Rise in constructions led by hotels, residential also robust

Cyprus hotels lead construction growth, residential also robust

Construction activity in Cyprus is on the rise as the economy emerges from a severe economic downturn but where exactly is all the action taking place?

The latest data from the Cyprus statistics service shows that hotels are leading the charge, alongside strong growth in residential housing.

Figures for the January to November period last year show total building permits issued hit 1.34 million square metres, 45% higher than the same period a year earlier.

Cyprus tourism industry is lending support to property, with hotel permits up 158% at 62,807 square meters.

When looking at absolute numbers though, the residential building sector is outperforming. Building permits for homes jumped 43 percent year-on-year to 1.06 million square meters amidst an improvement in economic sentiment.

The president of the Cyprus Land and Propoerty Owners Organisation, Giorgios Mouskidis, said there is interest in real estate projects from developers after a freeze in construction sector brough on by the country's economic crisis.

"The needs of the people were always there but now with the recovery of the economy and improvement in sentiment, new constructions are going up," he said in comments published on stockwatch.com.cy.

Cyprus's economy is projected to continue growing at a rapid pace this year, according to the latest forecasts from the European Commission, which predicts a 3.2 percent growth rate for 2018 that will slow to 2.8% in 2019.