Cyprus

Overall construction activity

According to the Flash Estimate compiled by the Statistical Service, the GDP growth rate in real terms during the fourth quarter of 2021 is positive and it is estimated at 6.5% over the corresponding quarter of 2020. Based on seasonally and working day adjusted data, GDP growth rate in real terms is estimated at 6.0%.

The positive GDP growth rate is mainly attributed to the sectors: "Hotels and Restaurants", "Manufacturing"," Transport, Storage and Communication", "Wholesale and Retail Trade, Repair of Motor Vehicles", "Arts, Entertainment and Recreation", "Other Service Activities".

The Output Prices Index in Construction for the third quarter of 2021 reached 116.68 units (base year 2015=100.0), recording an increase of 2.0% over the second quarter of 2021. Compared to the same quarter of the previous year, the index increased by 6.4%. By type of project, an increase of 7.3% was observed for buildings and of 3.1% for civil engineering projects in the third quarter of 2021 compared to the corresponding quarter of 2020. 

The Price Index of Construction Materials (Average) in December 2021 reached 112.06 units (base year 2015=100.0) recording an increase of 11.09% in comparison to December 2020 (100.97 units).  

The Price Index of Construction Materials for December 2021 reached 119.66 units (base year 2015=100), recording an increase of 0.63% compared to the previous month. Compared to the same month of the previous year, the index recorded an increase of 17.10%. By main commodity category, increases were recorded in metallic products (30.17%), products of wood, insulation materials, chemicals and plastics (19.04%), electromechanical products (13.02%), mineral products (5.41%) and minerals (4.75%).

In December 2021, the Consumer Price Index decreased by 0.26 units and reached 105.10 units compared to 105.36 units in November 2021. In December 2021, the inflation increased by 4.8%.  For the period January-December 2021, the CPI increased by 2.5% compared to the corresponding period of the previous year. In January 2022, the Consumer Price Index decreased by 0.53 units and reached 104.57 units compared to 105.10 units in December 2021. In January 2022, the Consumer Price Index decreased by 0.53 units and reached 104.57 units compared to 105.10 units in December 2021. 

During the period January – November 2021, 7,386 building permits were issued compared to 6,375 in the corresponding period of the previous year, recording an increase of 15.9%. The total value of these permits decreased by -11.1% and the total area increased by 1.2%. 

These building permits comprise 752 big projects (with an area greater than 900m²) (compared to 595 in the same period of the previous year) and 6,634 small projects (compared to 5,780 in the same period of the previous year).

The number of dwelling units recorded an increase of 10.8%. By type of project, an increase of 7.3% was observed for buildings and of 3.1% for civil engineering projects in the third quarter of 2021 compared to the corresponding quarter of 2020.

During November 2021, the number of building permits authorized by the municipal authorities and the district administration offices during November 2021 stood at 715. The total value of these permits reached €197.7 million and the total area 194.6 thousand square meters. These building permits provide for the construction of 918 dwelling units. 

Housebuilding

During the period January – November 2021 the number of dwelling units recorded an increase of 10.8%. 

5,180 building permits were issued for residential buildings, providing for the construction of 9,466 dwelling units. Compared to 4,606 in the same period of the previous year, these building permits, recorded an increase of 12.5%.

The total area of these buildings reached 1,789,676 m² recording an increase of 4.7% compared to 1,704,663 m² in the same period of the previous year and the total value €1,828,895.- recording a decrease of 3.3% compared to €1,889,514.-  in the same period of the previous year. 

3,685 building permits were issued for single houses (compared to 3,303 in the same period of the previous year).The total area of these houses was 812,109 m² and the total value € 838,755- (compared to 727,179 m² and € 818,552.- accordingly, in the same period of the previous year)

During the period January – November 2021, 1,490 building permits were issued for buildings with two or more housing units (compared to 1,290 in the same period of the previous year), comprising 677 buildings with two housing units (compared to 634, in the same period of the previous year) 723 residential apartment blocks (compared to 577 in the same period of the previous year), 90 residential/commercial blocks  (compared to 79 in the same period of the previous year) and 5 residencies for communities ( compared to 13 in the same period of the previous year).