Construction Sector Review for 2008
According to the latest figures from the Statistical Service (18/12/2008) during the period January - October 2008, 7291 building permits were issued, a decrease of 8.4% over the corresponding period of 2007 (7963). The total area covered by permits issued for the period January - October 2008 stood at 2,978,717 m2 compared to 3,052,318 m2 during the corresponding period of 2007, a decrease of 2.4%. The total value of building permits issued during the January - October 2008 period is €2.343.718 (000's) and display a decline of 0.1% in relation to the value of permits for the corresponding period of 2007 €2.346.455 (000's). Also, the number of permits for dwelling units showed a decrease of 6.3% (from 17,154 in January - October 2007 to 16,073 in the corresponding period of 2008).
From 7291 building permits issued between January - October 2008, 5,657 were residential buildings (10.7% reduction), 860 are non-residential buildings (down 4.7%), 238 are civil engineering projects (up 12.8%), division of land 488 (up 9.2%) and 48 are road constructions (down 22.6%). Of all the licenses, 944 were major projects (with area greater than 900 m) and 6347 small projects. The 2448 building permits were for the province of Nicosia, 280 for Famagusta, 1181 for the Larnaca district, Limassol 1923 and 1459 for the district of Paphos (building permit numbers declined in all cities compared to the corresponding period of 2007). Per province, the number of new dwellings (residential units) for the period January - October 2008 is: 4147 Nicosia, Famagusta 1123, Larnaca 3046, Limassol 3572 and Paphos 4185. We would like to mention that building permits constitute a leading indicator of future activity in the construction sector.
Unlike the decline in building permits, according to preliminary data (23/10/2008) from the Statistical Office, the Production Index in Construction for the second quarter of 2008 reached 154.1 units recording an increase of 4.1% over the Second quarter of 2007 (148.03). In sub-indicators a rise 1.8% occurred in buildings and 15.3% rise in civil engineering projects.
The Producer Price Index in Construction for the second quarter of 2008 reached 188.0 units recording an increase of 2.3% over the first quarter of 2008. Compared with the corresponding quarter last year, the index rose 4.9%. In sub-indicators a rise 6.1% occurred in buildings and a rise 1.6% in civil engineering.
The Construction Materials Price Index for October 2008 stood at 160.98 points and dropped 0.96% over the previous month. For the period January - October 2008 the index increased by 12.57% over the same period last year. In comparing the indicators by type of building material we have the following changes:
• wood, stone and construction materials price index increase 10.74%
• petroleum products price index increase 37.93%
• Chemicals and related products price index increase 3.63%
• Industrial products price index increase 13.54%
• Electrical goods price index increase 0.73% and
• Other types price index increase 1.87%
The Index of Prices of Basic Construction Materials for the period January - October 2008 stood at 208.02 points compared with 172.58 in the corresponding period of 2007, an increase of 20.54%. More precisely, the price indices had the following changes per basic material of construction:
• crushed sand (5 - 0 mm) for concrete, 13.05% increase
• crushed rock (20 - 10 mm) for concrete 13.26% increase
• Mixture of gravel and sand (40 - 0 mm) Cat. For tarmac 13.93% increase
• Bricks (300 x 200 x 100 mm) placed on pallets 10.07% increase
• Building grade Iron, high-strength, diameter of 12 mm or more EU origin, 36.86% increase
• Concrete, Class C30, increase 7.08%
• gray Portland cement normal (in bags) no change,
• Bituminous Mixtures 37.93% increase
• Fuel (diesel) 26.79% increase
• Construction grade Steel 15.86% increase.
Based on the results of the Labor Force Survey, conducted in accordance with European Regulation for the second quarter of 2008, the number of workers in Cyprus amounted to 384,028 persons (212,712 men and 171,316 women) and the number of unemployed people to 12,448 ( 5580 men and 6868 women). Employment in the manufacturing sector for 2008 is estimated at 42,928 people (11.5% of total).
The employment rate for people aged 15-64 was 71.1% (males 79.3% and females 63.3%) a slight increase from the previous quarter and remained at similar levels to the same quarter in 2007.
The unemployment rate was 3.1% of the labor force (males 2,6% and females 3.9%) while during the 1st quarter of 2008 the rate was 4.6% (males 4.2% and females 5.0 %) and the corresponding quarter of 2007 the rate was 3.4% (males 3.2% and females 3.6%). Also the unemployment rate for youth aged 15-24 was 7.1% compared to 9.1% in the corresponding quarter of 2007.
Based on the information held at the District Employment Offices registered unemployed in the construction sector for the period January-November 2008 amounted to 868 in average monthly average. For the month of November 2008 the registered unemployment in construction was 1070.
Review of the Construction Sector for 2007
According to the latest revised data of the Statistic Service, in 2007, the construction sector displayed positive growth, with a growth in gross added value in real terms of 5.0% in 2007 compared with 6% in 2006.
In particular the construction sector the GDP in 2007 is estimated at £ 675,4 million at current prices compared with £ 629,7 million in 2006. Gross domestic fixed investment at current prices rose by 10.6% reaching to £ 1.337,9 million compared to £ 1.214 million in 2006. Out of these, 59% involved new buildings for residential purposes, 20.7% non-residential buildings (shops, offices, factories, hotels, etc.), 20.3% infrastructure (roads, water supply and sanitation , telecommunications and electricity lines and repairs & repairs).
Based on the results of the Labor Force Survey, conducted in accordance with European regulations, for the 4th quarter of 2007, the number of employees amounted to 384,852 persons (213,029 men and 171,823 women) and the number of unemployed to 14,051 people (6,629 men and Women 7422). Employment in the sector increased from 33,874 persons in 2006 to around 35.650 in 2007 and represented 9.3% of the gainfully employed population. And the registered unemployed in the sector did not exceed an average monthly number of 500 in the whole manufacturing sector.
During the period January - December 2007, 9,521 building permits were issued, a decrease of 2.8% over the corresponding period last year. The total value, of these permits, increased by 12.5% (1,628,418 million CYP) and the total area by 3.0%. The total area for the building permits completed in 2006 amounts to 3,507,487 m2 compared to 3,612,806 m2 respectively for 2007. Non-residential buildings amounted to 1102, a 25.3% reduction, civil engineering projects to 250 and a 17.5% reduction and then division of land projects and roads to 633 and an increase of 5.5% compared to 2006. By district, the number of new dwellings: 3064 Nicosia, Famagusta 500, Larnaca 1620, 2461 Limassol and Paphos 1876.
Finally, the Price Index of Construction Materials rose to 138.9 compared with 131.8 in 2006 and Labor Cost Index from 134.2 in 2006 to 140.4 in 2007.
Οδός Ανδροκλέους 3Α, 1060, Λευκωσία, Κύπρος,
