Cypriot construction sector is showing signs of recovery
According to the Cyprus Statistical Service (CYSTAT), there is increase in the number of building permits issued in January 2009; investment activity in the construction sector is showing signs of recovery as Building permits constitute a leading indicator of future activity in the construction sector.
The total area of projects that registered building permits in January increased by 11.6% to 278.9 thousand sq. meters compared to 249.8 thousand sq. meters in the corresponding month of 2008, when they had decreased by 5.3% compared to 2007. The value of building permits authorized rose for the eighth straight month, rising by 6.9% over January 2008 to EUR 234.1 mln, suggesting that developers are still making money and these building permits is for the construction of 1,585 dwelling units which is also up from 1,229 in January 2008, according to financialmirror.com reports.
The area of the projects in Famagusta registered an increase of 41.6% to 29.3 thousand square meters from 20.7 thousand square meters. In Paphos, 30.8% to 53.7 thousand sq. meters from 41 thousand sq. meters in January 2008, while in the commercial port of Limassol it is 6%, in Larnaca of 2.9% and in Nicosia of 3.8%.
In related news, the Bank of Cyprus is offering attractively priced loans of up to EUR 1.5 billion earmarked for housing, business and the hotel/construction industries. Vassos Shiarly, The Bank of Cyprus Group General Manager Domestic Banking has stated that € 800 million are geared to soft loans for housing and businesses wishing to own their own premises.
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