Cyprus Business Now

Value added in the construction sector in Cyprus dropped after 5 years of growth in 2020, according to the construction and land development survey conducted by the Cyprus Statistical Service (Cystat).

The coronavirus outbreak, which first started during the same year, has been attributed as the primary reason for the drop.

The way the report defines value added in construction means the production value net of the total cost of production expenses, administrative expenses and rental fees paid for buildings and machinery.

According to the report, value added, at current prices, fell by 3.9 per cent, dropping to €1.11 billion in 2020, from €1.16 billion in 2019.

Moreover, production value in the general construction sector decreased by 0.2 per cent in 2020, dropping to €4.29 billion, compared to €4.3 billion in 2019.

In addition, according to the survey, new construction in 2020 reached €2.46 billion in total value, slightly lower than in 2019.

The value of residential buildings recorded an increase of 2 per cent in 2020 compared to 2019, while non-residential buildings fell by 4.4 per cent. Also, civil engineering projects declined by 1.6 per cent.

Finally, employment in the construction sector increased by 2.3 per cent in 2020, reaching 34,800 people, compared to 34,000 in 2019.

The Cypriot construction sector has experienced a decline in activity in 2022, something which has occurred in conjunction with the rise in construction material costs, according to data by the Cyprus Statistical Service released on Wednesday.

The Construction Production Index in the first quarter of 2022 reached 175.4 units (based on 2015=100.0), marking a decrease of 6.6 per cent compared to the first quarter of 2021.

This is the third consecutive quarter where the index experienced a year-on-year decline.

By project type, there was a 7.1 per cent fall in buildings, as well as a 3.4 per cent decrease in civil engineering projects in the first quarter of 2022, compared to the corresponding quarter of 2021.

At the same time, the Producer Price Index in the same quarter showed a significant rise, the sharpest in recent years, reaching 124.90 units, experiencing an increase of 10.1 per cent year-on-year.

This is the fifth consecutive quarter of year-on-year growth, according to the report.

Compared to the fourth quarter of 2021, the index recorded a 3 per cent increase.

By project type, there was an 11.7 per cent increase in buildings and a 4.8 per cent increase in civil engineering projects, both quarter-on-quarter.

The Cyprus Stock Exchange (CSE) ended Wednesday, July 13 with losses.

The general Cyprus Stock Market Index was at 66.51 points at 12:46 during the day, reflecting a drop of 0.06 per cent over the previous day of trading.

The FTSE / CySE 20 Index was at 39.79 points, which represents a decrease of 0.05 per cent.

The total value of transactions came up to €7,543.

In terms of the sub-indexes, the main index fell by 0.07 per cent. The alternative, investment firm and hotel indexes remained stable.

The biggest investment interest was attracted by Pandora (no change), the Bank of Cyprus (-0.21 per cent), Blue Island (+1.76 per cent), Mitsides (-10 per cent) and Woolworth Cyprus Properties (no change).