Photo: Martha de Jong-Lantink
Construction of Cypriot homes continues to climb, and experts attribute part of that recovery to Chinese investment.
According to official figures released by the Cyprus Statistical Service, the amount of permits for new homes rose by 43.8 percent in April 2017 compared to last year.
In April 2016 201 new homes were issued with permits, however in April 2017 there were 289 new homes built with 295 residential permits issued. New home construction consisted of 173 single houses and 176 multiple housing units.
The Cyprus Statistical Service have cited the issuing of building permits as a key indicator of future activity in the construction sector. In 2017 the number of new homes that have received building permits in January of this year through to April, has increased by 37.7%.
How China helped Cypriot construction climb
24th February 2017
Cyprus’ housing market continues to show positive signs of recovery, with climbing levels of construction at the centre of the island’s turnaround. One of the biggest factors behind the sector’s recovery may be China, according to experts.
Construction of Cypriot homes jumped 55 per cent in 2016, according to official statistics. The Federation of Associations of Building Contractors Cyprus says momentum is continuing in 2017, with activity reportedly up 23 per cent in the first two months of the year, compared to the same period in 2016.
The federation says that one factor is the cut of 50 per cent in transfer fees introduced last year, with reducing VAT on the purchase of houses from 19 per cent to 5 per cent could also boost construction further. Another driver, though, is a rising level of investment from Chinese buyers.
The Paphos market jumped 40 per cent year-on-year in 2016, for example, and Kyriakos Talatinis, president of Cyprus Association of Valuers and Property Consultants, attributes that to the surge in Chinese investment in the area.
Indeed, developers from the region were the first to visit China to attract customers after the island’s billion-euro bailout in 2013.
“As early as 2013, Chinese people started buying property in Paphos,” he told Xinhua.
In 2016, contracts for transactions logged with the land registry jumped 43 per cent, notes the Chinese agency. However, not all regions benefitted to the same extent.
“Land development in Limassol went up by 59 per cent, and by 40 per cent in Paphos,” adds Talatinis. “Demand came mostly from foreign purchasers and especially in Paphos from Chinese buyers.”
Land registry department data shows that 295 international sales out of a total 958 in 2016 were for properties in Paphos. Given the size of Cyprus, Talatinis argues that even half of that would still have made a significant impact upon the housing market and economy. The market is still only gradually recovering, though, with contracts hitting a total of 16,000 across 2008, when the market was at its peak. Today, prices are a long way from 2008 levels, although seaside homes in Paphos and Limassol are notably higher than other areas, thanks to foreign demand.
Cyprus new homes jump 55pc in 2016
24th February 2017
Construction of Cypriot homes continues to climb, with the number of building permits jumping 55 per cent in 2016.
The latest figures from the Cyprus Statistical Service shows that the number of building permits granted in December 2016 totaled 454, up from 433 in December 2015. This, however, includes non-residential buildings, civil engineering projects and more. Residential building permits totalled 325 – 213 single houses and 184 multiple housing units – which was 55.7 per cent higher than the end of 2015.
Building permits constitute a leading indicator of future activity in the construction sector, painting a positive picture for the island’s recovering housing market in the coming year.
Construction climbs in Cyprus
30th September 2016
Construction is climbing in Cyprus, driven by rising demand.
Imperio, a luxury developer based in Limassol, has announced a new residential project this autumn, securing a 1,500 square metre site in Potamos Yermasoyias, 400 metres from the coast. Work on the three-bedroom properties that make up the Amalfi Residences will present affordable choices for those looking to move to the area, but also boost the local economy by providing work.
Indeed, the company tells OPP.Today that the conditions are improving for property development on the island.
“The Cyprus economy is one of the best performing in the EU, the banks are fully recapitalised with very good capital indicators, and the country risk is low. International property investors now understand that the prospects of investing in Cyprus are bright,” Director Yiannis Misirlis tells the site.
“Additionally, the various tax incentives (for example, no CGT, no property tax, no transfer fees) given by the Anastasiades Government add a handful of advantages to property investment in Cyprus when compared to a competing destination.”
Demand is now rising by an average of 25 per cent year, led by buyers from Russia, the Middle East and China, which is fuelling construction activity.
“We’re always looking for and receiving potential opportunities for developments and the fact that we’re in a position to take on a brand new site at this stage is a reflection on the stability of our company,” adds Misirlis.
“Enquiry levels and demand across Limassol are increasing as consumer confidence begin to grow, so we’re aiming to meet that need with a wide choice of quality new homes.”
The company is also studying another site, which is expected to become the basis of another new development, to be announced shortly.
Building permits edge up in Cyprus
15th August 2016
Building permits edged up in Cyprus this spring, joining a string of positive indicators for the future of the island’s housing market.
440 building permits were authorised in May 2016, up 1.4 per cent from 434 in May 2015, according to figures from the Cyprus Statistical Service. 301 of those permits were for residential buildings (non-residential buildings accounted for 94, ahead of civil engineering projects, land plots and road construction).
Those permits were for the construction of 188 single houses and 90 multi-unit properties – a total of 278, up 0.7 per cent year-on-year. Over the first five months of 2016, permits for both residential and non-residential properties jumped 6 per cent (to 2,156).
The total area and value have fallen in the last year by 5.3 per cent to 364,000 square meres and by 8.4 per cent to €400.7 million respectively. The positive growth, though, arrives at a time when the future appears brighter for Cyprus than it has in recent years. Recent data from the Department of Lands and Surveys found that sales had risen for the third month in a row in June, with sales to foreign buyers up 49 per cent year-on-year.
Building permits rise in Cyprus
15th December 2015
Building permits are rising in Cyprus, according to new figures.
Data from the Cyprus Statistical Service shows that building permits for new homes have risen in Septemmber 2015 compared to the same month in 2014.
The number of overall permits remained static, while the total area of permits fell 1 per cent to 69,398 square metres from 70,103, but their value rose 0.1 per cent to €78.5 million from €77.9 million. Residential buildings, meanwhile, recorded growth of 1.9 per cent.
The figures are the latest in a wave of positive indicators for the Cypriot property market. New figures from the Department of Lands Surveys show the total number of sales on the island in November 2015 was 21 per cent up year-on-year, while sales to foreign buyers rose almost 50 per cent.
The recovery is a long-term struggle, though: in the first nine months of 2015, the number of total building permits authorised for both residential and non-residential projects fell 0.6 per cent compared to the same period of 2014. Their value, though, has risen by 20.6 per cent to €764.1 million and their area rose by 14.8 per cent to 658,427 square metres.
For residential property, between January and September 2015, the number of building permits issued has risen 15.1 per cent compared to the same period last year.