the way - while the num­ber of job­less in the sec­tor also fell – many ob­servers would at­tribute the up­turn to the pass­port for in­vest­ment scheme kick­ing in.

The scheme en­cour­ages for­eign in­vestors to buy new prop­er­ties as a path­way to cit­i­zen­ship.

Cyprus con­struc­tion ac­tiv­ity regis­tered a rise of 20.7% com­pared to a mar­ginal 0.2% up­turn in 2015, based on the pro­duc­tion in­dex of the sec­tor.

The share of new con­struc­tion of res­i­den­tial build­ings is 50.8% of the to­tal, non-res­i­den­tial build­ings is 27.7%, while civil en­gi­neer­ing projects ac­counted for 21.5%.

For 2015 the fig­ures were 48.9% res­i­den­tial, 27.3% non-res­i­den­tial and 23.7% civil en­gi­neer­ing projects.

The num­ber of full-time em­ploy­ees in the sec­tor in­creased from 19,242 to 21,130 per­sons in 2016. Those regis­tered as un­em­ployed de­creased from 5,295 to 4,094.

The price in­dex of con­struc­tion ma­te­ri­als de­creased 1.7%, fol­low­ing on from a 2.7% de­cline in 2015.

The num­ber of new homes com­pleted in­creased 7.5% to 2,570 hous­ing units from 2,390.

By dis­trict, more new homes were built in Li­mas­sol (791) fol­lowed by Ni­cosia (745), Lar­naca (469), Paphos (395) and Fa­m­a­gusta (170).

The av­er­age area per unit built was big­ger at 239 sqm for houses and 150 sqm for apart­ments, com­pared to 216 and 134 re­spec­tively in 2015.

The cost of con­struc­tion per square me­tre (ex­clud­ing the value of land) in­creased from EUR 1,009 in 2015 to EUR 1,018 for houses and from EUR 839.6 in 2015 to EUR 902.3 for apart­ments.

The hous­ing stock at the end of 2016 amounted to 449,000 dwelling units, of which 60.9% were in ur­ban ar­eas.

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