14.07.2022
Value added in the construction sector in Cyprus has fallen after 5 years of growth in 2020, according to the construction and land management survey conducted by the Statistical Office of Cyprus (Cystat).
The coronavirus outbreak, which first began that year, has been cited as the main cause of the fall.
The way construction value added is defined in the report is the value of production minus the total cost of production costs, administrative costs, and rent for buildings and equipment.
According to the report, value added at current prices fell by 3.9%, falling to 1.11 billion euros in 2020 from 1.16 billion euros in 2019.
In addition, the value of production in the general construction sector decreased by 0.2% in 2020, falling to 4.29 billion euros from 4.3 billion euros in 2019.
In addition, according to the survey, the total value of new construction in 2020 reached 2.46 billion euros, slightly lower than in 2019.
The cost of residential buildings in 2020 increased by 2 percent compared to 2019, while the cost of non-residential buildings fell by 4.4 percent. In addition, civil engineering projects decreased by 1.6%.
Finally, employment in the construction sector increased by 2.3% in 2020, reaching 34,800 compared to 34,000 in 2019.
According to data from the Statistical Office of Cyprus released on Wednesday, there was a decline in activity in the construction sector in Cyprus in 2022, which occurred due to the increase in the cost of building materials.
2022 reached 175.4 units (based on 2015 = 100.0), which means a decrease of 6.6% compared to the first quarter of 2021.
This is the third quarter in a row that the index has shown a year-on-year decline.
By project type, there was a 7.1% drop in buildings in the first quarter of 2022, as well as a 3.4% decline in civil engineering projects compared to the corresponding quarter of 2021.
At the same time, the producer price index in the same quarter showed a significant increase, the sharpest in recent years, reaching 124.90 units, up 10.1% year on year.
According to the report, this is the fifth consecutive quarter of year-on-year growth.
Compared to the fourth quarter of 2021, the index recorded an increase of 3%.
By project type, the number of buildings increased by 11.7% and the number of civil engineering projects increased by 4.8% compared to the previous quarter.
The Cyprus Stock Exchange (CSE) ended Wednesday, July 13, with losses.
The overall Cypriot stock market index stood at 66.51 points at 12:46 pm during the day, reflecting a 0.06% drop from the previous trading day.
The FTSE/CySE 20 Index stood at 39.79, down 0.05%.
The total transaction value was 7,543 euros.
On sub-indices, the main index fell by 0.07%. Alternative, investment and hotel indexes remained stable.
Pandora (no change), Bank of Cyprus (-0.21%), Blue Island (+1.76%), Mitsides (-10%) and Woolworth Cyprus Properties (no change) attracted the highest investment interest.
