New trends have emerged in the construction sector in Cyprus.
According to the Statistics Service's data on building permits issued in the first half of 2021, housing projects in the country are showing significant growth, while the number of commercial buildings is declining.
By the way, from January to June 2021, the total area of licensed projects for offices decreased by 36.9%, while for industrial buildings and warehouses increased by 20.1%. The total number of permits issued for the construction of commercial buildings decreased by 25.6%.
An increase in licenses for hotels (+ 91%) and entertainment facilities (+ 25.6%) was recorded.
As for housing projects, according to the Statistical Service, the total area of apartment buildings in the first half of 2021 increased by 27.8%, and of semi-detached houses - by 16.5%. In houses with more than two households, the growth was 31.7%, and in private houses - 35.9%.
The overall growth of residential and non-residential projects was recorded at around + 31%. Interestingly, it is largely associated with large projects.
Based on the above, the CEO of WiRE FS Pavlos Loizou stressed that it is still difficult to draw conclusions and make comparisons with the same period last year, since there was a lockdown at that time.
However, Loizou acknowledged the dynamic increase in the number of licenses compared to 2020 and 2019, especially in relation to residential real estate, as well as a significant increase in the number of apartment buildings, which, in his opinion, are mainly focused on the local market.
The CEO of WiRE FS noted the fact that the budget for buying real estate from people remains at the same level. Therefore, many people prefer to buy apartments in the center, more centrally, rather than houses in the periphery with higher purchase costs and higher maintenance costs, etc.
He also noted that low rates on deposits and loans, lack of opportunities for other investment options contribute to consumer demand. Compared to 2019, the number of residential and commercial development licenses increased by 7.4%. In the commercial sector, there is a decrease of 26.9%, and in the residential sector - by 17.6%.
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Photos: pixabay.com, DOM